iPhone Sales, New Customer Contracts Boost Verizon’s Bottom Line

Verizon announced Thursday a third consecutive quarter of double-digit percentage growth in year-over-year earnings, getting a lift from iPhone sales and an addition of 1.5 million new postpaid wireless customers on contract in the third quarter. That’s its biggest increase in customers in four years.

Overall, company profits were up 16 percent, despite a wireline business that continues to struggle. Revenue on that side of the biz fell 2.3 percent but managed to keep from falling further due to growth in its FiOS TV and Internet offerings.

In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year,” said Lowell McAdam, Verizon chairman and CEO.

Verizon Enterprise Solutions experienced growth in the quarter. "The organization saw new customers leveraging its dynamic cloud, intelligent networks, mobility and machine-to-machine (M2M) platforms," Verizon said.

Meantime, the company announced an agreement to transfer pension assets to The Prudential Insurance Company of America by purchasing a single premium group-annuity contract to settle approximately $7.5 billion of Verizons obligations for approximately 41,000 participants under its management pension plan. The closing of the transaction, which is subject to certain conditions, is expected to occur in December 2012.

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