Grant Gross
Senior Writer

Verizon revenue, net income up on Fios strength

news
Jul 30, 20072 mins

Increases in data and wireless revenues fuel $1.7 billion net income for Verizon's second quarter

Verizon Communications reported net income of $1.7 billion for the second quarter of 2007, up slightly from a year ago, fueled largely by increases in data and wireless revenues.

Verizon’s net income a year ago was $1.6 billion. The company reported an increase of 11.6 percent in data revenue, totaling $4.4 billion, and a 17.1 percent increase in wireless revenue, totaling $10.8 billion.

Verizon’s total revenue for the quarter was $23.3 billion, up 6.3 percent from the second quarter of 2006.

Earnings per share for this quarter, which ended June 30, were $0.58, compared to $0.43 per share before discontinued operations in the second quarter of 2006.

The company’s focus on “organic revenue growth and improving margins” is gaining steam, Chairman and CEO Ivan Seidenberg said in a statement. Verizon is “producing accelerating and sustainable” growth, he added.

New customers for Verizon’s Fios fiber-to-the-home television service helped spur the increased revenue. About 167,000 new customers signed up for the Fios TV service, bringing the customer base to 515,000. Verizon reported 288,000 new broadband connections for the quarter, including Fios and DSL (digital subscriber lines); 203,000 of the new broadband connections were Fios service. Verizon now has 1.1 million Fios broadband customers, it said.

Verizon Wireless reported 1.6 million additional customers, bringing its retail customer base up to 60.1 million.

Verizon’s Business division reported revenue of $5.3 billion, up 2.4 percent from a year ago. It was the third consecutive quarter of revenue growth for the Business unit, Verizon said.

Revenue at Verizon’s Wireline division, however, were down 1.1 percent, to $12.6 billion. This was caused in part by declines in the number of former MCI customers, the company said. Verizon acquired MCI in January 2006.

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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