The US operator Verizon released its first-quarter earnings for the year 2016. It has reported the first-quarter earnings per share of $1.06 and revenues at $32.17 billion. Verizon as a whole reported a profit of $4.31 billion, up from $4.22 billion.
The company has made a sale of approximately $195 million in the quarter, a year-over-year increase of about 25% from Internet of Things (IoT). Its ThingSpace IoT developer platform has been responsible for this growth.
Verizon’s acquisition of AOL too seems to have contributed to its growth. The company has contributed with $669 million to Verizon’s revenue without which the company would have reported a 1.5% decline in revenue instead of the 0.6% increase.
Verizon equally focuses on digital media. After its purchase of 24.5% stake in a multi-platform media firm AwesomenessTV, the company has partnered with US media firm Hearst to acquire Complex Media. Complex will develop premium video content for distribution across Verizon’s digital platforms, including go90 and AOL. AwesomenessTV produces content for go90. Verizon has also made a bid for Yahoo.
“So this is really where we’re taking the video product on mobile, which is very different than what everyone else is talking about,” commented CFO Fran Shammo. “And we believe that’s where we are going to be a differentiated brand with go90 and AOL, and everything else that we’re doing around that video platform.”
“We remain encouraged by the viewership of go90. But as we have said before, we are still in the very early stages of gaining traction and engagement. We look forward to expanding our go90 content to other media through our AOL brand and the Web later this year,” he added. He hinted that Verizon will have “some numbers” around go90 and other millennial-focused platforms.
While releasing the Q1 results, Shammo reaffirmed Verizon’s intention to become the first US operator to launch 5G. The company targets to have an initial fixed wireless pilot starting in 2017.
“I want to reiterate that. This is fixed wireless, which is really one of the first cases that we see. It’s really not about mobile. It’s really around fixed wireless,” he said.
Verizon ended the quarter with 112.6 million total retail connections, ensuring its number one spot. Postpaid net adds totaled 640,000. Smartphone penetration increased to 85% of total phones while 4G devices now comprise more than 81% of its retail postpaid connections base. Nearly 92% of the company’s total data traffic comes from its LTE network.