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Verizon posts loss on hefty charges

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CIOL Bureau
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NEW YORK, USA: Verizon Communications posted a quarterly loss due to hefty severance charges and revenue declined even as its wireless venture added more new monthly-bill paying customers than analysts expected.

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Verizon posted a second-quarter loss of $198 million, or 7 cents per share, compared with a profit of $1.48 billion, or 52 cents per share, in the same quarter the year before.

The company had said in June it expected to take a significant charge from buyout offers to its employees that were aimed at reducing its workforce to cut costs.

Excluding items such as the $2.3 billion charge, its earnings per share would have been 58 cents compared with analyst expectations for 56 cents, according to Thomson Reuters I/B/E/S.

Operating revenue fell 0.3 percent to $26.77 billion from $26.86 billion a year earlier.

Verizon Wireless, its venture with Vodafone Group Plc added 665,000 postpaid mobile subscribers compared with the average expectation for 570,000 from eight analysts contacted by Reuters.

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