Verizon Communications today said its operating revenues reached $30.5 billion (–5.3 percent) in the second quarter of 2016.
Verizon generated revenue of $205 million (+25 percent) from IoT business.
Net income was $0.9 billion in Q2 2016.
Verizon Communications said that a strike by 40,000 employees hurt its results — especially the wireline and fixed broadband business — in the second quarter of 2016.
The earnings report came a day after the New York-based company said it has agreed to buy Yahoo’s internet business for $4.83 billion. It will combine Yahoo with AOL, which it bought last year for $4.4 billion.
Verizon has added 615,000 retail postpaid connections in Q2 2016. Verizon had 113.2 million (+3.3 percent) retail connections in the second quarter of 2016. Verizon has 107.8 million (+3.9 percent) retail postpaid connections. Verizon has 5.4 million prepaid connections.
Verizon Wireless business generated revenues of $21.7 billion (– 4 percent). Service revenues plus device payment plan billings increased 2.3 percent to $19.1 billion.
Verizon has added 462,000 4G smartphones to its postpaid base. Phone additions increased sequentially to 86,000, as the net gain in 4G phones was offset by a net decline in basic and 3G phones. Tablet net adds totaled 356,000 in the quarter.
Verizon has 74.6 million smartphone connections — representing about 86 percent of the total phone base, with 4G devices at 82.5 percent of the retail postpaid connections base.
Verizon said growth in 4G device adoption continues to drive increased data and video usage. Approximately 93 percent of Verizon’s total data traffic is on the LTE network. Overall data traffic on LTE has increased by about 44 percent year over year.
Revenues for Fios fiber-optic-based services grew 3.7 percent to $2.8 billion. The work stoppage impacted Fios connection growth, resulting in net declines of 13,000 Fios internet connections and 41,000 Fios video connections.
Approximately 11 percent of the company’s Fios internet base has opted for speeds of 100 megabits per second or higher. Customer demand remains strong for Custom TV, which represented nearly 40 percent of Fios video sales in second-quarter 2016.
Wireline business reported an operating loss of $463 million and operating margin of negative 5.9 percent.