After the news that Verizon Communications Inc. (NYSE, Nasdaq: VZ) bought online pioneer Yahoo (NASDAQ: YHOO), the telecoms giant has reported second-quarter earnings reflecting strong profitability and customer retention at Verizon Wireless, a repositioning of the wireline network footprint and cost structure, and scaling of new growth markets in mobile video and the Internet of Things (IoT).
Some of the highlights for the second quarter report include:
• Consolidated: 17 cents in earnings per share (EPS); adjusted EPS (non-GAAP) of 94 cents, excluding significant non-operational items related to pension and benefit re-measurements and early debt redemption and tender offers, and a gain on sale of local landline businesses.
• Wireless: 615,000 retail postpaid net additions; continued low 0.94 percent retail postpaid churn.
• Wireline: 3.7 percent Fios revenue growth; $500 million in anticipated cash savings over the term of new labor contracts.
Second-quarter 2016 EPS of 17 cents compared with $1.04 per share in second-quarter 2015. Adjusted second-quarter 2016 earnings (non-GAAP) of 94 cents per share excluded significant non-operational items related to mark-to-market pension and benefit re-measurements, early debt redemption and tender offers, and a gain from the sale of local landline businesses. Also, earnings were negatively impacted by about 7 cents per share in second-quarter 2016 by a seven-week work stoppage in wireline.
Lowell McAdam, Verizon
Chairman and CEO Lowell McAdam shared:
Verizon’s second quarter shows that the company continues to deliver strong results while evolving operations and advancing a strategy to sustain network leadership, build new ecosystems and deliver the promise of the digital world to customers.”