Verizon's Profits Increase 31% Thanks To WirelessVerizon's Profits Increase 31% Thanks To Wireless

Verizon on Monday reported an increase in its third-quarter earnings thanks to steady growth in its wireless division.

The second-largest U.S. telephone company reported its net income rose 31% to $1.6 billion, and sales increased 4.1% to $24.8 billion. The company saw increases in its wireless subscribers, enterprise services, and fiber-optic network continue to grow.

"Verizon again reported solid revenue, earnings, and cash flow growth this quarter," said CEO Ivan Seidenberg in a statement. "The strategic investments we made over the past few years continue to drive growth in wireless, enterprise, broadband, and video."

The company's wireless division saw double-digit revenue growth to $12.7 billion, up 12.5% from the same period last year. Verizon Wireless added 2.1 million wireless subscribers in the quarter, with 630,000 coming from its acquisition of Rural Cellular. Overall, the company reported 68.8 million retail wireless customers, and that figure is expected to swell to about 80 million users when the acquisition of Alltel is completed.

The average revenue per user also grew, as wireless data revenue rose to $2.8 billion, a 42.5% increase year over year. The company expanded its 3G network and more than 43 million users had 3G-capable devices, the company said.

Verizon Business, the company's enterprise-focused endeavor, had total revenue of $5.4 billion, a 1.2% increase from last year. This was the eighth consecutive quarter this division reported revenue growth, Verizon said.

The company's fiber-optic services also expanded, as it added 233,000 new FiOS TV customers. It also added 225,000 new FiOS Internet customers, giving it a total of 2.2 million customers using the company's fiber-optic Internet connection.