Subject: [NEXTEL-1] Verizon Posts 2Q Profit, Reaffirms 2003 Outlook

From: [email-masked]
Date: Tue, 29 Jul 2003 20:49:21 -0400

Verizon Posts 2Q Profit, Reaffirms 2003 Outlook

Verizon Communications [NYSE: VZ] reported a second-quarter profit of $338
million, or 12 cents a share, compared with a loss of $2.1 billion, or 78 cents a
share, a year ago. Revenues for the quarter increased to $16.83 billion from
$16.75 billion a year ago.  The company added 1.4 million long-distance lines in
the quarter, giving it a total of 14.6 million long-distance lines. Verizon
reaffirmed its full-year earnings guidance of $2.70 to $2.80 a share, before
special items, on flat to 2 percent higher revenues. It also expects capital
spending of $12.5 billion to $13.5 billion, and a $3 billion to $4 billion
reduction in net debt to a range of $46 billion to $47 billion.
Though the company posted an overall solid quarter, two areas of
concern for Verizon going forward remain: disappointing DSL growth
and continued losses in UNE-P revenue. The company's lines in
service fell 3.7 percent and it only added 101,000 DSL lines for the
quarter, giving it 1.9 million Internet access lines at the end of
June.

"[Verizon's] DSL side is kind of disappointing relative to expectations because
the company is shifting its marketing forces in order to cut churn," James Lee, a
wireline analyst for investment firm Fidelity Capital Markets, told Communications
Today. "On the wireline side, you will continue to see UNE-P losses. The bottom
line, looking from a balance sheet perspective, is that the company did really,
really well. The most important thing is that they lowered their net debt target
[for this year] by about $4 billion."

http://www.TelecomWeb.com

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