Wall Street analysts had expected a net addition of over 200,000.
Advertisement
Verizon declined to comment further. The cell phone carrier reported $1.01 EPS for the quarter, beating the consensus estimate of $0.99 by $0.02.
The steep decline in customer growth appears to have come at the hands of smaller rivals T-Mobile US and Sprint, which during the quarter introduced aggressive “unlimited” service offerings backed by heavy promotions.
Binge On adds weight to the service proposition of T-Mobile, the fastest growing wireless carrier by subscriber among the top four in the US.
“I think we have a reasonable basis to believe right now that the impact is material”, Silliman said.
06/07/2016 – Verizon Communications Inc. had its “hold” rating reiterated by analysts at Jefferies. Verizon has said it has received only limited information about the incident and is waiting for a full disclosure when the investigation concludes.
(NYSE:VZ). Howard Capital Management has invested 0.08% of its portfolio in Verizon Communications Inc.
The drop in handset costs helped Verizon increase the wireless EBITDA margin to 44.9 percent from 43.2 a year ago, while total EBITDA was flat at Dollars 9.9 billion. This slightly missed and beat analysts’ respetive midpoint estimates of $31.09 billion in revenues and $0.99 for EPS. The decline in operating expense, however, was not sufficient to offset the decline in its operating revenues, based on which the company reported operating income at $3.74 billion that declined as compared to same quarter a year ago. The company now has an average rating of “Hold” and a consensus target price of $54.46. Recovering from the impact of the strike in Q2, Verizon added a net of 90,000 Fios Internet connections and 36,000 Fios Video connections in the third quarter.
The rate of monthly subscriber defections was 1.04 percent, compared with 0.93 percent a year earlier. The company’s net profit margin has achieved the current level of 11.1 percent and possesses 59.4 percent gross margin. Analyst predicted 59.60 percent. On a recent trip to Montana, T-Mobile’s LTE service was excellent through South Dakota where just a few years ago it was nearly non-existent.
With growth slowing in both wireless and fixed line broadband, it makes sense that Verizon has started looking to expand into the advertising and content business via its acquisition of Yahoo and AOL. Verizon’s planned purchase of Yahoo will give it digital web properties and ad technology tools, allowing it to compete with internet giants like Facebook Inc and Alphabet Inc’s Google.
At the end of third-quarter 2016, Verizon Wireless had a total of about 35.8m device payment plan phone connections, representing about 41 per cent of the postpaid phone base.
But TechCrunch, which is owned by Verizon, reports that when Verizon Chief Financial Officer Fran Shammo was asked about the Yahoo breach in an analyst call, he said the lawyers for the two companies had their first call about the “extremely large breach”.
While it adds pieces like Yahoo, Verizon is also shedding businesses it no longer considers a focus.
Advertisement
Verizon Communications (NYSE:VZ) last released its quarterly earnings data on Thursday, October 20th.
