Verizon Communications reported a 25 percent drop in third-quarter profit on Friday, citing pension settlements resulting from layoffs and voluntary departures.
Net income dipped to $881 million, or 31 cents a share, considerably lower than the $1.18 billion, or 41 cents a share reported a year ago. Operating revenue slipped nearly 3 percent, to $26.5 billion, from $27.3 billion in the same quarter a year ago. Analysts had expected revenue of $26.3 billion.
?We are building momentum and are on track to achieve our goal of growing earnings in the second half of the year,? Ivan G. Seidenberg, chief executive of Verizon Communications, said in a statement. ?We are excited by the opportunities we see to expand wireline margins and the growth we see related to the upcoming launch of next-generation wireless services.?
Verizon Wireless added fewer new contract customers in the quarter than its main rival, AT&T. Verizon reported a net addition of 584,000 contract customers in the quarter, while AT&T added 745,000.
Still, Verizon managed to hold onto its title of the nation?s largest wireless carrier. Verizon?s total subscriber pool increased by nearly 5 percent over the previous year, to 93.2 million wireless customers.
?We are confident in the long-term potential of our business and in our ability to return long-term value to shareowners,? Mr. Seidenberg said.
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