Boosted By Wireless Growth, Verizon Reports Increase In Profits

Net income was up 4.5% to $1.7 billion while revenue rose 6.3% to $23.3 billion.

Verizon Communications reported Monday that its second quarter revenue and profits rose, driven by growth in the firm's major sectors and accelerating growth in its Verizon Wireless unit.

Net income was up 4.5% to $1.7 billion while revenue rose 6.3% to $23.3 billion.

Verizon Wireless, which is jointly owned by Verizon and Vodafone Group continued as the firm's star performer, adding 1.6 million retail net customer.

Verizon also showed signs that it was slowing the loss of wireline customers as it reported a 3.4% increase in its legacy wireline business. Also 167,000 net new FiOS customers signed up for Verizon's high-speed fiber service.

"Verizon's strategy of focusing on organic revenue growth and improving margins continues to gain momentum," said Verizon chairman and CEO Ivan Seidenberg, in a statement. "We are confident we have the products and services, distribution infrastructure, and customer service capabilities to continue to capture share from the competition in strategic markets."

Verizon is facing its stiffest competition in wireless from AT&T's former Cingular Wireless unit and across-the-board from cable firms that are offering telephone and broadband service along with TV.

The company's FiOS Internet footprint continued to widen and was available to 5.7 million premises in portions of 16 states by the end of the quarter. FiOS TV was offered in nearly 500 communities in 12 states, Verizon reported. While the company said it is pleased with the FiOS rollout, it is still unprofitable, although on target for future profitability.

The company reported that Verizon Wireless' CDMA2000 EV-DO Rev A high-speed broadband service is available throughout the unit's nationwide network covering more than 210 million persons. "At the end of the second quarter," Verizon said, "46% of the company's retail customers -- 27.5 million -- had broadband-capable devices."

Verizon said its Verizon Business unit recorded revenue of $5.3 billion representing a 2.4% growth compared with the second quarter of 2006.

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