Verizon misses estimates for Q3, but sees 114K FiOS TV adds
| 22 October 2014
US communications giant Verizon has missed Wall Street estimates with its third-quarter earnings, reporting just $0.89 per share, and on its wireline and IPTV side, revenues fell 0.8% compared to the year-ago period.
However, FiOS TV and Internet, which accounted for 76% of the wireline total, grew a healthy 13.4% year-over-year.
Wireline ARPU for the quarter was 10.3% higher, at $125.32 per month, than in the previous year. Also, wireline operating margin increased to 2.3% from 1.5% in the year-ago period.
Encouragingly, it added 162,000 FiOS Internet and 114,000 FiOS Video net additions.
Overall corporate operating revenues were $31.6 billion, up 0.3% over the previous quarter and 4.3% higher than the year-ago period. But the FiOS good news wasn't enough for some.
"While I had not expected VZ to miss consensus estimates, I am a little disappointed in Verizon's results, especially as estimates had dropped $0.04, from $0.94, in the last 60 days," said Anthony Ruben, of Inflection Point Consulting.
He added: "I am a little disappointed in the sequential quarter deterioration, especially as the period only had 12 days of the new iPhone (prime time for poaching customers). Wireline results, though positive, are largely a non-issue for investors."