Verizon Profits Up as it Adds Wireless Customers, Cuts Churn

Verizon Communications Inc. (NYSE: VZ) Monday reported first-quarter adjusted earnings of $1.74 billion, or 61 cents a share, a gain of 9.8 percent, in line with analyst expectations, thanks to gains in wireless, and a continuing decrease in churn rates.

The company added 1.5 million net wireless customers, while churn was 1.19 percent, far below the 1.7 percent churn numbers posted in the first quarter by AT&T (“ATT Profits Rise as it Keeps Churn in Check,” April 24) and other carriers.

However, Verizon lost 8.2 percent of its wire line customers, as an increasing number of customers opt for Voice over Internet Protocol (VoIP) or drop wire lines in favor of wireless phones.

“Verizon has weathered the current economic uncertainty with strong first-quarter results,” said Verizon Chairman and CEO Ivan Seidenberg in a statement. “In wireless, we are changing the game with our open development initiative, our plans for next-generation technology deployment, and our strategic investment in spectrum for nationwide broadband services. In wire line, we have spun off non-strategic access lines, and we continue to introduce innovative FiOS and enterprise services."

FiOS, the company’s fiber optic television service, added 263,000 customers in the quarter for a total of 1.2 million customers.