Stocks/Earnings

Verizon Fios Adds 68,000 Internet Subs, 21,000 Video Subs in Q4

Fios sub growth slows as Fios revenues climb 4.4%, to $2.9 billion in period 1/24/2017 7:43 AM Eastern

Fios sub growth slowed slightly in the fourth quarter of 2016, as Verizon added 68,000 Fios Internet subs and 21,000 Fios video customers in the period.

 

That compared to Fios video adds of 25,000 and Fios Internet adds of 82,000 in the year-ago quarter. Verizon said that customer demand for its slimmed-down Custom TV option remained strong in the period, and noted that it began to offer Fios services in Boston in Q4.

 

RELATED: Verizon Boots Up Fios Service in Boston

 

For the full year, Verizon added 59,000 Fios video subs and 235,000 Fios Internet subs, down from 182,000 video subs and 350,000 video subs for all of 2015.

 

Verizon ended 2016 with 5.7 million Fios Internet connections and 4.7 million Fios video connections, and also ended the year with Fios video penetration of 34.3%, and Fios Internet penetration of 40.4%.

 

The company also tacked on 13,000 Fios digital voice residential connections in Q4, versus additions of 43,000 in the year-ago period.

 

Total Q4 Fios revenues rose 4.4%, to $2.9 billion, with full-year Fios revenues of $11.2 billion, up 4.6% from the year-ago period.

 

With DSL factored in, Verizon lost 68,000 high-speed Internet subs in Q4, and 282,000 for all of 2016. Total wireline revenues for Q4 dipped 3.1%, to $7.8 billion.

 

Verizon also added 591,000 retail postpaid wireless subs, and ended 2016 with 114.2 million retail wireless connections, up 1.9%.

 

Verizon posted consolidated Q4 earnings of $1.10 per share and net income of $4.6 billion, on revenues of $32.3 billion, up 5.6% compared to the year-ago quarter. Full year revenues were nearly $126 billion, down 4.3%.

 

On the M&A front, Verizon expects to close its acquisition of XO Communications in Q1 2017, and the sale of data centers to Equinix to close in Q2. Regarding the pending acquisition of Yahoo, Verizon “continues to work with Yahoo to assess the impact of data breaches.”

 

RELATED: Yahoo Confirms Another Data Breach, This Time Impacting 1B Accounts

 

“We are positioning Verizon for future growth and continued sustainable shareholder value,” Verizon chairman and CEO Lowell McAdam, said in a statement.  “In the fourth quarter we expanded our customer base in highly competitive wireless and broadband markets. This capped a year in which we delivered solid results and returned value to shareholders, including $9.3 billion in dividends. We enter 2017 with confidence, based on our investments in next-generation networks and the new capabilities we have acquired. Our goal is to continue to earn our customers’ loyalty every day in a rapidly expanding mobile-first digital world.”

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