Verizon net income rises 3.9%

Verizon Communications Inc., the second-largest U.S. phone company, said Monday that its fourth-quarter profit increased 3.9%, driven by new wireless subscribers. But sales missed estimates as land-line telephone customers defected to cable rivals.

Net income rose to $1.1 billion, or 37 cents a share, from $1 billion, or 35 cents, a year earlier. Quarterly sales rose 5.5% to $23.8 billion, below Wall Street estimates of $24 billion.

Verizon lost 875,000 phone lines in the quarter, an 8.1% drop from a year earlier, compared with an 8% decline in the previous quarter. Verizon Wireless, jointly owned by Verizon and Britain’s Vodafone Group, added 2 million wireless customers.

Verizon, based in New York, eliminated 4,000 jobs in the fourth quarter out of a planned 9,000 cuts.

For the full year, Verizon earned $5.5 billion, or $1.90 a share, down from $6.2 billion, or $2.12, for the previous year. Sales climbed to $93.5 billion from $88.2 billion.

Its shares rose 35 cents to $38.11.