Verizon showed another drop in results for the first quarter, but said it started to see signs of improvement after it launched its new unlimited mobile offer during the quarter. Revenues fell 7.3 percent year-on-year to USD 29.8 billion.
Excluding acquisitions and divestments, revenues were down 4.5 percent, as wireless revenue fell 5.1 percent to USD 20.9 billion. Wireless adjusted EBITDA declined 7.5 percent to USD 9.4 billion, and the margin dropped to 45.1 percent from 46.2 a year ago.
Verizon said it lost a net 307,000 retail postpaid connections in the quarter, including 289,000 phone losses, compared to a gain of 640,000 in the same period a year earlier. Prior to the launch in mid-February of Verizon Unlimited, the net loss was 398,000 postpaid customers, whereas in the rest of the quarter the company had a net gain of 109,000. Its total retail postpaid base was still up 1.2 percent year over year to 108.5 million, and retail prepaid connections grew 0.5 percent over the same period to 5.4 million.
The US operator reported total adjusted EBITDA at USD 11.1 billion for the quarter, giving a margin of 37.3 percent. Adjusted EPS fell to USD 0.95 from USD 1.06 a year ago.
Free cash flow turned to a negative USD 1.4 billion, compared to a positive USD 4.1 billion a year ago, due to a one-time pension contribution of USD 3.4 billion. Capex was down slightly year-on-year, at USD 3.1 billion, while LTE traffic continued to grow strongly, up 57 percent from a year ago.
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