By Chelsey Dulaney 
 

Verizon Communications Inc. posted a heavy loss in its fourth quarter on pension and severance costs, though strength in tablets were again a driver of growth for the company.

Excluding one-time items, Verizon's earnings were in-line with Wall Street expectations.

Verizon is the first telecom company to report results for the fourth quarter, which analysts have said will be challenging because of a holiday season of aggressive price promotions.

Verizon has leaned heavily on tablets for wireless subscriber growth. The carrier has pushed subscribers to add tablets and has even given them away for free when customers add them to their data plan.

In the latest quarter, Verizon said 1.4 million of its 2 million net retail postpaid additions came from tablets. Postpaid phone additions were 672,000.

The company in late February completed its deal to gain full ownership of Verizon Wireless, buying Vodafone Group PLC's 45% stake in the wireless carrier for $130 billion. The acquisition is expected to sharply increase Verizon's profits and will give the company more flexibility in driving Verizon Wireless's future. Verizon has said it is looking to focus on smartphone penetration and connected devices, such as cars and tablets, to boost sales at Verizon Wireless.

Wireless providers are expecting to spend billions of dollars in upcoming years in government-run wireless spectrum auctions, as they seek to beef up their networks. However, Verizon and AT&T Inc., the two largest U.S. wireless providers, may face limits to how much spectrum they are allowed to purchase, as government regulators try to keep smaller providers T-Mobile US Inc. and Sprint Corp. competitive against their larger rivals.

Overall, Verizon posted a loss of $2.23 billion, or 54 cents a share, compared with a profit of $5.07 billion, or $1.76 a share, a year earlier. Excluding items, per-share earnings were 71 cents a share.

Revenue increased 6.8% to $33.2 billion.

Analysts polled by Thomson Reuters were expecting 71 cents a share in earnings and $32.69 billion in revenue.

Write to Chelsey Dulaney at chelsey.dulaney@wsj.com

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