uploads///Telecom Verizons Fios Revenue

Verizon’s Fios Revenue Growth Slowed Down in 4Q15

By

Jan. 28 2016, Updated 10:07 a.m. ET

Fios revenue growth in 4Q15

In the previous part of the series, we talked about the growth in consumer wireline revenue of Verizon (VZ) in 4Q15. This revenue stream grew YoY (year-over-year) by ~2.6% to ~$4.1 billion during the quarter. The revenue growth for Verizon Fios continued to slow down during 4Q15. Fios revenue grew by ~6.8% YoY to reach ~$3.5 billion during the quarter. You should note that Fios derives most of its revenue from the consumer wireline segment.

The 4Q15 growth in Fios revenue was lower than the YoY increase in this stream in 3Q15 and 2Q15 of ~7.5% and ~10%, respectively.

Article continues below advertisement

Growth in Fios customers in 4Q15

On a YoY basis, Fios Internet subscribers increased by ~6.3% YoY to ~7 million in 4Q15. Moreover, Fios video subscribers grew by ~3.2% YoY to ~5.8 million. The momentum in customer acquisitions in Fios slowed down sequentially during the quarter.

On a net basis, Verizon had customer additions in Fios Internet and Fios video of ~99,000 and ~20,000, respectively, during 4Q15. Earlier in 3Q15, these net customer additions in the service’s Internet and video components were ~114,000 and ~42,000, respectively.

Verizon’s Fios service

Fios is Verizon’s fiber-based voice, data, and pay-TV service. Fios is for both consumers as well as businesses. The service is similar to AT&T (T) U-verse. Moreover, it is comparable to the offerings of cable players such as Comcast (CMCSA) and Time Warner Cable (TWC).

For diversified exposure to Verizon, you may consider investing in the SPDR Dow Jones Industrial Average ETF (DIA). The telecom company made up ~1.8% of the ETF at the end of December 2015.

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.