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.