Verizon 2016 revenues drop 4.3% to USD126bn; net income plummets 25.9%

25 Jan 2017

US telecoms giant Verizon Communications has reported total operating revenues of USD125.98 billion for the twelve months ended 31 December 2016, representing a 4.3% decrease year-on-year. Operating income for the period under review dropped to USD27.059 billion, down 18.2% on an annualised basis, with Verizon reporting net income of USD13.608 billion for full year 2016, down 25.9% y-o-y. Discussing the results, chairman and CEO Lowell McAdam commented: ‘We are positioning Verizon for future growth and continued sustainable shareholder value … We enter 2017 with confidence, based on our investments in next-generation networks and the new capabilities we have acquired.’

In operational terms, mobile unit Verizon Wireless reported 114.243 million retail connections, up 1.9% on an annualised basis. Of this figure, the bulk – 108.796 million – were post-paid accounts. In its fixed line business, Verizon reported that its total number of voice connections dropped 7.3% y-o-y to 13.939 million, while broadband connections dropped 0.7%, to 7.038 million. Of the latter figure, 5.653 million were ‘Fios’-branded fibre subscriptions, up 4.3% on a yearly basis. Finally, the firm’s IPTV user base climbed 1.3%, to reach 4.694 million at end-2016.

Regarding pending transactions, Verizon expects its acquisition of XO Communications to close in the first quarter of 2017, and its sale of data centres in North and South America, to Equinix, to close in 2Q17. Regarding the Yahoo acquisition, Verizon continues to work with Yahoo to assess the impact of data breaches.

United States, Verizon Communications, Verizon Wireless