Verizon adds 872,000 smart-phone subscribers

NEW YORK (AP) — Verizon Communications Inc. today said it attracted more than half a million smart-phone subscribers in the latest quarter, showing strength even before it starts selling the iPhone in February.

Verizon Wireless added 872,000 subscribers on contract-based plans, well above analyst expectations of about 650,000. Contract-based subscribers are the most lucrative, and Verizon said three-quarters of the new subscribers bought smart phones, which come with added data fees.

Verizon reported net income of $2.64 billion, or 93 cents per share, for the last three months of 2010. That's up from $617 million, or 22 cents per share, a year ago, but the increase was mainly due to adjustments for the value of the company's retirement plans.

Excluding items, earnings were 54 cents per share, a penny shy of estimates by analysts surveyed by FactSet.