Verizon 1Q profit surges on Vodafone-related gains
NEW YORK (AP) — Verizon’s $130 billion deal to take over of all of Verizon Wireless is helping lift its profit.
The largest U.S. cellphone carrier completed its acquisition of the 45 percent stake in its wireless division from British mobile phone carrier Vodafone Group PLC in February.
Verizon Communications Inc. said Thursday that its first-quarter net income rose 23 percent to $5.99 billion, or $1.15 per share, from $4.86 billion, or 68 cents per share, in the January-March quarter of 2013.
Excluding one-time items, profit came to 84 cents per share in the most recent quarter. Analysts’ average estimate was 86 cents per share, according to FactSet.
Revenue rose 5 percent to $30.82 billion from $29.42 billion. Wall Street projected $30.66 billion.
Total revenue at Verizon’s wireless business increased 7 percent to $20.9 billion. The company added a net 549,000 new devices to its network during the recent quarter. Of that, 539,000 were connections that involved monthly service contracts.
Meanwhile, revenue at the company’s arm that provides landlines along with its FIOS internet and TV services rose 6 percent to $3.8 billion, boosted by higher demand for FIOS.
Verizon shares edged up 22 cents to $47.65 in premarket trading.