Verizon 3Q profit falls 30 pct on higher costs

Verizon Communications Inc., the nation's second largest phone company, on Monday said third-quarter profit fell nearly 30 percent as higher costs offset an increase in revenue that largely was driven by an acquisition in its wireless business.

The company continues to manage the decline in its wireline business as customers increasingly disconnect their landlines in favor of cell phones.

Revenue from landlines fell by 4.8 percent while wireless services -- including cell phones and data plans -- were up 24.4 percent thanks largely to its January purchase of Alltel Corp.

Verizon, which is based in New York, earned $1.18 billion, or 41 cents per share, in the quarter compared with $1.67 billion, or 59 cents per share, a year ago.

Excluding one-time items, Verizon says it earned 60 cents per share -- a penny above the average estimate of analysts polled by Thomson Reuters.

The third quarter included 19 cents per share in one-time items, including 13 cents related to layoffs. Last year's third quarter had 7 cents in one-time items.

Revenue rose 10 percent to $27.3 billion from $24.75 billion. If Alltel's results were included in last year's third-quarter, Verizon said revenue would have risen by 0.6 percent.

Verizon is second only to AT&T Inc. among U.S. phone companies.

In July, Verizon said it will cut more than 8,000 employee and contractor jobs by the end of the year in its wireline business.

Shares of Verizon fell 25 cents to $28.60 in premarket trading.