Bolstered by strong wireless results, Verizon reported a 2.8% increase in revenues for the third quarter of 2018 to 32.6 billion US dollars. Excluding the impact of a new revenue recognition standard, revenues were up 2.6% year over year.
Verizon Wireless reported a 6.1% increase in revenues to 23 billion US dollars, excluding the impact of the revenue recognition standard. However, much of that increase was down to stronger equipment revenues, with service revenues up 2.6%, driven primarily "by customer step-ups to higher price plans and an increase in average connections per account."
Moreover, Verizon’s media business, Oath, saw its revenue fall 6.9% year-on-year to 1.8 billion dollars. The company said Oath revenues will be relatively flat in the near term and it does not expect to meet its target of 10 billion dollars in Oath revenues by 2020. "We are seeing revenue pressure from search and desktop usage, which is more than offsetting positive growth in mobile usage and video products, including our distribution partnership with the NFL," the company added.
In the telematics business, total Verizon Connect revenues, excluding the impact of the revenue recognition standard, were 241 million dollars in the quarter. Internet of Things revenues, including Verizon Connect, increased approximately 12% year over year.
Verizon has just begun to rollout a "5G" fixed wireless proposition. Matt Ellis, CFO, said: "We started doing installs earlier this month... The technology works, our customers are getting the experience they expected, and we are getting a lot of good learning which will benefit us next year when we roll out the product to that much larger audience. 5G Home will become more significant as we expand coverage and we get on the global standards equipment in 2019. And I would expect that that would start to have an impact on consolidated revenues as we get into 2020 and beyond." Source: Verizon earnings call transcript