They are in 130 bil in debt from wireless. Wireless has seen very slow growth and leveling off. They admit to a 2nd Q issue. (maybe due to the strike or due to its business plan ? )
21 replies (most recent on top)
I Agree! Q1 won't be the last time VZ reports a loss!
@ulb - thanks Francis, didn't know you were trolling on the layoff website. I thought you were getting ready to lie your a$$ off at the shareholder meeting tomorrow.
Tell me again when Verizon last reported a net loss? Because you said it has happened before. I can't recall when this last hapoened. In fact, I have NEVER seen Verizon go negative on growth and miss revenue targets since wireless and wireline merged.
Oh yeah and let's not forget about poor Sprint and T Mobile both reporting positive growth last quarter. Let's not forget they both are a fraction of the size of Verizon with far less operating expenses and OH! Guess what? They both have parent companies with deep pockets! What does Verizon have to fall back on? Lowell's bank account in the Cayman Islands?
jbm: I don't think you understand that a net loss of 8000 subscribers happens every few quarters when a competitor is launching 1/2 price specials. It's not the first time and won't be the last time VzW has a negative "net add" for a quarter.
A "net add" of -8000 is really irrelevant when a company adds half a million lines and churns half a million plus 8000. That's all it is. Next quarter will be different because TMO and Sprint are both losing money with all the half-price specials they are using to gain customers. Those two also focus on pre-paid users which Verizon and AT&T don't want because they tend to be people with bad credit ratings who don't use a lot of data. Verizon and AT&T both hold firm on their margins knowing it will result in losing low end customers, and that is part of their business plan.
You and your brethren need to learn how the consumer wireless business works before citing figures that you don't really understand. Churn is one of the things that differentiates wireless from wireline, and it hits all the carriers.
qsa - the union workers don't maintain the backbone so your argument is a moot point. The union works the last mile, and the last mile is irrelevant to the backbone and wireless.
Sounds like some you need to brush up on your technology if you don't understand Access Networks, Service Networks, and Backbones.
jbm, you nailed it.
Shammo says Q1 wireless growth was bad because it was "seasonally a slow time of year" what a crock! Is that going to be the excuse in Q2?
Yeah but those prices for the circuits are going to be MUCH higher than what they're paying now. Right now wireless is paying hardly anything for the connections that they charge other companies a small fortune for. This is why I would love to see them sell wireline to Frontier. Once they have to pay full market price for tower connections AND have no other division to hide their bills wireless profits are going to sink like the Titanic.
When the revenue drops, your pensions drop. Don't you think that any of the pension funds include Verizon stock?
oxm , spun off? at what cost? a loss? no plan there.
I'll say this again. Verizon is fuked. It doesn't matter if your a wireline or wireless fanboy.
This is MCI Worldcom 2016. There is ZERO growth for Verizon. There is only subscriber loss in its future and maturing debt it can't pay.
Yes oxm - that sounds like a plan. Go with that and let me know how it works out.
Ill say this again. That backbone argument is so moot. They don't need to pay ANYWHERE near 39k people to keep the wireless transport network online. They already contract some of that out. Yiu guys cover the last mile and guess who doesn't give a sh-- about the last mile.
You do realize that the wireline backbone is necessary to run wireless right? Let me put it to you in simple terms that you may be able to understand with your limited IQ. Wireline is the coaxial cable coming into your home and plugged into the back of your modem/router. Wireless is the modem/router to your laptop. Without that wired connection you have nothing. So Fran and his buddies can cook the books anyway they want but this company is nothing without wires and fibers.
Wireline can be spun off or sold. Then wireless pays whatever rates are dictated by the FCC or state PUC rules without having to deal with any of the union headaches. Sounds like a plan.
@jcc "Generates most of the revenue? And profit by a LOT?" You sound like a financial genious! Are you on Francis's team?
Verizon posted a loss of 8,000 subscribers in Q1 and in Q2 it will be worse. All this OT and travel they are paying the ewa's is going to have to be written off somehow. And let's not forget Lowell wants Yahoo. Hopefully he wins that and lands another $8 to $10 billion bill to add to the pile of debt.
Verizon is going to eat $hit in Q2 and have to close stores and lay off more employees and sell more assets to keep from sinking.
I don't see how anyone can't see this is happening. They are overpriced, they don't have a network advantage anymore, 5g is Lowell's little pipe dream and he has no money to fund it. Verizon stores are filled with expensive overpaid clerks trying to sling crap you can buy for pennies on the dollar online. FiOS is being abandoned while Google is building out there fiber. The public hates Verizon because they cost too much and bad PR from the strike.
What else have you got? Tell me something positive happening at this toilet of a company right now. One thing?
Since wireless generates most of the revenue and profit by a LOT, a drop in wireline revenue won't impact the business. And wireline revenue is far less profitable than wireless which makes it even less relevant.
ALL operating expenses are dumped onto the wireline to make it look bad.
7% you say?
The numbers can be manipulated towards any side your on.
Proof is in the Huffington post. If your so smart maybe you should do your homework before drinking VZ's kool aid.
Wireless is flat and growing slowly. The strike is not only affecting wireline , it's affecting wireless. Open your eyes. Verizon wireless stores are picketed, they have seen the affect. i.e. signs have to be put up saying they are open.
Wireline accounts for 7% of revenue.
Since the strike will only affect wireline, it will not be an issue.
Nice try,
No need to worry, Hum, Go90, AOL, Telematics, Terremark and soon Yahoo! will be paying off soon. And Verizon is going to start paying employees with Bitcoins so wages won't impact cash-flow.
Never fear, the execs at Verizon have it all figured out.
BTW, I'd suggest selling all of your stock before it tanks.
Verizon had a shortfall post frontier transition on there eps, which the cfo said would be level. This resulted in no overtime, no spending etc. To ensure numbers where met in the first quarter. In order to ship a required part one needed evp approval. Does this sound like a company in good financial shape? Wireline accounts for 30 percent of revenue thats one third, but only 7 percent of profits, because hnder the fcc freeze rules wireline pays all the bills. Wireline is critical to verizon revenues and is what allowed them to buy wireless, aol, redbox, terramak. The company neess cover from the poor decision making at the top with investors. A labor dispute is easy to blame for financial issues. They are putting union on the street, killing managment staff with hours for a penny a share drop.