Verizon Reports Second-Quarter Earnings
Verizon Communications on Monday announced plans to trim its workforce by 8,000 jobs as it posted a 21 percent drop in second-quarter earnings.
From April to June, Verizon generated $1.48 billion in earnings, which translates into 52 cents per share. The communications firm reported $1.88 billion, or 66 cents per share, in earnings during the same period last year.
The company’s earnings did, however, beat the projections of Wall Street analysts. Verizon said its demand for services including cell phones and television are withstanding the recession.
At the end of the second quarter, Verizon held 235,000 employees, which is still more than the 229,000 it held last year. Over the course of the year, the company has cute 8,000 jobs, excluding contracting positions.
“We probably will not have large-scale hiring until we’re out of the recession,” Verizon Chief Operating Officer Denny Strigl told the Associated Press.
Verizon’s revenue was up 11 percent from $24.1 billion last year to $26.86 last quarter.
The company reported a total of 87.7 million total wireless customers, which is an increase of 27.7 percent. Additionally, Verizon said it had signed up 300,000 net new customers for its FiOS TV service, as well as a record of 303,000 net new FiOS Internet customers.
“This resilience in consumer demand for our wireless, broadband and video products has again produced overall revenue growth despite cyclical impacts, especially in business markets,” Verizon Chairman and CEO Ivan Seidenberg said in a statement.
“Verizon’s continued strong cash flow reflects the exceptional focus and disciplined execution across our business.”
Shares of Verizon decreased by 95 cents, or 3 percent, to $30,55 in morning trading, according to the AP.
In comparison, wireless provider AT&T reported the most subscribers during the second quarter ““ 1.37 million ““ which is primarily attributed to sales of Apple Inc’s iPhone.
Image Courtesy Of Verizon
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