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Verizon posts record 4Q loss on pension adjustment

Published on NewsOK Modified: January 22, 2013 at 5:40 pm •  Published: January 22, 2013
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IPhone sales are not an immediate benefit to the company, since it sells them at a big loss. It recoups the money over the life of a two-year contract, but the blockbuster sales helped curb its fourth-quarter loss.

Verizon's stock rose 40 cents to close at $42.94 Tuesday.

Verizon Wireless revenue climbed 9.5 percent to $20 billion and contributed nearly all of the profit, as usual. Verizon Communications owns 55 percent of Verizon Wireless. The rest is owned by Vodafone Group PLC, which gets a corresponding share of its profits.

On the wired side, operating revenue continued its long slide, falling 1.5 percent to $10 billion as households kept cancelling their landlines.

To compensate, Verizon added a net 144,000 Internet customers and 134,000 pay-TV customers to its FiOS fiber-optic service, bringing the company to a total of 5.4 million FiOS Internet and 4.7 million FiOS Video customers.

For the year, Verizon Communications earned $875 million, or 31 cents per share. In 2011, it earned $2.4 billion, or 85 cents per share. Annual revenue increased to $115.85 billion from $110.88 billion.

Verizon's report marks the debut for telecommunications companies this earnings season. Rival AT&T Inc. reports on Thursday.

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AP Business Writer Michelle Chapman contributed to this report.