uploads///Telecom Verizon Q Oath Revenue

Factors that Could Drive Verizon’s Revenues in 2019


Nov. 20 2020, Updated 4:01 p.m. ET

Oath aiming for up to $20 billion in annual revenues

In the first quarter, Verizon’s (VZ) Oath unit reported gross revenues of $1.9 billion, excluding the impact of its revenue recognition standard. Oath’s gross revenues declined sequentially by ~13.0% from the fourth quarter of 2017 levels of $2.2 billion due to seasonally lower display advertising performance.

Oath is Verizon’s digital media and advertising arm. It includes Yahoo and AOL properties, which Verizon acquired for ~$10.0 billion. Oath aims to generate $10.0 billion–$20.0 billion in annual revenues by 2020 from $7.0 billion in current annual revenues.

During the JPMorgan Global Technology, Media, and Communications Conference held on May 16, Matt Ellis, Verizon’s executive vice president and CFO, spoke about growth in the Oath unit.

Article continues below advertisement

Ellis stated, “As we jump off into ’19, that business should really be set up for strong growth at that point forward. But certainly still feel as excited as we did about the opportunity of bringing those assets together and combining it with the core Verizon business, and we think there’s significant upside.”

Verizon optimistic about digital media

With stiff competition in the traditional US wireless space, Verizon seeks to become a key digital advertising player similar to Facebook (FB) and Twitter (TWTR). Oath currently reaches an audience of ~1.0 billion people. Its goal is to double that audience to more than 2.0 billion people by 2020. Facebook has an audience of more than 2.1 billion, and Twitter’s global audience is ~330.0 million.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!


More From Market Realist

    • 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.