Verizon Wireless has recently released its latest quarterly report, revealing earnings of 86 cents per share during the final quarter of 2016, on revenues of $32.3 billion. Those numbers, however, fall short of what analysts from Wall Street have projected (earnings of 89 cents per share, revenues of $32.1 billion. Furthermore, the fourth quarter figures also represent a 4.9 percent decrease in revenues, as compared to what the Big Red posted during the same quarter a year before.
On the postpaid front, Verizon gained 591,000 postpaid wireless subscribers during Q4 2016, but then again, failed to meet the 715,000 projected by analysts from Wells Fargo. In terms of customer turnover rate, Verizon’s numbers also did not surpass analyst expectations, with the carrier registering a churn rate for postpaid of 1.1 percent against the 1.07 percent projected by Wells Fargo.
It gets worse for the Big Red on the prepaid front. During the third quarter of last year, Verizon had posted 83,000 retail prepaid net additions, but during Q4 2016, the company recorded 9,000 retail prepaid net losses. Combining that with the 591,000 for postpaid, the carrier finishes the fourth quarter of 2016 with a total of 582,000 retail wireless net additions.
In other metrics, Verizon reported revenues of $532 million in digital media (which is down 5 percent year-over-year) and revenues of $243 in Internet of Things (a growth of 21 percent)
Even though Verizon Wireless reported a lot of declines in several metrics, adding 591,000 connections in postpaid (which remains a priority for the carrier) is still not bad. But it is indeed interesting to note how the number one carrier in America has seen decreased earnings during the fourth quarter, a period normally equated with boosted revenues due to the busy holiday shopping season.