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(Associated Press)

Verizon Reports 5.3% Fall in Revenue

Industries Reuters

Verizon Communications reported a bigger-than-expected fall in quarterly revenue on Tuesday as the No. 1 U.S. wireless carrier took a charge related to a strike by its wireline workers and more customers opted for cheaper plans.

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The company's total operating revenue fell to $30.53 billion in the second quarter ended June 30, from $32.22 billion a year earlier. Analysts had expected revenue of $30.94 billion, according to Thomson Reuters I/B/E/S.

Verizon added a net 615,000 wireless retail postpaid subscribers during the quarter. Analysts on average had expected the company to sign up a net 784,000 new subscribers, according to market research firm FactSet StreetAccount.

Net income attributable to Verizon fell to $702 million, or 17 cents per share, from $4.23 billion, or $1.04 per share, a year earlier.

A strike by about 40,000 Verizon wireline employees, which lasted nearly seven weeks, reduced earnings by about 7 cents per share, the company said.

The earnings also took into account a non-cash charge of $2.2 billion, mostly associated with new labor contracts and the sale of local landline businesses to Frontier Communications.

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Excluding items, Verizon earned 94 cents per share, beating the average analysts' estimate of 92 cents.

Verizon said on Monday it would buy Yahoo's core internet properties for $4.83 billion in cash to expand its digital advertising and media business.

 

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Ted Kerr)