Verizon Adds Wireless Customers, Takes Another Hit on Yahoo Unit
January 30 2020 - 8:11AM
Dow Jones News
By Sarah Krouse
Verizon Communications Inc. added lucrative phone customers at a
healthy clip in the final three months of 2019 as it worked to
build out a faster 5G network, but it continued to grapple with its
digital-media business.
The largest U.S. mobile carrier by subscribers added 790,000
postpaid phone connections during the period, compared with 653,000
during the same period year earlier. JPMorgan Chase analysts
expected the carrier to add about 750,000 such connections.
Postpaid customers are considered lucrative for carriers because
those subscribers typically pay up monthly under longer-term
contracts and are less likely to switch providers. Verizon's
largest rival, AT&T Inc., added 229,000 postpaid phone
connections during the period, while T-Mobile US Inc. added one
million such connections.
Verizon took a roughly $200 million charge to write-down the
value of its media business, which is home to Yahoo and AOL web
properties. Revenue within Verizon Media Group was flat
year-over-year at about $2.1 billion as it continued to confront
declining desktop search revenue.
In late 2018 Verizon took a $4.5 billion accounting charge
related to that business and has since tried to focus on e-commerce
and Yahoo-branded news, sports and entertainment services.
Shares of Verizon slipped 2% in premarket trading. The stock has
advanced about 10% over the past year, lagging behind a broader
market rally.
Write to Sarah Krouse at sarah.krouse@wsj.com
(END) Dow Jones Newswires
January 30, 2020 07:56 ET (12:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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