Verizon Post 30 Percent Drop in Profit Due to Reconstruction Costs
Telecoms giant Verizon, the second largest phone company in the US, posted on Monday some 30 percent drop in its third quarter profit or down $1.18 billion.
Company officials said that it was mainly because of low subscribers turnout in the past three months and high-cost acquisitions it has made in the development of its wireless, fiber optics, and Internet business.
The second largest telecommunications company in the United States, Verizon Communications Inc., on Monday reported a 30 percent drop in its third quarter profit due to low acquisitions for new subscribers following outside deals and cuts in its workforce.
According to Verizon, the drop was due to the innovations being done inside its business operations as the company sets its eyes into reinforcing its wireless networks, fiber optic FiOS TV, and Internet service. It will be recalled that the telecoms company has posted a large downturn in its landline phone business several months into the recession.
Due to shortfalls in its profit, Verizon announced that it will be cutting more than 8, 000 workers and contractor. The company said that it is already halfway in the implementation, which will end in the last two weeks of 2009.
Verizon officials said that the last three months of operations has been a “balancing act” for the company as it tries to weigh what business moves it should implement in the coming months.“We have better line of sight now,” Verizon chief executive officer Ivan Seidenberg said.
Verizon was only able to make $1.18 billion in the third quarter of 2009, lower than its 2008 output of $1.67.Analysts said that the company is obviously making a jump from landline telephone to wireless as profits in this segment make more money for the company.
Comment
Categories
- Franchise Opportunities
- Wholesale Business Opportunities
- Small Manufacturing Business
- Farming Business Ideas
- Unique Business Opportunities
- Shop Business Ideas
- Small Business Opportunities
- Startup Company Ideas
- Home Based Business Opportunity
- Rural Business Opportunities
- Tips for Buying and Selling
- Starting Rental Business
- Ideas for Small Business
- Free Business Ideas
- Internet Business Ideas
- Store Business Opportunities
- Entrepreneur Business Idea
- Retail Store Ideas
- Service Business Ideas
- Advice for Small Business
- Financing a Small Business
- Restaurant Business Opportunities
- Small Business Articles
- Business Marketing and Advertising
- Business News
- Repair Business Opportunity
- Professional Career Opportunities
- Business Insurance Information
- Instructor Guides
