Verizon’s third quarter earnings are in and they beat expectations.
Third quarter revenue was $30.9 at 89 cents a share
Consolidated: 89 cents in earnings per share (EPS); adjusted EPS (non-GAAP) of $1.01, excluding non-operational items related to pension re-measurement and severance costs.
Wireless: 442,000 (subscribers) retail postpaid net additions, including 357,000 new 4G LTE smartphones.
Wireline: 90,000 Fios Internet net additions, 36,000 Fios Video net additions.
Consolidated results
Total operating revenues in third-quarter 2016 were $30.9 billion, a 6.7 percent decrease compared with third-quarter 2015. Excluding third-quarter 2015 revenues from since-divested local landline businesses, total operating revenues on a comparable basis (non-GAAP) would have declined 2.9 percent year over year.
Cash flows from operations totaled $4.8 billion in third-quarter 2016. Third-quarter 2016 proceeds of $2.6 billion from asset-backed securitization transactions, which in prior quarters under the off-balance-sheet securitization model would have flowed through cash flow from operations, are reflected in cash flows from financing.
Cash taxes were higher compared to a year ago, due primarily to tax payments of $2.4 billion in third-quarter 2016 related to the gain on sale of wireline operations divested earlier this year. Verizon also made a discretionary pension contribution in third-quarter 2016, bringing full-year pension funding payments to approximately $750 million.
Operating income was $6.5 billion in third-quarter 2016, and operating income margin was 21.1 percent. EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $10.5 billion, and the consolidated EBITDA margin (non-GAAP) was 33.9 percent in third-quarter 2016.
So everyone was watching this because of the Yahoo deal. Verizon had made a bid of $4.8b for Yahoo’s core business in July. Before then they bought AOL for $4.4b and the aim was to boost its communications division. But it looks like that Yahoo acquisition may be in doubt in light of security breaches and other accusations of spying leveled against Yahoo.
Yahoo CEO Marissa Mayer while talking on Yahoo earnings report this week said they were focusing on integration into the Verizon family.
