Despite the drop in profits, total revenues for the company rose to $32bn (£21.4bn) from $30.82bn during the first quarter compared to the same period last year. This was partly driven by the American communications company adding a net 565,000 retail postpaid subscribers in the three months ending 31 March. The company also recorded a decline in its quarterly “churn” - the number of customer defections - which fell to 1.03 per cent from 1.07 per cent the previous year.
Individually, Verizon’s FiOS Internet and video business was the strongest performing sector for the company with revenues up 10 per cent on a like-for-like basis to $3.4bn.
Revenues at the firm’s wireless division also recorded strong gains, climbing seven per cent to $22.33bn during the period.
However, the company saw its pre-tax profits slip to $6.7bn, down from $6.9bn during the same period last year after expenditure on services and sales rose eight per cent to $12.1bn. Despite the fall in pre-tax profits, earnings per share came in at $1.03 compared to analyst expectations on 95 cents, with shares closing up 0.14 per cent in New York.
Chairman Lowell McAdam praised the results, saying: “Verizon is off to a strong start in 2015 with another quarter of profitable growth.”