A Sunny Report From Verizon (VZ)

April 28, 2008 by Douglas A. McIntyre

Verizon (VZ) had a quarter which indicated that no matter what is wrong with the economy people are still subscribing to cellular service.

Revenue at the phone company rose 5.5% to $23.8 billion. Operating income rose 14.1% to $4.3 billion.

The most important number was from Verizon Wireless, which is 80% owned by Verizon and 20% owned by Vodafone (VOD). The company claims it had the highest net subscriber adds in the industry — 1.5 million net additions taking it to 67.2 million total customers. Who needs that iPhone.

Verizon’s fiber-to-the-home business seems to still be taking a lot of customers from cable. Th firm added 263,000 net new FiOS TV customers and 262,000 net new FiOS internet customers, for a total of 1.2 million FiOS TV customers and 1.8 million FiOS Internet customers.

It may be a bad day for cable shares.

Douglas A. McIntyre