Verizon is hoping for a brighter earnings picture with its acquisition of Yahoo, but until things actualize, man — the struggle was real for the Checkmark this quarter.
First, the numbers: revenue slid 5 percent from a year ago to $30.5 billion. Operating income fell to $4.55 billion, down 42 percent, while the company’s net rake totaled to $702 million, 83 percent worse off than 2015. Verizon blames part of the decline on a seven-week “work stoppage” or a wireline labor strike by the Communications Workers of America.
Focusing on the wireless side, the company added on 585,000 subscribers (gained 615,000 postpaid, lost 30,000 prepaid) and now has 113.2 million subscribers, a 3.3 percent improvement on the year.
Despite issuing several price pressures to its customers in the past several months, churn remains low at 0.94 percent, though a slight tick up from last year’s 0.9 percent. Average service revenue per account in real terms is down 5.6 percent annually, but up 2.6 percent when device installments are considered. 82.5 percent of its active device base is LTE-connected.
In New York, shares of Verizon are down about 2 percent in late-day trading.