Verizon yesterday announced its first-quarter earnings for the year 2016. The telecom has posted first-quarter earnings per share of $1.06 and revenues at $32.17 billion. In the same period last year, Verizon’s earnings were $1.02 per share and revenues stood at $31.98 billion.
Verizon Communications first-quarter 2016 report has made it pretty evident that the telecom operator might be betting big on 5G and internet of things (IoT) space in 2016 to extend its dominance and expand its clout in the U.S. market. This decision sure makes sense if one considers that new revenue streams from IoT (Internet of Things), with revenues of approximately $195 million in first-quarter 2016, witnessed a year-over-year increase of about 25 percent.
Highlighting the company’s focus on IoT and other next-gen technologies, Verizon Chairman and CEO Lowell McAdam said, “Verizon’s strong first-quarter results demonstrate our capacity to compete effectively, while executing on our plan of continued network leadership and seeding new growth markets in mobile video and the Internet of Things.”
He also drew attention to Verizon’s plans of strengthening its networks in the U.S. by acquiring XO Communications’ fiber-optic network business and deploying a new fiber platform in Boston. The acquisition, which is awaiting regulatory approvals from various governmental agencies, is expected to be closed next year after which both the companies will support a mix of new technologies, including 5G wireless services.
CFO Fran Shammo divulged more about company’s ambitious 5G and wireless plans during the earnings call. He revealed that Verizon aims to become the first US operator to launch 5G and might have an initial fixed wireless pilot starting in 2017.
Verizon sure seems to be taking all steps in the right direction, but can’t really succeed if 40,000 employees of Verizon’s wireline business continue to remain on strike currently sunning in its second week. The strike has already started affecting the wireless carrier’s shares and can have devastating effect Verizon’s yearly earnings and plans if it continues for longer.