Wednesday, September 17, 2008

Verizon Sees Steady Progress So Far in Q3

Verizon is on target for achieving its long-range plans, said Denny Strigl, Verizon's President & COO, speaking at the Goldman Sachs Communacopia XVII Conference. This confidence led Verizon to recently increase its dividend. Moving forward, Strigl said he continues to look at how to take cost out of the business while improving the product mix, especially in wireless and broadband. He remains bullish about long-term opportunities.

Commenting on current market conditions, Strigl said the wireless division will achieve solid net add growth in Q3. There has been no change in quarter after quarter performance. Verizon Telecom continues to come on strong and broadband growth is stabilizing. The company is working toward improving margins. The FiOS business case continues to improve as cost-to-connect drops and penetration rate continue to climb.

Verizon Business may see some impact from customers in the financial services sector in in Q4, as consolidation in the banking sector occurs. However, Stiegle said these customers, while important, do not represent a significant portion of the company's overall revenues. More importantly, Verizon Business is becoming more selective in its deal making, with less discounting expected going forward.

An archived webcast is available on the company's Investor webpage.