Verizon earnings struggle, but investors positive on Yahoo

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.

Yesterday, Yahoo agreed to be taken over by Verizon in a $4.8 billion sale, expanding the telco’s media portfolio and its ad revenue pool in the process. Big Red acquired AOL last year.

In New York, shares of Verizon are down about 2 percent in late-day trading.

Source: Verizon

Share This Post

Watch the Latest Pocketnow Videos

About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.