AABA Altaba Inc

By Anne Steele 

Verizon Communications Inc. posted another decline in revenue amid a continued drop-off in subscriber additions as a pricing war continues to drag on the wireless provider's results.

It was the third consecutive quarterly decline for the top line after six years of growth, and Verizon shares lost 2% premarket to $51.39.

Verizon, which has been chasing revenue growth through acquisitions, in July said it would buy Yahoo Inc.'s Web assets for $4.83 billion in cash, ending a drawn-out process for the beleaguered internet company. For New York-based Verizon, the deal adds another piece to the digital media and advertising empire it is trying to build.

But on Monday Yahoo said the deal will close a quarter later than expected, as both sides grapple with the fallout of two massive data breaches disclosed by the internet company. The hacks, announced in September and December, have cast a shadow over the future of Verizon's agreement to buy Yahoo's core internet business.

On Tuesday, Verizon said it "continues to work with Yahoo to assess the impact of data breaches."

"We enter 2017 with confidence, based on our investments in next-generation networks and the new capabilities we have acquired," said Chief Executive Lowell McAdam.

During the December period, Verizon said it added 591,000 net retail postpaid wireless subscribers, a 61% drop from the prior-year period. Postpaid churn, or the rate at which customers canceled service, rose 14 basis points to 1.10% from a year ago.

Revenue slipped 5.6% to $32.34 billion, edging in above estimates for $32.11 billion, according to Thomson Reuters.

In all, Verizon posted a profit of $4.5 billion, or $1.10 a share, down from $5.39 billion, or $1.32 a share, a year earlier.

Excluding certain items related to pension and benefits adjustments and severance-related costs, adjusted earnings were 86 cents a share, below analysts' expectations for 89 cents a share.

Verizon's Fios TV and high-speed internet business, which had been lagging, continued to recover. Verizon added a net 68,000 internet customers in the quarter and gained 21,000 video customers.

Verizon has been shifting its wireless customers to noncontract plans that have a cheaper monthly service rate but require customers to pay full price for their device, usually in installments.

The percentage of phone activations on installment plans rose to 77% from 70% in the third quarter and 67% a year earlier. Verizon said it expects that rate to remain consistent in the first quarter.

Verizon, which has been facing rising competition, had warned that earnings could plateau in 2016 as it works through changes it has made to keep its wireless plans in line with rivals. On Tuesday, the company said it expected its 2017 earnings to be flat with 2016.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

January 24, 2017 08:32 ET (13:32 GMT)

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