America’s second largest telephone provider, Verizon Communications, announced a 38% decline in fourth-quarter profit , but delivered encouraging news about the ongoing roll-out of its FiOS television network.
CEO, Ivan Seidenberg, says that the telecom giant is investing the bulk of its impressive wireless profits into building a faster broadband and TV network. The new fiber optic network is intended to compete with cable companies, such as Comcast.
“You have to believe that the money that they’re spending is working,'’ commented Philadelphia Trust Co. investment manager, Richard Sichel, who invests heavily in Verizon shares. “It looks as though it is.”
The New York-based telephone operator’s net profits came in at $1.03 billion, or $0.35/share, for the final quarter of 2006, compared to $1.66 billion ($0.59/share) during the same period a year previous. Total revenue for the quarter increased by 26% to $22.6 billion, roughly in line with the expectations of analysts.
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