Verizon’s wireless revenue in 4Q15
In this series, we’ll look at the performance of Verizon Communications’ (VZ) wireless component during 4Q15. The telecom (telecommunications) company released these results on January 21, 2016. During the quarter, revenue for the company’s wireless segment increased slightly by ~1.2% YoY (year-over-year) to reach ~$23.7 billion. This figure was significantly lower than the ~5.4% YoY growth in 3Q15.
Wireless component’s service revenue in 4Q15
Now let’s look at Verizon’s service revenue, the major component for its wireless revenue. Note that service revenue is the core stable stream of wireless carriers. The top four US wireless carriers are Verizon, AT&T (T), T-Mobile (TMUS), and Sprint (S).
For Verizon, this stream continued to shrink YoY during 4Q15. However, the YoY decline in this revenue was higher in 4Q15 compared to 3Q15. The wireless service revenue fell by ~5.6% YoY to ~$17.2 billion in 4Q15. Earlier in 3Q15, this stream declined by ~4.1% YoY. Verizon’s wireless postpaid ARPA (average revenue per account) decreased ~6.6% YoY in 4Q15.
Wireless segment’s equipment revenue in 4Q15
The YoY growth in Verizon’s wireless equipment revenue also fell on a sequential basis in 4Q15. During the quarter, this stream increased by ~27.9% to ~$5.4 billion. Earlier in 3Q15, this revenue stream had grown by a robust ~73.1% YoY.
You can consider investing in the SPDR Dow Jones Industrial Average ETF (DIA) to take a diversified exposure to Verizon.
The telecom company made up ~1.8% of DIA at the end of December 2015. Note that Verizon was the only telecom player in this ETF.