Verizon hailed the beginning of the 5G mobility era, as the US operator reported a strong set of Q1 2019 results driven largely by its wireless business.
The company reported a consolidated revenue rise of 1.1 per cent from the same period last year, reaching $32.1 billion. The bulk of the figure was generated by its wireless unit, which increased 3.7 per cent to reach $22.7 billion.
Verizon Media was however a sore point, with revenue down 7.2 per cent year over year, hitting $1.8 billion. The company said the decline was down to a drop in desktop advertising, offsetting growth in mobile and native advertising.
Net income in the period also grew substantially, by 10.6 per cent, reaching $5.2 billion from $4.6 billion last year.
Commenting in a statement, Verizon CEO and chairman Hans Vestberg said the company began the year by extending its leadership position in 4G and driving innovation in 5G.
“2019 is shaping up to be an exciting year for Verizon. We are leading the world in the development of new technologies with the launch of our 5G ultra wideband network. Our ambition remains unchanged to provide the most advanced next-generation networks in the world.”
Verizon became one of the world’s first operators to launch mobile 5G services earlier this month, offering speeds of up to 1Gb/s on Motorola’s Z3 smartphone equipped with a clip-on adapter in select areas of Chicago and Minneapolis.
It is aiming to launch mobile 5G in 30 cities this year.
During the period, Verizon said it lost 44,000 net phone subscribers (customers which pay a monthly bill), attributable to fewer promotions and a bigger focus on its 5G network.
In the same period last year, it lost 24,000 postpaid phone subscribers.
It ended the period with 117.9 million wireless connections, down slightly from 118 million at the end of 2018.
The company added it has achieved $3 billion cost savings, in line with a plan announced last year to achieve $10 billion in cash savings by 2021.Subscribe to our daily newsletter Back