Verizon expects ‘strong momentum’ of Q1 to continue this year
Telecoms company says smartphone and tablet losses offset by new connected devices
Results included a $249m charge related to an early repayment of debt and $107 million of acquisition costs related to its Oath unit which houses the Yahoo and AOL businesses. Photograph: Brendan McDermid/Reuters
Verizon beat expectations in the first quarter of the year with revenue growing 6.6 per cent to $31.8 billion (€26 billion).
The telecoms company said it lost 24,000 smartphone and 75,000 tablet subscriptions during the quarter but that was offset by 359,000 new connected devices, mostly in wearable technology. In fixed-line, it added 66,000 new internet users but lost 22,000 video users due to the cord-cutting trend.
Net income was $4.7 billion while earnings per share reached $1.11, up from 84 cents in the first quarter of 2017, which was in line with analyst expectations. That included a 21 cent boost related to US tax reform. The results included a $249 million charge related to an early repayment of debt and $107 million of acquisition costs related to its Oath unit which houses the Yahoo and AOL businesses.
Shares in Verizon added 2.5 per cent to $49.91 in early trade.
Revenue at Oath dropped 13 per cent to $1.9 billion from the fourth quarter due to lower advertising display revenue, which Verizon said was seasonal. Conversely, its telematics and internet of things business Verizon Connect grew 13 per cent.
Lowell McAdam, chief executive and chairman of Verizon, said: “We began 2018 with strong momentum, and we expect it to continue throughout the year.” – Copyright The Financial Times Limited 2018