Earnings

Verizon earnings: Store closures hit hard

Verizon
  • Q1 revenue: $31.6 billion (-1.6% YoY ,-9.2% QoQ, vs. $32.38 billion expected)
  • Q1 earnings: $4.3 billion (-16.9% YoY, -15.9% QoQ, above expectations)
  • Full-year guidance: Verizon withdrew its revenue guidance and reduced its earnings guidance: It now expects earnings growth of between -2% and 2%.

The big number: Verizon lost 525,000 wireless retail postpaid customers last quarter, which it attributed to the shutdown of most of its retail locations.

People are talking: "We will emerge from this crisis stronger, knowing we provided critical connectivity to our customers," said Hans Vestberg.

Opportunities: Verizon's business segment performed better than the consumer segment, citing higher demand in March as companies moved to remote working.

Threats: Verizon was hit particularly hard between March 15 and April 15 as the coronavirus crisis worsened. The company reported a 49% drop in consumer wireless gross adds year-on-year, although "global enterprise, public sector and other" customer additions increased 163% year-on-year.

The power struggle: Verizon has spent recent years trying to position itself as a media business, but that's made it vulnerable to ad revenue declines. Although Verizon reported monthly active users up 22% year-on-year between March 15 and April 15, it said ad and search revenue is declining.

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Photo: Jewel Samad/AFP via Getty Images

Click banner image for more Shopping Week coverage

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Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.
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