US operators Q2 2018: Verizon does a bit better than AT&T
Both giant US operators announced their Q2 2018 numbers recently with Verizon exceeding expectations but AT&T not so much.
Verizon managed higher revenues and profits than analysts were expecting and also beat expectations with 398,000 postpaid smartphone net adds. AT&T’s revenues, meanwhile, were a bit below what the street anticipated, but earnings per share were better so it’s swings and roundabouts at the end of the day, or something like that.
“Verizon is extremely well-positioned for the future,” said soon-to-be-replaced Verizon CEO Lowell McAdam. “Our financial and operating results for the first half of 2018 were strong, as evidenced by service revenue, earnings and operating cash flow growth delivered in a highly competitive marketplace.”
“It was an exciting quarter for AT&T as we completed the acquisition of Time Warner on June 14 and created a modern media company built around premium content, 170 million direct-to-customer relationships, advertising technology and high-speed networks,” said Randall Stephenson, AT&T CEO.
“Time Warner joins us coming off an impressive second-quarter. Turner turned in solid subscription and advertising revenue growth, Warner Bros. is in high gear with a record number of series in production, and HBO delivered strong subscriber revenue growth.
“Since we closed the Time Warner deal, we’ve also announced an agreement to acquire ad-tech leader AppNexus, which will be an important step to strengthen our leadership in advanced TV advertising. Our goal is to reshape the way media and entertainment work for consumers, and you will see us continue to do exactly that.”
The respective shares prices initially went in opposite directions, with Verizon up and AT&T down, but then everyone seemed to take the numbers with a pinch of salt and there was not a lot to choose between them at time of writing. McAdam had some stuff to say about the merits of being a major content owner on the analyst call, which Light Reading reported on. Here are the financial tables if you’re into that sort of thing.
Source: telecoms
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