The company expects to leverage Vestberg’s technical acumen to build network infrastructure and prepare itself to take forward the recently launched 5G service. When it comes to monetizing the innovations, a lot will depend on how effectively the management executes its cost-cutting program that targets to save about $10 billion in the next three years.
The wireless segment, which accounts for more than three-fourths of the revenue, will continue to lead the company’s business
In the second quarter, adjusted earnings of New York-based Verizon climbed 25% annually to $1.20 per share, beating predictions. Meanwhile, the unadjusted profit was dragged down by one-time costs. Reflecting the strong subscriber growth and consistent customer loyalty, revenues grew 5.4% to $32.2 billion.
Verizon Q2 profit rises on subscriber growth, tops view
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The company has been drawing strength from its fast-growing wireless service and positive operating cash flow across all markets to compete effectively with rivals like AT&T (T), which is scheduled to release results for the most recent quarter on October 24 before the opening bell. Nearly a year after acquiring Time Warner, AT&T recently rolled out its video-on-demand service, offering original content from HBO.
Verizon shares climbed to a 20-year high earlier this month. Over the past twelve months, the stock grew more than 10% to stay above its long-term average, while also outperforming the sector. It closed Thursday’s trading higher and continued to gain in the early trading hours Friday.