Verizon profit surge proving to be a boon to Irish investors
Verizon Communications, the largest US wireless telecommunications company, has reported better-than-expected quarterly revenue, sending shares higher yesterday.
It is good news for any of the 400,000 former Vodafone shareholders in Ireland that were issued with Verizon shares in February, and who opted not to sell the paper.
Irish Vodafone shareholders, many of them former Eircom investors, received the shares along with cash after Verizon bought out the 45pc stake it did not hold in joint venture Verizon Wireless from ex partner Vodafone.
Shares in Verizon were trading at $50.84 yesterday, almost 10pc higher than the $46.23 level on February 24, when stock was issued to Vodafone shareholders. Operating revenue in the second quarter rose 5.7pc to $31.48bn (€23.3bn).
Revenues were up following a jump in the number of wireless customers and a surge in tablet sales.
Profit in the second quarter beat Wall Street estimates, rising 88pc following the Verizon Wireless buyout to $4.21bn.
That works out at a profit of $1.01 a share, or $0.91 a share after exceptional items, compared to $0.78 a share last year.
Verizon's wireless unit's revenue account for more than two-third of total sales.
Fixed line sales rose for the first time in seven years, the company said. (Additional reporting Reuters)