Verizon reports wireless and wireline revenues down in third quarter
Flat results but acquisitions mean that total revenues in the third quarter were up, says CEO Lowell McAdam
Verizon has reported flat results in the third quarter compared with the same period last year, with revenues in Verizon Wireless down 2.4% year on year.
But that is better than the 3.9% annual decline that Verizon Wireless reported in the third quarter of 2016. That allowed the company to say “Revenue trends are improving,” when it announced its results today.
Total wireless revenues for the third quarter were $21.6 billion. The whole company produced total consolidated operating revenues of $31.7 billion for the third quarter.
This figure was up 2.5% on the third quarter of 2016, but this year it includes acquisitions such as AOL and Yahoo. “On a comparable basis excluding divestitures and acquisitions … consolidated revenues declined 2.3%,” admitted Verizon.
“Verizon Wireless delivered another quarter of profitable growth combined with strong customer loyalty,” said chairman and CEO Lowell McAdam. “While steadily investing to advance our network leadership and to build the Verizon Intelligent Edge Network, we have also maintained the financial flexibility to increase shareholder dividends for an 11th consecutive year.”
On the wireline side, revenues for Verizon’s fibre service, Fios, grew 4.8%, and consumer Fios revenues grew 4.6% year on year. In third-quarter of 2017, Verizon added a net of 66,000 Fios internet connections and lost a net of 18,000 Fios Video connections, “reflecting the ongoing shift from traditional linear video to over-the-top offerings”, said the company.
However overall wireline operating income was $65 million in the quarter, compared with $73 million in third-quarter 2016.