Verizon posts modest growth in Q1 revenue, profit

Nieuws Algemeen Verenigde Staten 21 APR 2016
Verizon posts modest growth in Q1 revenue, profit
Verizon posted USD 32.2 billion of operating revenue in the first quarter, up 0.6 percent on the first quarter of 2015. Excluding AOL, which was not part of the group a year ago, operating revenue declined by 1.5 percent. Verizon said it benefited from new IoT revenue streams, up by around 25 percent to USD 195 million in the first quarter. 

Capital expenditure reached USD 3.4 billion in the period, and the carrier continues to expect USD 17.2-17.7 billion of capex in 2016. At USD 12 billion, EBITDA was consistent with the first quarter of 2015. The EBITDA margin stood at 37.2 percent in the first quarter of this year. Net profit rose by 2.1 percent to USD 4.43 billion (USD 1.06 per share), compared to USD 4.34 billion (USD 1.02) a year ago. 

Verizon Wireless posted USD 22 billion of revenue, down 1.5 percent on the first quarter of 2015, as more of its customers chose unsubsidised device payment plans. The operator said it expects its decline in service revenue to slow throughout the year and to turn positive by the end of 2017. Wireless EBITDA rose by 1.7 percent to USD 10.2 billion, for a 46.2 percent EBITDA margin, compared to 44.8 percent in the first quarter of 2015. 

The operator had 640,000 retail postpaid net additions in the quarter, taking the total to 112.6 million, up 3.7 percent in a year. Within the total, retail postpaid connections rose by 4.4 percent in a year to 107.2 million. 

Growth in 4G device adoption is driving increased data and video usage. Approximately 92 percent of Verizon’s total data traffic was on the LTE network in the first quarter, up by around 50 percent in a year. 

In the wireline segment, Fios fibre services continued to be the driver of revenue growth, representing around 81 percent of USD 4 billion of consumer revenue, up by 0.8 percent on the first quarter of 2015. Wireline operations recorded USD 2.2 billion of EBITDA, up 1.2 percent on the year-earlier quarter. The EBITDA margin rose to 23.4 percent from 22.7 percent.

Verizon added 98,000 net new Fios internet connections and 36,000 net new Fios video connections in the first quarter. It ended the period with 5.86 million Fios video customers, 7.13 million internet customers and 4.8 million digital voice customers. By the end of March, about 78 percent of consumer Fios internet customers subscribed to data speeds of 50 Mbps or higher. 

Verizon said it expects its full-year adjusted earnings to be at a comparable level to 2015, but it foresees pressure on second-quarter earnings due to the ongoing strike over labour contract negotiations.

 

Categories:

Algemeen

Companies:

Verizon Wireless,  Verizon

Countries:

Verenigde Staten

Tags:

Voice services, Data services, Financial figures, Wireline, Wireless, Internet Access

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