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Verizon beats revenue estimates on lockdown boost to wireless services

Credit: REUTERS/BRENDAN MCDERMID

Verizon Communications Inc on Friday beat estimates for second-quarter revenue on strong demand for its phone and internet services as coronavirus-induced lockdowns prompted a rapid shift to remote working and learning.

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July 24 (Reuters) - Verizon Communications Inc on Friday beat estimates for second-quarter revenue on strong demand for its phone and internet services as coronavirus-induced lockdowns prompted a rapid shift to remote working and learning.

Although stay-at-home orders cut down store visits, limiting new sign-ups in a quarter that was almost entirely spent under lockdown rules, a pick up in demand for internet services helped the company add more phone subscribers who pay a monthly bill.

In the second quarter, Verizon added 173,000 postpaid phone customers, above analysts' estimates of 61,200 additions, according to research firm FactSet.

Total operating revenue fell 5.1% to $30.4 billion but beat the analysts’ average estimate of $29.93 billion, according to IBES data from Refinitiv. [ nGNX1sZVzg]

The company said that the fall in revenue was due to a decline in wireless equipment revenue in the quarter, hurt by lockdown-led store closures.

Revenue in Verizon's media unit, which includes Yahoo, HuffPost and TechCrunch, declined 24.5% to $1.4 billion from a year earlier as companies cut down on advertising to rein in expenses. (Reporting by Neha Malara; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty) ((Neha.Malara@thomsonreuters.com)) Keywords: VERIZON RESULTS/ (UPDATE 1)

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