Verizon’s Profit Slips as It Integrates MCI

Verizon Communications Inc., the second-largest U.S. telephone company, said first-quarter profit fell 7.1% after it acquired MCI Inc. and expanded its television service.

Net income declined to $1.63 billion, or 56 cents a share, from $1.76 billion, or 63 cents, a year earlier, Verizon said. Revenue rose 25% to $22.7 billion. Excluding some costs, profit was 60 cents a share.

Spending increased to $4.1 billion as Verizon integrated MCI and extended its fiber-optic network to fend off cable companies. Combining services helped the New York-based company reduce local customer losses and add a record 1.7 million wireless subscribers.

The shares slipped 15 cents to $32.64.