Verizon with more sales – economy

Telekom subsidiary T-Mobile’s competitor in the US, Verizon, is reporting increased sales but declining profits. The company lost nearly 300,000 mobile contract customers.

New York (dpa) – US telecommunications group Verizon reported an increase in sales in the first quarter of this year, but a decline in profits.

The company, which competes with Telekom subsidiary T-Mobile US, made the announcement in New York.

Verizon’s consolidated sales increased 2% to $33.6 billion compared to the same quarter last year. Verizon benefited above all from rising revenue from mobile communications services. However, the company actually lost 292,000 mobile contract customers, while rival AT&T already reported a massive increase of 691,000 new contracts after deducting cancellations the day before.

Operating profit remained stable at just under $7.8 billion. The net result is that profits have fallen by about an eighth to $4.7 billion – even though the group has had to pay lower taxes and interest. The reason for the decrease is due to the item of expenses and other income. A year ago, the group reported income of $400 million here, while expenses of just over $900 million were incurred at the beginning of the year. Verizon posts expenses for pension obligations or early loan repayments here, among other things.

Nancy Stevens

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