Verizon Wireless has released its third quarter financial and operating results that show some relative financial stability.
Furthermore, there are continued customer growth challenges as captured by the results. In the past quarter, Verizon said it had added up to 1.2 million direct net connections which was a positive sign for their growth. However, it went down by 20% compared to the same time in 2014.
There was also a 15% drop in their postpaid performance but attributed tablets as one of the main growth points for the company. There were 818,000 net connection additions from tablets in the quarter and the company hopes to double that by next year.
694,000 net additions came from Smartphones which have been their traditional way of growth. Customer growth has also gone down compared to 2014 with the latest results showing a 26% fall. Verizon attributed that to less gross customer additions and it was evidenced by the fact that consumer spending went down by up to 5.5%.
The average revenue per postpaid account was reported to have fallen to $152.38 every month which is worrying for a reputable company like Verizon. RCR Wireless News portal carried out a detailed analysis of the results where they pointed out that the company must act quickly to fix the problem. They touched on both the positives and negatives of the results which their customers could understand easily.
In one of their reviews, Dan Meyer wrote; “Verizon Communications management continues to remain averse towards device leasing programs recently launched by some rivals, citing a risk of residuals impacting its balance sheet and growing Smartphone penetration in China where it claims many of the refurbished devices end up.” He noted that expenses increased a smaller percentage, hitting $15.3 billion for the quarter, helping to push a 10.3% increase in operating income to $7.7 billion.
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