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Verizon isn’t done yet as it adds 614k subscribers

Verizon

Verizon has answered the challenge of T-Mobile posting an impressive 614,000 retail postpaid net additions.

It isn’t quite matching T-Mobile punch for punch, but it is certainly having a go, and doing a slightly better job than long-time rival AT&T. The additions prove how bribable the US consumers are, flooding back to Verizon on the promise of unlimited data. It also reverses the loss of 289,000 customers from last quarter, a rare decline for the telco in recent years.

“Verizon reignited its growth engine in the quarter, both adding and retaining wireless customers while scaling our media business and continuing to invest in our superior networks,” said CEO Lowell McAdam. “With record customer loyalty and a clean sweep of third-party network quality results, we’re leading the way to provide customers with next-generation broadband, smart cities, telematics, media and Internet of Things services.”

Verizon’s retail postpaid connections base grew 1.2% year over year to 109.1 million, and retail prepaid connections grew 1.4% to 5.4 million, but this is only part of the story. Postpaid churn was 0.94%, with revenues totalling $21.3 billion. Revenues demonstrated a 1.9% decline, however some may argue that regaining the customers from last quarter and moving back into the positive additions would have been a more pressing task.

On the wireline side of things, revenues increased 1.2% to $7.8 billion. It is still the little brother of business units in the Verizon business, however a couple of deals, namely with Corning and Prysmian, has certainly improved prospects to deliver new multiuse fibre services, including 5G.

The good news will most likely keep investors from snapping too much at the heels of the management team for the moment, as it is will be some time before the bets in media will start paying off. With its Oath media venture, the team hope to compete with the likes of Google and Facebook for advertising revenues. It might seem like an ambitious move, however it does now own some useful media properties, such as Huffington Post, Engadget, TechCrunch, Tumblr and Flickr; there is potential, but it’s a long-term bet.

Total revenues for the quarter stood at $ 30.548 billion, a small increase from the previous year, but that doesn’t seem to matter to investors. At the time of writing, Verizon’s share price rose almost 7%. It would appear investors are more concerned with the telcos fighting spirit than financials, and it has shown it is not scared of upstart John Legere and his magenta army.

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