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21 April 2017
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.
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.
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
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
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;
Verizon quarterly results,