Verizon’s quarterly result is a tale of two companies: the well-performed wireless division, which boosted its income 29%, and the shrinking wireline group.
Verizon, the largest US carrier, added 1.3 million mobile customers to take its total to 89 million, it said yesterday
. Wireless sales were up 23.7%, powered by demand for mobile data services. Wireless data ARPU was up 17% to $15.59.
But profit in the wireline business fell 57.6% to $444 million as it ended the quarter with just under 19 million access lines, a 12.3% fall from a year ago.
This was partially offset by growth in FIOS, which added another 198,000 customers, helping to grow consumer wireline ARPU 12.6% to $75. The global business group increased revenue 1% to $1.6 billion over Q3 2008.
“Verizon continues to generate strong cash flow, which we have used in building the foundation for sustainable, long-term shareowner value,” said chairman and CEO Ivan Seidenberg.
“As the US economic and employment picture improves, and as we accelerate reductions in our own cost structure, we are well-positioned to quickly and significantly improve our growth profile,” he said.