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Verizon Q1 misses on sales of $32.2B, meets on EPS of $1.06, mum on Yahoo bid

TechCrunch TechCrunch 21/04/2016 Ingrid Lunden

No word on Yahoo from one of the strong contenders to buy the troubled Internet giant, but today Verizon (which now owns TechCrunch) reported its own mixed earnings for Q1. Dragged by worse sales in wireless, the company posted total revenues of $32.2 billion and earnings per share of $1.06. Those sales fell short of analyst expectations of $32.5 billion, while the EPS matched their estimates. Both were up on a year ago.

Notable points:

The company last year made a big move to acquire Aol to boost its advertising and over-the-top media business, and today some of that sems to be coming good: Verizon said that without the inclusion of Aol’s business, its revenues would have actually declined by 1.5%, instead of increasing 0.6%. It noted that Aol had its highest Q1 sales in five years.

Verizon Wireless, the company’s mobile business, continues to be the bigger driver at the company. Verizon had 112.6 million retail connections as of this quarter, up 3.7% year-over-year, and 107.2 million retail postpaid connections, up 4.4% year-over-year. But revenues were only $22.0 billion, down 1.5% versus a year ago, “as more customers continued to choose unsubsidized device payment plans.”

The company predictably is spinning this as a positive: “Verizon’s strong first-quarter results demonstrate our capacity to compete effectively, while executing on our plan of continued network leadership and seeding new growth markets in mobile video and the Internet of Things,” said Chairman and CEO Lowell McAdam in a statement.

The company also reported 640,000 wireless postpaid net adds, while its fast Internet and TV service, Fios, added 98,000 for Internet and 36,000 for video services.

More to come.

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