U.S. telecom giant, Verizon Communications, announced yesterday that it experienced a 4% growth in profits in the fourth-quarter, as its fast-growing mobile phone business continued to outpace losses in the fixed-line telephone market.

Verizon’s profit for the final three months of 2007 came in at $1.07 billion, or $0.37 per diluted share, up from $1.03 billion ($0.35/share) in the same period a year earlier. Overall revenue, meanwhile, increased 5.5% to $23.8 billion.

Excluding one-time costs and gains, Verizon said it would have earned $0.62 per share, roughly in line with analysts’ estimates.

The ongoing economic slowdown in the United States apparently had little impact on Verizon’s broadband or wireless divisions, but may have contributed to increased losses in landline phone revenue.

The company lost approximately 3 million fixed-line customers, or 10.6% of its residential telephone customer base, in 2007. It also continued to add broadband and IPTV customers, however, keeping the decline in its overall non-wireless revenue to a modest 1.4%.

Verizon shares dipped early in the day on the New York Stock Exchange, but ultimately closed up $0.35, or 0.93%, at $38.11.