Verizon's Q1 results down on expectations
Verizon's Q1 results show that revenue has dipped by 4.5% on the same period last year
Verizon's results are not what the majority of analysts predicted for the company. They led us to believe that the EPS would be 96 cents per share on revenue of $30.5 billion.
However, Verizon’s first-quarter results reveal adjusted earnings per share of 95 cents on revenue of $29.8 billion which has dipped 4.5% from revenues in the first quarter of 2016.
The results show that there has been a net decline of 307,000 wireless postpaid connections in the past quarter.
To counter this apparent fall Verizon was quick to point out that its recently launched Unlimited Data Plan “has added 109,000 postpaid connections. This still leaves a net decline in connections.
Verizon said in a statement that AOL's revenues also declined by 4% percent on a year-on-year comparison. The company blamed the drop on the growth of what it calls ‘programmatic advertising’ – the use of software to buy advertising as opposed to human beings in agencies placing ads. However, Verizon claims that its Internet of Things revenue is up by 17%.
“Our first-quarter results again demonstrated that customers value a high-quality network experience,” said Verizon CEO Lowell McAdam in the earnings release. “To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fibre network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets. We’re executing on strategies to capture future growth and create long-term shareholder value.”
Verizon’s total consolidated operating revenues in the first-quarter of 2017 were $29.8 billion, a 7.3% decrease compared with first-quarter 2016. On a comparable basis excluding divestitures and acquisitions in the period, consolidated revenue declined approximately 4.5%.
Capital expenditures totalled $3.1 billion in first-quarter 2017, as Verizon carried on spending on its network.
AOL continued its revenue decline with a 4% dip, also driven by a higher percentage of programmatic advertising than anticipated.
Verizon expects full-year 2017 consolidated revenues to be fairly consistent with 2016, with improvement in wireless service revenue and equipment revenue trends; also, full-year 2017 consolidated adjusted EPS trends to be similar to consolidated revenue trends.