Verizon 1Q Net Rises 47%, Driven By Wireless Business"

NEW YORK -(Dow Jones)- Verizon Communications Inc.'s (VZ) first-quarter profit rose 47%, driven by its wireless business as well as the absence of a year-ago charge for work-force reductions.

In a press release Wednesday, the communications company said it earned $1.76 billion, or 63 cents a share, for the first quarter, topping Wall Street's average view of 60 cents a share.

In the year-ago quarter, the company earned $1.2 billion, or 43 cents a share, which included pension settlements associated with a voluntary separation plan. Adjusted earnings for the period, which exclude special items, were 58 cents a share.

Earlier this week, MCI Inc. (MCIP) finally , but tentatively, embraced Qwest Communcations International Inc.'s (Q) takeover bid. However, Verizon is widely expected to boost its current bid of $$7.5 billion, or $23.10 a share.

Verizon reported its first-quarter revenue increased 6.6% to $18.2 billion, lifted by the fifth consecutive quarter of more than 20% total revenue growth at Verizon Wireless from a year earlier.

Analysts, on average, were looking for revenue of $18.1 billion for the quarter ended March.

Verizon Wireless contributed $7.4 billion, or 40.8%, of first-quarter revenues, up from wireless revenue of $6.2 billion, or 36.1% of revenue, in the first quarter of 2004.

Operating revenue for Domestic Telecom, the company's U.S. wireline business segment, was $9.5 billion in the first quarter, down 1.2% from $9.6 billion in the first quarter of 2004. This is the segment's lowest rate of revenue decline in nearly four years.

Verizon Wireless added 1.64 net new customers during the quarter, the largest first-quarter customer increase in the history of the company. Wireless has added more than 6.5 million net new customers over the past year and now has a total of 45.5 million customers nationwide.

Customer turnover in the wireless segment reached record-low levels for the second consecutive quarter.

The company added a net of 385,000 wireline broadband connections in the first quarter for a total of 3.9 million broadband connections - up 48% from a year earlier. Wireline broadband connections include both DSL lines and new FiOS next-generation, fiber-optic-based services.

DSL net additions in the first quarter were the highest quarterly total in Verizon's history, representing the vast majority of the 385,000 total.

(END) Dow Jones Newswires"

Posted to the site on 27th April 2005