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Verizon Wireless Sees Double-Digit Sales Growth

Reuters
Monday, 10 Mar 2008 | 10:04 AM ET
Verizon
Don Ryan
Verizon

Verizon Wireless expects annual revenue growth in the double-digit percentage range for the next few years, according to Doreen Toben, chief financial officer of majority parent Verizon Communications.

Toben said during an investor Webcast that she also expects margins for earnings before interest, taxes, depreciation and amortization in a range of 43 percent to 45 percent.

"We're very upbeat about the prospects for wireless growth for 2008 and beyond," Toben said.

Verizon Wireless is a venture of Verizon and Vodafone Group .

Toben also sought to alleviate concerns that its new $99.99 unlimited calling plan would hurt Verizon Wireless, the second biggest U.S. mobile service.

The company saw a "great early response" to the plan with many customers on cheaper plans upgrading to the unlimited offer along with customers who spend more than $100 a month on calls. Toben expects the plan to boost results.

"It doesn't take that many more of the $79.99 folks to go up to $99.99 to offset it," said Toben, who also dismissed concerns that the plan would kick off a price war.

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