Mike Snider

USA TODAY

Verizon added 1.5 million new wireless customers during the fourth quarter, helping the telecommunications giant to surpass Wall Street expectations for the period.

The nation's largest wireless provider on Thursday reported adjusted earnings per share of 89 cents per share for its fiscal fourth quarter, beating analyst expectations of 88 cents, according to S&P Capital IQ consensus estimates. Earnings were up 25% over the same period in 2014.

Verizon's reported fourth-quarter revenue of $34.25 billion was up 3.2% from last year, surpassing forecasts of $34.1 billion.

Verizon (VZ) shares rose more than 3% Thursday, closing at $45.87.

Net income of $5.5 billion, compared to a $2.1 billion loss in the same quarter of 2014 as a result of adjustments for pension and other post-employment benefits liabilities, early retirement of debt and other costs.

During the fourth quarter, Verizon added 1.5 million wireless customers, as well as 99,000 FiOS Internet customers and 20,000 FiOS video customers.

Over the year, Verizon added 4.5 million postpaid customers. These "postpaid” customers pay their bills at the end of the month and represent the most valuable segment of the market. The Q4 additions increased Verizon's customer base to 106.5 million postpaid connections, up 4.4% over 2014. In total, Verizon grew to 112.1 million wireless customers, up 3.6% over 2014.

Wireless revenue rose 1.2% to $23.7 billion in the fourth quarter. However, the average revenue from postpaid wireless customers for the year fell 4.5% to $152.63. Wireline revenues, driven by FiOS, rose 2.6% to $4.1 billion.

The decline in average spending per wireless consumer is "concerning," said MoffettNathanson Research in a note released after Verizon delivered its earnings Thursday. But, "all in all, Verizon’s wireless business is still quite healthy," they said.

Competitor T-Mobile continues to cut into Verizon's subscriber base, but Verizon continues to "hold their own versus AT&T and Sprint," said the investment firm, which has a Buy recommendation for Verizon with a target price of $54.

To that point, Verizon last month began an aggressive promotional campaign to win over customers on competing networks. Those who switched to a new Verizon 4G LTE device would get up to $650 to use to pay off their current device and contract.

In June, Verizon acquired AOL for $4 billion, a deal that helped the company launch its free Go90 mobile video service in October. Earlier in the year, Verizon also began offering a lower-priced Custom TV programming bundle for broadband customers to address the cord-cutting trend — and to entice those who haven't become pay-TV customers.

“Verizon embraced transformational change in 2015, and in 2016 the company has a huge opportunity to drive a new era of growth in our industry,” CEO Lowell McAdam said in a statement.

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