Verizon Swings to Profit amid Subscriber Growth

Verizon Communications Inc. said it swung to a fourth-quarter profit, as the phone carrier continues to benefit from rising wireless and FiOS customers.

Verizon posted a profit of $5.07 billion, or $1.76 a share, compared with a year-earlier loss of $4.23 billion, or $1.48 a share. Both quarters included significant nonoperational items, primarily related to the annual actuarial valuation of benefit plans and mark-to-market pension adjustments. Adjusted earnings were 66 cents a share in the latest period, up from 38 cents a share a year ago.

Revenue improved 3.4% to $31.07 billion.

Wall Street analysts on average expected earnings of 65 cents a share and revenue of $31.02 billion, according to Thomson Reuters.

Verizon and AT&T Inc., by far the two biggest wireless carriers, are facing renewed pressure from rivals T-Mobile US Inc. and Sprint Corp. The battle for customers could become even more heated if Sprint goes through with a potential bid for T-Mobile, creating a more viable third-place competitor in the wireless industry.

The larger players aren't sitting still. Verizon late last year reached a $130 billion agreement to buy Vodafone Group PLC's 45% stake in Verizon Wireless and AT&T has made several deals of its own, including the acquisition of prepaid carrier Leap Wireless International Inc. for $1.2 billion plus $2.8 billion in net debt.

Earlier Tuesday, Verizon agreed to buy from Intel Corp. the assets of Intel Media, a business division that develops Cloud TV products and services.

Write to Ben Fox Rubin at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires