uploads///Telecom Verizons Fios Revenue

Verizon’s Fios Revenue Growth Slowed Down in 4Q15


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.

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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.


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