Verizon grows its strong customer base profitably in 4Q – Verizon (Jan 24, 2017)
Verizon puts a brave spin on its results in its headline, but there’s a lot of detail beneath the headline which isn’t quite so positive. Having started the transition to device installment plans in wireless later than its peers, it’s still seeing declining service revenues and now expects to see that trend continue into 2018 rather than 2017 as previously forecast. Its postpaid phone net adds continue to be well down over last year’s Q4 results, and adds over 2016 as a whole were pretty anemic. Tablets are another drag on the company’s overall results as it continues to see customers who bought cheap tablets two years ago turn off their service as they exit their contractual lockups. On the wireline side, penetration of Fios TV continues to fall each quarter, while Fios broadband penetration holds up a little better. Verizon continues to be the largest carrier in the US, and a very profitable one, but as smaller competitors become more aggressive on price, there are questions about whether Verizon can maintain its margins and grow at the same time – recent evidence suggests that’ll be tough.
via Verizon
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