Verizon looking to mobile video and IoT for growth, as wireless drives Q3 - Mobile World Live

Verizon looking to mobile video and IoT for growth, as wireless drives Q3

20 OCT 2015

Verizon Communications reported solid results for the third quarter of 2015, which it said was “fuelled by wireless” alongside growth in its fibre-optic connections and “continued customer loyalty”.

“We expect future revenue growth from mobile over-the-top video, including digital advertising and the Internet of Things,” Lowell McAdam, the operator’s chairman and CEO, said.

Verizon’s acquisition of AOL earlier this year is “playing a key role in this future growth strategy”, the company said in a statement.

And in September, it launched its go90 service, described as a “differentiated, mobile-first social entertainment platform”.

The company reported a net income of $4 billion, up 9.3 per cent year-on-year from $3.7 billion, on revenue of $33.2 billion, up 5 per cent from $31.6 billion.

The current quarter includes results from AOL: excluding this, revenue growth would have been 3.1 per cent.

For its Wireless unit, the company reported EBITDA of $9.9 billion, up 9.2 per cent from $9.1 billion, on revenue of $23 billion, up 5.4 per cent from $21.8 billion. But service revenue dropped by 4.1 per cent to $17.6 billion, being more than offset by equipment revenue growth as more customers chose to buy new devices on instalment plans.

New revenue streams from IoT totalled approximately $175 million, and in August the operator launched Hum, a telematics service with “an addressable market of 150 million vehicles in the US”.

The company ended the period with 110.8 million retail connections, up 4.3 per cent year-on-year. This included 105 million retail contract connections, of which more than 76 per cent are 4G devices.

Verizon’s Wireline EBTIDA was essentially flat at $2.2 billion, on operating revenue which decreased by 2.3 per cent to $9.4 billion. It said that revenue from its Fios consumer fibre unit were $4 billion, up 2.8 per cent year-on-year.

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Steve Costello

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