Verizon revenue up, but net income down

Verizon posted net income of $1 billion for the fourth quarter of 2006, compared to $1.7 billion for the fourth quarter of 2005, the company reported Monday.

The difference was largely due to one-time charges, including costs associated with the company selling some Caribbean operations. Verizon's operating revenue for the fourth quarter was $22.6 billion, compared to $17.9 billion in the fourth quarter of 2005.

Income before one-time charges for the quarter reported was $1.4 billion, compared to $1.3 billion a year earlier.

Earnings per share after one-time charges was $0.35 for the fourth quarter of 2006, which ended Dec. 31, 2006, compared to $0.60 for the fourth quarter of 2005.

Verizon is focused on "long-term, high-margin organic growth," Chairman and Chief Executive Officer Ivan Seidenberg said in a statement. Verizon expanded its global reach in 2006 and grew its profitable broadband business, he said. The company is "well-positioned" this year, he added.

Among the highlights for the quarter, according to Verizon:

-- Verizon Wireless added 2.3 million new customers, the second quarter in the company's history that customer additions exceeded 2 million. Verizon Wireless' revenue was $10.1 billion for the quarter, up more than 16 percent from a year ago.

-- At the end of 2006, Verizon served 7 million [m] broadband connections, including DSL and its high-speed FiOS service. That was an increase of nearly 36 percent from the end of 2005. Verizon added 409,000 broadband connections in the fourth quarter of 2006, including 165,000 new FiOS customers.

-- Verizon Business, the company's unit focused on large-business customers, had revenue of $5.3 billion in the fourth quarter of 2006, up nearly 3 percent from the fourth quarter of 2005.

For the full year, Verizon reported revenue of $88.1 billion, up from $69.5 billion in 2005. Net income was down about 16 percent, from $7.4 billion in 2005 to $6.2 billion in 2006, again partly due to one-time charges.

The IDG News Service is a Network World affiliate.