Verizon this week announced its earnings for the third quarter, with the company posting net income of $6.6 billion, operating revenue of $32.9 billion, and $1.55 in earnings per share. And, it would seem, once again, Verizon Fios Cable TV is still in a weak position as cord-cutting goes mainstream.
A Strong Quarter
“We had a strong third quarter, delivering on our strategy and growing in multiple areas,” Verizon Chairman and CEO Hans Vestberg said in the earnings release.
“Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications. We are increasing our 2021 guidance, and we continue to expand our 4G LTE and 5G network leadership. We fully expect to have a strong finish to the year as we accelerate deployment of 5G to our customers across the country.”
According to Investors Business Daily, Verizon’s earnings of $1.41 per share were ahead of analyst expectations of $1.37 a share.
“Verizon reported another quarter of strong financial and operating performance,” Verizon Chief Financial Officer Matt Ellis said in the release. “We are seeing strong demand for connectivity across our Consumer and Business segments as our Mix and Match and Business Unlimited value propositions, network quality and unique partnerships are resonating with both new and existing customers. We grew revenue in the quarter, achieved solid cash flow, completed the sale of Verizon Media and increased the dividend for a 15th consecutive year.”
Verizon Fios Cable TV: Subs are Down
At the same time, the company announced that it had lost 68,000 net video subscribers to its Fios service in the third quarter, although Verizon did also gain 98,000 Fios Internet net additions in the same quarter.
Verizon had lost 63,000 Fios video subscribers in the second quarter, leaving it with a total of just under 3.8 million.
The Hollywood Reporter looked at that particular angle of Verizon’s earnings report.
“The telecom giant has been shifting its video focus away from FiOS TV to partnerships with third-party streaming services as it positions itself as a key distribution platform for them. For example, Verizon has a deal with The Walt Disney Co. for the Disney bundle, which gives customers with select Verizon wireless unlimited plans access to Disney streaming services Disney+, Hulu and ESPN+,” the Hollywood trade publication said.
During the quarter, Verizon sold off its Verizon Media unit, which consisted of formerly dominant tech brands like AOL and Yahoo. The unit was acquired by Apollo Global Management, although Verizon continues to hold a 10 percent stake.
Also this week, Verizon announced that the Pixel 6, the latest phone from Google, will come to its wireless network October 28, with preorders already open. The carrier also announced an offer in which customers can “save $700 on a new Pixel if you switch to Verizon and trade in select phones on a qualified Unlimited plan.”
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.