Verizon’s Q2 Earnings: AOL Helps, Strike Certainly Does Not

Telecom company agreed to buy Yahoo’s core assets yesterday

Last Updated: July 26, 2016 @ 9:27 AM

Verizon reported mixed second-quarter financials this morning, one day after it officially agreed to buy Yahoo’s core assets for $4.8 billion.

Wall Street had forecast earnings per share (EPS) of 92 cents on $30.95 billion in revenue for the AOL owner. With adjustments, earnings came in two cents north of the benchmark — they’d have been 7 cents higher than that if not for the strike, the company said.

Revenue of $30.5 billion fell a bit shy of analyst expectations. Net income for the large-cap corporation clocked in at $900 million.

Without breaking the actual numbers down more granularly, Verizon stated that AOL “delivered strong revenue growth” for its new parent company.

“Verizon’s second quarter shows that the company continues to deliver strong results while evolving operations and advancing a strategy to sustain network leadership, build new ecosystems and deliver the promise of the digital world to customers,” Chairman and CEO Lowell McAdam said in a statement.

“By acquiring Yahoo, we are scaling up to be a major competitor in mobile media,” he added. “Yahoo is a complementary business to AOL, giving us market-leading content brands and a valuable portfolio of online properties and mobile applications that attract over 1 billion monthly active consumer views. We expect this acquisition to put us in a great position as a top global mobile media company and give us a significant source of revenue growth for the future.”

The company added 615,000 retail postpaid net additions from its wireless business. Fios didn’t fair as well — losing 13,000 Internet connections and 41,000 TV subs — which was blamed on the work stoppage.

VZ stock closed down a couple of coins on Monday afternoon, following a Friday lift.

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