Verizon revenue dips 7.3% due to churn, Capex drops 16%

Verizon 4G networkVerizon Communications posted operating revenue of $29.8 billion (–7.3 percent), net income of $3.6 billion, EBITDA of $11.2 billion, EBITDA margin of 37.7 percent and capital expenditures of $3.1 billion (–16.4 percent) in the first quarter of 2017.

“To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets,” Verizon Communications CEO Lowell McAdam said.

Total telematics revenues were $214 million. IoT revenues, which include telematics, increased approximately 17 percent.

Verizon has lost 307,000 retail-postpaid connections despite launching Unlimited plans. Verizon had a retail postpaid phone net loss of 398,000 prior to the launch in mid-February. After the launch, Verizon added 109,000 retail postpaid phone connections.

Verizon’s retail postpaid connections base grew 1.2 percent to 108.5 million, and retail prepaid connections grew 0.5 percent to 5.4 million.

Wireless revenues of Verizon was $20.9 billion (–5.1 percent) due to decreased overage revenue, lower postpaid customers in the quarter and continued promotional activity.

Verizon said overall traffic on LTE increased about 57 percent.

Verizon plans to launch 11 pre-commercial 5G fixed wireless pilots during the second-quarter of 2017.

Wireline revenue was $7.9 billion (–0.6 percent).

Verizon’s Fios revenues grew 4.7 percent to $2.9 billion — supported revenue growth of 0.7 percent in consumer markets and 2.3 percent in business markets.

Verizon added 35,000 Fios Internet connections and lost 13,000 Fios Video connections. Verizon had 5.7 million (+3.3 percent) Fios Internet connections and 4.7 million (+0.1 percent) Fios Video connections.

Block Institute, the State of Connecticut, Georgetown University, HRC ManorCare and Xplor are the latest clients for Verizon Enterprise Solutions.