Moffett said AT&T should pay close attention to Verizon's troubles. Telecom companies are looking for alternate sources of revenue to grow in a world where most Americans already have cellphones. The biggest example is AT&T acquiring Time Warner earlier this year for $81 billion. In recent years, telecom companies have been acquiring producers of entertainment, news and other content to compete with tech giants such as Amazon, Google and Facebook. "The best one can say is that it was a relatively modest investment for a company of Verizon's size." "They tried to create an alternative revenue stream for wireless, but they have ultimately found it too hard to make advertising into what they had originally hoped," he said. The write-down "puts a period at the end of a short and inconsequential sentence," said Craig Moffett, an analyst at MoffettNathanson. The company blamed weak revenue and earnings from the two businesses, known jointly as Oath, and said the benefits from integrating Yahoo and AOL were less than expected. Now, Verizon is slicing the value of those two businesses in half, taking a $4.6 billion accounting write-down in the fourth quarter. The Motley Fool has a disclosure policy.The wireless company spent more than $4 billion to buy AOL and nearly $5 billion to buy Yahoo as part of an effort to compete with Facebook and Google in a growing market for digital advertising. The Motley Fool recommends Verizon Communications. The Must-Read Trump Quote on Social Securityġ0 Reasons Why I'm Selling All of My Apple StockĮvan Niu, CFA has no position in any of the stocks mentioned.
The $16,728 Social Security Bonus You Cannot Afford to Miss The company's effective tax rate should be 24% to 26%, with cash taxes in 2019 expected to be $2 billion to $3 billion higher than 2018, as Verizon realized certain one-time tax benefits last year.Ĭapital expenditures are forecast to rise as the company invests in 5G, with full-year capital spending expected in the range of $17 billion to $18 billion.ģ Stocks That Are Absurdly Cheap Right Nowĥ Warren Buffett Principles to Remember in a Volatile Stock Market Adjusted earnings per share, which excludes the impact of new lease accounting standards, will be "similar" to 2018. In terms of guidance, Verizon expects full-year 2019 revenue to grow by a low-single-digit percentage on a GAAP basis. Verizon will expand its commercial launch of 5G in 2019. When asked about the company's outlook for Verizon Media revenue, CFO Matt Ellis acknowledged ongoing declines but expressed optimism for 2019, saying, "The assumption, as we head into this year, is that we'll make progress on the revenue line." We are laser focused on delivering customers a best-in-class and game-changing experience on our networks. As we head into 2019 and the 5G era, we're beginning a period of transformational change.
#Verizon yahoo writedown full#
Verizon lost 46,000 Fios video connections due to cord-cutting.Ģ018 was a remarkable year full of 5G firsts, including being first in the world to commercially deploy 5G with our 5G Home product. The company has saved $2.3 billion so far through 2018.įios revenue grew 2.5% when excluding the impact of new revenue recognition standards, thanks in part to adding 54,000 net Fios internet connections. Verizon says it is on track to generate $10 billion in cumulative cash savings by 2021, a goal set in 2017, in order to fund dividend payouts. Verizon Media announced earlier this month that it was laying off 7% of its employees, impacting about 800 workers.Ĭapital expenditures were $2.3 billion in the fourth quarter, bringing full-year capital spending to $16.7 billion. The company recognized a $4.6 billion goodwill impairment charge related to Verizon Media. Verizon Media revenue fell 6% to $2.1 billion, but was up sequentially due to seasonality. On a GAAP basis, Verizon posted net income of just $2 billion, or $0.47 per share, due to the writedown. The company also added 11,000 tablet connections and 556,000 other connected devices, mostly wearables. Verizon reported 1.2 million retail postpaid net additions in the fourth quarter, including 873,000 postpaid smartphone net additions. What happened with Verizon Communications this quarter?
0 kommentar(er)
