Vodafone tie-up pays for Verizon as it prepares to take full control

City A.M. Reporter
VERIZON Communications yesterday posted stronger- than-expected third-quarter earnings and revenue driven by wireless growth, sending its shares upwards.

While wireless customer growth was slightly below Wall Street estimates, its Verizon Wireless venture with Vodafone Group posted good profit and revenue growth as customers spent more on data services.Verizon has agreed to buy out Vodafone’s 45 per cent share of the venture.

Verizon reported a third-quarter profit of $2.2bn (£1.4bn), or 78 cents per share, compared with $1.59bn, or 56 cents per share, a year ago.

Excluding unusual items, Verizon earned 77 cents per share in the quarter, compared with Wall Street expectations of 74 cents.

Strong wireless service revenue growth for the quarter was offset by a decline of three per cent in its global enterprise business and a slower 4.3 per cent rise in its consumer business, which includes its FiOS television service.