Verizon Communications Inc. said it swung to a fourth-quarter
profit, as the phone carrier continues to benefit from rising
wireless and FiOS customers.
Verizon posted a profit of $5.07 billion, or $1.76 a share,
compared with a year-earlier loss of $4.23 billion, or $1.48 a
share. Both quarters included significant nonoperational items,
primarily related to the annual actuarial valuation of benefit
plans and mark-to-market pension adjustments. Adjusted earnings
were 66 cents a share in the latest period, up from 38 cents a
share a year ago.
Revenue improved 3.4% to $31.07 billion.
Wall Street analysts on average expected earnings of 65 cents a
share and revenue of $31.02 billion, according to Thomson
Reuters.
Verizon and AT&T Inc., by far the two biggest wireless
carriers, are facing renewed pressure from rivals T-Mobile US Inc.
and Sprint Corp. The battle for customers could become even more
heated if Sprint goes through with a potential bid for T-Mobile,
creating a more viable third-place competitor in the wireless
industry.
The larger players aren't sitting still. Verizon late last year
reached a $130 billion agreement to buy Vodafone Group PLC's 45%
stake in Verizon Wireless and AT&T has made several deals of
its own, including the acquisition of prepaid carrier Leap Wireless
International Inc. for $1.2 billion plus $2.8 billion in net
debt.
Earlier Tuesday, Verizon agreed to buy from Intel Corp. the
assets of Intel Media, a business division that develops Cloud TV
products and services.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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