Verizon Communications managed to beat financial targets in the third quarter, thanks to the continued rapid growth of its wireless division.

The New York-based telephone giant earned a profit of $1.8 billion, or $0.62/share, in the three months that ended September 30, compared with $1.79 billion in the same period last year.

Revenue increased significantly to $23.25 billion, compared to $18.49 billion a year ago. Overall profit margins, however, were down somewhat, largely due to the high costs of deploying fiber optic broadband infrastructure.

Verizon Wireless, meanwhile, which is owned jointly by Verizon and Vodafone, saw a big improvement in both subscriber additions (1.9 million in Q3) and profit margins. The division’s revenue was up 18.2% to $9.9 billion in the third-quarter, while its operating income margin soared to 26.2%, higher than ever before.

Verizon’s broadband division also had a good quarter, adding 448,000 (net) high-speed internet subscription, including 147,000 on the new fiber optic network. The company now provides broadband access to about 6.6 million households, 522,000 of which use FiOS.

Verizon continues to win customers and market share for wireless, broadband and enterprise services,??? commented the telecom giant’s CEO, Ivan Seidenberg. These organic growth initiatives gained momentum in the third quarter, and we are confident this growth is sustainable. We are building long-term shareholder value on a foundation of infrastructure and technology investment, supported by innovative marketing and customer service initiatives.???

Source- http://www.teleclick.ca