Verizon sees healthy FiOS video growth in Q3


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Michelle Clancy

| 21 October 2015





As it ramps up with the Vodafone wireless buyout now firmly in its rearview mirror, Verizon has reported 42,000 FiOS IPTV subscribers during the third quarter.


The US comms giant made 114,000 FiOS Internet net additions as well. Both figures are increases from Q2 2015. Verizon had totals of 6.9 million Internet and 5.8 million video connections at the end of Q3, representing year-over-year increases of 7.2% and 5%, respectively.

Total operating revenues in Q3 2015 were $33.2 billion, a 5% increase compared with the same quarter of 2014. Year-to-date consolidated revenue growth was 3.3%, after adjusting for the inclusion of AOL in Q3 and the sale of the public sector business in 2014 (non-GAAP). On this same basis, Verizon continues to expect consolidated revenue growth of at least 3% for full-year 2015.

FiOS Internet penetration (subscribers as percentage of potential subscribers) was 41.7% at the end of Q3 2015, compared with 40.6% at the end of the same quarter in 2014. In the same periods, FiOS video penetration was 35.6%, compared with 35.5%.

Overall, FiOS contributed to Q3 2015 earnings of 99 cents per share, or $1.04 per share on an adjusted basis (non-GAAP).

"Verizon continues to grow earnings by delivering network reliability and superior value that continues to attract new customers," said Verizon chairman and CEO Lowell McAdam. "FiOS customer growth also improved from the previous quarter. We expect future revenue growth from mobile over-the-top video, including digital advertising and the Internet of Things."

Verizon's acquisition of AOL Inc in June is playing a key role in this future growth strategy. And in September Verizon launched go90, a mobile-first social video entertainment platform.