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Verizon Beats Analysts’ Expectations for Q3 2017

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Verizon Wireless recently released its third quarter results, which showed the mobile operator soundly meeting and exceeding estimates set by various analysts. For Q3 2017, the Big Red registered a service revenue of $15.8 billion, beating the $15.7 billion projected by Wells Fargo. The biggest carrier in the United States also managed to record retail postpaid phone net additions of 274,000 (which easily surpassed the 170,000 predicted by analysts), as well as report overall postpaid net additions of 603,000 (comfortably outpacing the 438,000 projected by StreetAccount).

Apart from reporting significant postpaid phone additions, Verizon Wireless also gained 91,000 tablet net additions and 238,000 net additions of wearables and other connected devices. During the third quarter of last year, the company suffered a loss of 107,000 postpaid accounts, but the carrier has since rebounded a year later by acquiring 30,000 postpaid accounts. When it came to prepaid, Verizon gained 139,000 prepaid net additions.

In terms of customer turnover, the Big Red registered a retail postpaid churn of 0.75 percent for Q3 2017. This marks the tenth consecutive quarter in which it has reported a retail postpaid churn of not more than 0.9 percent.

Verizon has also reported that for Q3 2017, an estimated 78 percent of its postpaid phone base is on unsubsidized service pricing plans. During the same quarter last year, that figure was only at 60 percent. As for the percentage of phone activations on device payment plans, it has remained steady at 77 percent, which is the same as the percentage reported for Q2 2017.

Earnings-wise, the third quarter of the year saw Verizon post an earnings before interest, tax, depreciation and amortization (EBITDA) figure of $9.97 billion for its wireless business, exceeding the $9.67 billion estimated by Wall Street. The company’s third quarter service margin of 62.9 percent not only outpaced analysts’ projections, but also marked the second consecutive quarter in which Verizon held the highest service margin among all US-based wireless service providers.


Source: Fierce Wireless

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10 comments:

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  1. Not surprising.

    With T-mobile snd Sprint still lacking broad coverage, and AT&T being dragged down by both congestion as well as its own throttling practices, Verizon and Big Slim stand to be the biggest winners in a market where customers expect a certain level of stability and reliability.

    ReplyDelete
    Replies
    1. Big Slime (Trac brands) is NOT a MNO like AT&T, Sprint, T-Mobile & Verizon Wireless or even US Cellular. They are all MVNOs like all the rest in USA. All run on one of the MNOs network.

      Delete
    2. Actually AT&T is still more profitable than Slim (America Movil). AT&T made 13 billion net profit (after expenses) and America Movil made 582 million net profit. According to financial statements.

      That is a huge difference. 2017 numbers probably aren't all that much higher (have yet to verify). You should do some research before spouting crap though.

      Delete
    3. Yep. It's the network, stupid. Doesn't matter your tag line or your marketing. Tea Mobile and Sprint put together (if allowed) won't have the coverage of Verizon. The only thing even remotely close is Big Blue but they aren't expanding in any significant way outside the major $$ centers.

      Most striking from this report - Verizon actually managed to INCREASE their ARPU - pretty impressive for the "expensive" carrier in a market racing to the bottom price-wise and with the ever-expanding prepaid competition.

      Delete
  2. No 4K on Verizon, but TMO, ATT, Sprint do it in my area. 4K is more important for me than coverage.

    ReplyDelete
  3. Good quarter for Verizon. But their overall wireless market share has been flat for 4 years. 35% in Q3 2013 to 35.74% Q2 2017. (Statistia)
    Verizon and AT&T trade the honors each quarter for the most phone customers lost to rivals. (Fierce). As competing networks continue, fewer people are willing to pay the Vzw price premium for phone service (Wash. Post, Fortune, Fierce, several industry experts).
    This quarter may be better than expected, but one good quarter is not a trend. Verizon can't raise prices to grow revenue and profit because many subscribers are price-sensitive, and price is the #1 complaint of Vzw (and AT&T) customers. It's also one of the biggest reason people leave.

    ReplyDelete
  4. Yes it's the network... People want to use their phones, and they want to be able to use them when they leave their houses.

    Verizon and ATT are right now the only two networks that serve the needs of most people to be able to do this. T-Mobile says that they will be at this point in a couple of years. Sprint is nowhere near this, and they are at a standstill.

    Until T-Mobile joins them, only these two networks provide the network that meets the needs of most users in America.

    ReplyDelete
  5. Verizon gains 139,000 prepaid subscribers?
    Would a large % of this come from TracFone users on Verizon network?
    TracFone's quarterly report should be upcoming since July 19th.

    ReplyDelete
    Replies
    1. I always understood that Tracfone made up the lion's share of Verizon prepaid.

      Delete
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