Verizon compares its profitability to Tiger Woods

By Dow Jones Newswires
Posted Aug. 11, 2010 at 10:31 a.m.

Verizon Communications Inc. Chief Financial Officer John Killian compared the wireless arm’s lead in profitability to Tiger Wood’s dominance on the golf course.

“We will maintain the Tiger Woods position on top of the world in terms of profitability,” Killian told analysts during an investor conference on Wednesday.

In reference to Woods’ recent struggles, Killian said that people keep wanting to chip away at the star athlete, much like critics are attempting to chip away at Verizon Wireless’s lead in profitability. Instead, the business is widening its lead, he said.

“We feel good about the prospects of the business,” Killian said.

Verizon Wireless, which is jointly owned by Verizon and Vodafone Group PLC, can continue to grow through improving its base of smartphone users as well as its move to a fourth-generation, or 4G, network, he said.

The company is on track to commercially launch the 4G network in the fourth quarter, Killian said. Initially, the service will work with USB laptop cards, but he said smartphones will become available in the first half of next year.

On Verizon’s proposed policy framework with Google Inc., Killian said he expects the proposal to build momentum with other industry participants. He believes the framework allows companies to continue to innovate and invest.

Killian said he didn’t have any insight into what the Federal Communications Commission thought about the proposal.

On Verizon Wireless, Killian said Verizon isn’t in a position to seriously consider paying a dividend to itself and Vodafone. He had previously said that the company would consider paying a dividend by 2012.

On FiOS, Killian said the penetration rate of its television and Internet service is “north of 40 percent” in its most mature markets.

Verizon Communication shares recently fell 1 percent to $29.72.

Read more about the topics in this post: , ,
 

Companies in this article

Google

Read more about this company »

Verizon

Read more about this company »

Comments are closed.