Verizon releases a poor Q4 earnings report, sees no growth in wireless services until 2018

Verizon releases a poor Q4 earnings report, sees no growth in wireless services until 2018
Verizon reported its fourth quarter results today, and they were below what Wall Street was expecting. The 591,000 net postpaid subscribers added from July to the end of September fell short of the 715,000 predicted by Wells Fargo. And the 1.1% postpaid churn reported by the nation's largest carrier was 3 basis points higher than the 1.07% churn rate forecasted by the banking firm. The company did have 167,000 net phone adds, nearly triple the amount expected by Wells Fargo.

Of the 591,000 postpaid additions from October through December, 196,000 were attributed to tablets which provide lower revenue and profits than handsets. Another 228,000 belong to the "other" category. Strip those away and Verizon's quarter was not that good. Verizon also sees a tough year ahead. While wireless service revenue was in line with Wall Street for the quarter at $16.3 billion, it was off 4.9% on a year-over-year basis. In fact, Verizon sees no year-over-year growth in wireless service revenue until sometime in 2018. Average revenue per user declined by 7.6% year-over-year, which led to the lower than expected revenue for the period.

Yahoo's announced yesterday that the closing of its $4.8 billion acquisition by Verizon has be pushed back to the second quarter, thanks to investigations related to the hacking of Yahoo accounts. In addition, 155 employees working on Big Red's mobile service Go90 have been laid off.


Investors hated the report and dumped their Verizon shares. The stock dropped on Tuesday by 4.4%, or $2.29, to $50.12.

source: TechCrunch, FierceWireless

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17 Comments

1. fyah_king unregistered

Bring back unlimited data.

3. combatmedic870

Posts: 984; Member since: Sep 02, 2015

You barely beat me.

2. combatmedic870

Posts: 984; Member since: Sep 02, 2015

Well....I think it's time for the unlimited plan to come back. 25gb full lte the rest throttled. I'd go back to them. People want unlimited.

4. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Good to hear. Ok people. Let's get together and show these carriers that greed simply won't work. Leave this crooked carrier. AT&T? Your next.

5. fyah_king unregistered

At&t is already losing customers.

6. jm405

Posts: 82; Member since: Mar 22, 2016

Well they wanted all the poor people to leave them so this is what they get. I do miss Verizon though but they raised my rates and took away so many things that it was a no brainer to leave even if it was for a "good enough" carrier.

7. NJSteve

Posts: 42; Member since: Aug 25, 2015

saturation, morons...

8. NewroticSlob

Posts: 182; Member since: May 09, 2013

For edification purposes, could someone explain the need for unlimited data? I'm neither for/against it, I just can't see how someone can use 25gb/mo. I mean, with wifi being available in many areas, it just baffles me a bit. I don't have wifi at work and can't use more than 2-3gb/mo. A breakdown of where your data is usage is most used would be cool!

9. Swiff

Posts: 29; Member since: Oct 05, 2015

Streaming Netflix and YouTube mostly. I don't use that much data I use about 10gb browsing streaming mostly when commuting to work.

10. tedkord

Posts: 17356; Member since: Jun 17, 2009

Netflix, Youtube, Amazon Prime Video, Tivo, Xfinity on Demand. I don't always go over 20gb, but do sometimes. Three days in to the current cycle, and I'm at just under 2GB.

13. combatmedic870

Posts: 984; Member since: Sep 02, 2015

Yep, mainly for commuting. I usually hit 15-20gb a month. Never hit above 22gb so far in the last 3 years on tmobile.

16. snatchlax17

Posts: 52; Member since: Dec 07, 2010

I have unlimited Verizon. I typically use 5-10 GB depending on the month. Rarely but I have gotten in the 20s especially if I stream a lot of Netflix/Youtube/etc. I use it mostly to listen to podcasts/stream music. Sometimes in the morning at the gym, or all day depending. The ability to not worry about if my phone will have any data left/a wifi network nearby is a plus. Not to mention that Verizon's data is more secure than public wifi. Some people also don't live in areas that have wifi everywhere and all they have is their cellular service, although I am not one of those people I like the piece of mind.

17. NewroticSlob

Posts: 182; Member since: May 09, 2013

Thanks for the feedback! I forget about people who commute via public transit or other forms of transportation on a daily basis. I live in a fairly rural area and have to drive. Again, thanks!

11. patroni0

Posts: 56; Member since: Mar 26, 2012

I am beyond glad to hear this, their greedy ways will work no more.

12. michaelny2001

Posts: 328; Member since: Aug 01, 2012

they won't see growth ever. when companies like Tmobile give taxes and fees included Verizon loses. ATT gives cricket the same thing. People are not wasting money anymore. Not since the 2007 crash. Everyubody is being a little smarter, which is good. Enough billions in profit, tens of millions is good enough.

14. WakaFlakaD

Posts: 576; Member since: Apr 30, 2011

5GB at $55 dollars with AutoPay PLUS WITH SAFETY MODE ON TO AVOID OVERAGES.... NO THANKS! T-Mobile - *28GB data cap "unlimited" at $70 with AutoPay OR %75 without AutoPay PLUS TAXES AND FEES ARE INCLUDED WITH NO OVERAGES. THAT'S THE WAY TO GO! *during congestion the top 3% of data users (>28GB/mo.) may notice reduced speeds until next payment cycle. ( I seen a few people using over 40GB a month and no one said their Internet got slow down, so I don't know where the threshold of the top 3% is at)

15. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

I think as the economy continues to go south, and people start to lose their job, phone is the first to be cut. By cut, I mean prepaid plans, cheaper in price.

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