With record-breaking performance from Verizon Wireless, and strong revenue growth, Verizon Communications reported $2.1 billion in earnings for the second quarter.
Included in this number was $336 million from the sale of wireline and directory operations in Hawaii, plus tax benefits of $242 million recognized on prior-year investment losses, partially offset by net tax expense of $232 million for the repatriation of foreign earnings.
“These are strong first-half results, with contributions from all segments of our diverse revenue base,” said Verizon chairman and CEO Ivan Seidenberg. “Wireless in particular remains in high gear.” According to a press release,
The tax on repatriated foreign earnings relates primarily to the more than $2 billion that Verizon expects to receive in 2005 from share buybacks initiated by Italian wireless provider Vodafone Omnitel. Verizon received $1.2 billion in proceeds in the second quarter 2005 and anticipates receiving the final amount in the second half of 2005.
Consolidated operating revenues of $18.6 billion in the second quarter 2005 set a company record, increasing 4.6 percent compared with the second quarter 2004. Consolidated operating revenues on a comparable basis (non-GAAP measure, excluding revenues from Verizon’s Hawaii operations in both periods) were $18.5 billion in the second quarter 2005. This is an increase of 5.1 percent, or $0.9 billion, compared with the second quarter 2004.
“Because of the healthy margins in our wireless business, we are able to take the steps to increase our market share, which we did effectively this quarter,” added Seidenberg.
Total revenues for the second quarter at Verizon Wireless went up 14.6%, or $1.0 billion, to $7.8 billion from the same period in 2004. This is the 12th quarter in a row that Verizon Wireless had more than 10% year-over-year increases.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
