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Verizon Communications Inc. earnings up on Wireless Subscriber Growth

By Amarendra Bhushan for CEOWORLD Magazine Updated:July 28, 2008

“Verizon continued to grow in all key strategic areas in the second quarter, despite the economic headwinds,” said Verizon Chairman and CEO Ivan Seidenberg.

The company added 1.5 million new wireless subscribers to hit 68.7 million and subscriber churn dropped to 1.12%.

Verizon Communications Inc. the No. 2 U.S. phone service provider also picked up 176,000 new FiOS fiber-to-the-home TV/broadband/voice customers, bad news for competing cable companies.

`Verizon has really been adept at putting together the full package of best-in-class marketing and customer service,” said William Power, an analyst at Robert W. Baird & Co. in Dallas.

- Verizon’s total operating revenues grew to $24.1 billion in the second quarter 2008

- Verizon’s operating income grew 9.6 percent to $4.5 billion.

- The 176,000 net new FiOS TV customers raised the company’s total to nearly 1.4 million

- Verizon Communications up 11.8 percent to $1.88 billion, or 66 cents a share

- The company added 1.5 million wireless phone customers

- 176,000 cable television customers and 187,000 Internet customers.

- Verizon shares closed at $34.45 a share on Friday, down 54 cents.

- Quarterly revenue rose to $24.12 billion from $23.27 billion.

- Verizon Wireless, owned by Verizon and Vodafone Group

- It added 187,000 FiOS Internet customers, bringing the total to 2 million.

- Verizon is spending $23 billion over seven years to extend fiber-optic lines into homes to boost Internet speeds and carry TV signals.

- It plans to have the service available in 18 million homes by the end of 2010

- The company agreed in June to buy Alltel Corp. for $28.1 billion in cash and debt, allowing it to vault past AT&T as the biggest U.S. wireless carrier.

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