telecommunications
Verizon with more sales
Verizon’s operating profit remains stable at just under $7.8 billion. Photo: Bebeto Matthews/AP/dpa
© dpa-infocom GmbH
The competitor of the Telekom subsidiary T-Mobile in the USA, Verizon, is recording rising sales but falling profits. The company lost almost 300,000 mobile contract customers.
The US telecoms group Verizon recorded rising sales in the first quarter of the current year, but falling profits.
The company, which competes with the Telekom subsidiary T-Mobile US, announced this in New York.
Verizon’s consolidated sales increased by two percent to $33.6 billion compared to the same quarter last year. Verizon benefited above all from higher revenues from mobile communications services. However, the company effectively lost 292,000 mobile contract customers, while the competitor AT&T had already reported a significant increase of 691,000 new contracts after deducting cancellations the day before.
Operating profit remained stable at just under $7.8 billion. The bottom line is that profits fell by around an eighth to $4.7 billion – even though the group had to pay less taxes and interest. The decrease is due to the item other expenses and income. A year ago, the group had posted income of $400 million here, while expenses of just over $900 million were incurred at the start of the year. Verizon posts expenses for pension obligations or early loan repayments here, among other things.