Om Malik on VZ earnings report. — Iain —
Verizon reported a mixed bag of earnings this morning: company’s wireless and broadband business are doing just fine, in fact better than most expected. The wireline business is well, becoming a bit of drag.
Verizon Wireless added 1.9 million net customers in the third quarter 2006, up 15.1% from the third quarter 2005, and now the company has a total of 56.7 million customers of which 54.6 million retail (non-wholesale) customers. The revenues for the wireless business were up 18.2% from third quarter 2005.
Broadband is where the company showed better than expected results. Analysts expected Verizon to add about 130,000 FiOS customers, the company added about 147,000 in the third quarter. Some analysts expected 55,000 video customers, VZ added 63,000.
The total broadband net additions however were software than what analysts had expected: 448,000 versus 500,000+ forecast. Another proof that the DSL market is seriously slowing down. All these gains were not enough to offset the problems in traditional voice and other businesses. Wireline revenues were down 4.7% for the quarter.