Verizon Communications announced ARPU, revenue, EBITDA, Capex and profit during the third quarter of 2018.
Verizon’s capital expenditures (Capex) touched nearly $12 billion in the first 9 months of 2018. Its Capex focused on investment in 4G LTE network, the launch of 5G Home, significant fiber deployment, and the pre-positioning for additional 5G services.
Verizon’s wireless Capex during the third quarter fell 19.8 percent to $2.127 billion.
Verizon’s wireless Capex for nine months dropped 11.3 percent to $6.144 billion.
Verizon’s wireline Capex during the third quarter rose 28.4 percent to $1.551 billion.
Verizon’s wireline Capex for nine months increased 31 percent to $4.4 billion.
Verizon in a statement said capital spending for 2018 will be in the range of $16.6 billion to $17 billion.
Verizon said its operating revenues rose 2.8 percent to $32.6 billion. Verizon posted net income of $5.1 billion, EBITDA of $12.3 billion and operating income margin of 23.5 percent.
Verizon recorded $136.58 ARPU.
Verizon is on track to deliver against a goal to achieve $10 billion in cumulative cash savings by 2021. This initiative includes zero-based budgeting, which has yielded approximately $1.3 billion of cumulative cash savings.
Verizon’s media business Oath posted 6.9 percent drop in revenue to $1.8 billion. It expects Oath revenues to be relatively flat in the near term and does not expect to meet the previous target of $10 billion in Oath revenues by 2020.
In the telematics business, total Verizon Connect revenues, were $241 million in third-quarter 2018. IoT (Internet of Things) revenues, including Verizon Connect, increased approximately 12 percent.
Verizon said its wireless revenue rose 6.5 percent to $23 billion. Verizon’s wireline revenue fell 3.7 percent to $7.4 billion. Fios revenues rose 1.6 percent to $3 billion.
Verizon said it lost 63,000 Fios video subscribers during the quarter, more than the 18,000 it lost last year, as viewers continue to favor cheaper TV services delivered over the internet, over paying for pricier cable packages.
America’s largest telecom operator added 54,000 Fios internet customers, fewer than the 66,000 Verizon added a year earlier.
The largest U.S. wireless carrier knocked up to $750 off the price of some of Apple’s new phones, launched in September, as it looks to gain more share in a saturated market, Reuters reported.
Verizon added 295,000 phone subscribers who pay a monthly bill during the third quarter.
5G focus
Verizon launched home 5G internet service on Oct. 1 in parts of Houston, Indianapolis, Los Angeles and Sacramento. The next-generation wireless network is expected to bring faster data speeds, which Verizon hopes will help it compete with competitors like cable company Comcast.
It has concentrated on investing in its wireless network rather than deal-making. AT&T bought Time Warner in an $85 billion deal that closed in June, betting it could attract more customers with media content.
