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Verizon Q3 Profit Up, But Misses Estimates(dpa-AFX International Compact Via Acquire Media NewsEdge) NEW YORK CITY (dpa-AFX) - Telecom giant Verizon Communications Inc. (VZ) Tuesday reported a rise in the third-quarter profit, as revenues grew more than 4 percent, with strong customer additions. Earnings per share missed analysts' estimates, while revenues came slightly above view. For full year 2014, Verizon continues to target consolidated top-line growth of 4 percent. For the third quarter, net income attributable to the company climbed to $3.70 billion or $0.89 per share from $2.23 billion or $0.78 per share in the previous year. For the prior-year quarter, the company had posted adjusted earnings of $0.77 per share. On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $0.90 for the quarter. Analysts' estimates typically exclude special items. Operating revenues grew 4.3 percent to $31.59 billion from $30.28 billion last year. Analysts expected revenue of $31.58 billion for the quarter. Excluding third-quarter 2013 revenues of the public sector business Verizon divested at the beginning of third-quarter 2014, the comparable growth rate, on an adjusted basis, would have been 4.9 percent, the firm said. In Verizon Wireless, total revenues were $21.8 billion, up 7 percent from a year ago. Service revenues increased 4.8 percent year-over-year, and retail service revenues grew 4.6 percent. Retail postpaid average revenue per account or ARPA, rose 3.5 percent to $161.24 per month. Retail postpaid churn was 1.00 percent, up 3 basis points from the prior year. Verizon Wireless added 1.53 million retail net connections, including 1.52 million retail postpaid connections in the quarter. Verizon Wireless had 35.4 million retail postpaid accounts at the end of the third quarter, up 1.3 percent over third-quarter of 2013. At the end of the quarter, the company had 106.2 million retail connections, including 100.1 million retail postpaid connections, a 5.2 percent increase from last year. In the Wireline business, total revenues edged down 0.8 percent to $9.6 billion. Consumer revenues were $3.9 billion, up 4.5 percent from last year, with FiOS revenues representing 76 percent of the total. Total FiOS revenues grew 13.4 percent to $3.2 billion. Consumer average revenue per user or ARPU for wireline services increased to $125.32 per month, up 10.3 percent from the year-ago quarter. Verizon added 162,000 net new FiOS Internet connections and 114,000 net new FiOS Video connections in the quarter. Total operating expenses were $24.70 billion, up 6.7 percent from the preceding year. Chairman and CEO Lowell McAdam said, "We have great confidence heading into the fourth quarter, as Verizon continues to deliver consistently strong operating and financial results. We see continued, healthy customer demand for wireless and broadband services..." VZ is currently trading at $48.42, down 0.12 percent. Copyright RTT News/dpa-AFX |