Verizon reports 20 percent decline in quarterly profit

Adjusted EPS fell to United States dollars 0.95 from USD 1.06 a year ago.

Verizon Communications' quarterly profits fell by almost 20 percent in the first quarter, to $3.5 billion, as the company's wireless business reported a decline of more than 300,000 postpaid phone subscribers, the coveted class of customers on lucrative monthly wireless plans. In last year's second quarter, it had lost 41,000 TV subscribers. In the first quarter, Verizon reported non-GAAP earnings of 95 cents a share, a penny short of Wall Street estimates.

Verizon is expected to close its acquisition of Yahoo later this quarter. A net decline of 307,000 retail postpaid connections in first-quarter 2017 included 289,000 phone losses.

"Our first-quarter results again demonstrated that customers value a high-quality network experience", said CEO Lowell McAdam.

Verizon shed new light on its surprise decision to offer an unlimited data plan in February after years of resisting: it was losing customers in droves. Verizon added 35,000 Fios Internet net connections and lost 13,000 video connections.

Excluding acquisitions and divestments, revenues were down 4.5 percent, as wireless revenue fell 5.1 percent to United States dollars 20.9 billion.

Verizon expects improvement in wireless service revenue this year, with total revenue "fairly consistent" with 2016. "We're executing on strategies to capture future growth and create long-term shareholder value". Net income attributable to the company fell to $3.45 billion (2.69 billion pounds), or $0.84 per share, in the first quarter ended March 31, from $4.31 billion, or $1.06 per share, a year earlier. Prior to this report, the 12-month consensus price target on the company's stock was $51.39.



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