12/18/2022 0 Comments Verizon yahoo writedown![]() ![]() Adjusted earnings per share, which excludes the impact of new lease accounting standards, will be "similar" to 2018. In terms of guidance, Verizon expects full-year 2019 revenue to grow by a low-single-digit percentage on a GAAP basis. Verizon will expand its commercial launch of 5G in 2019. When asked about the company's outlook for Verizon Media revenue, CFO Matt Ellis acknowledged ongoing declines but expressed optimism for 2019, saying, "The assumption, as we head into this year, is that we'll make progress on the revenue line." We are laser focused on delivering customers a best-in-class and game-changing experience on our networks. As we head into 2019 and the 5G era, we're beginning a period of transformational change. Verizon lost 46,000 Fios video connections due to cord-cutting.Ģ018 was a remarkable year full of 5G firsts, including being first in the world to commercially deploy 5G with our 5G Home product. The company has saved $2.3 billion so far through 2018.įios revenue grew 2.5% when excluding the impact of new revenue recognition standards, thanks in part to adding 54,000 net Fios internet connections. Verizon says it is on track to generate $10 billion in cumulative cash savings by 2021, a goal set in 2017, in order to fund dividend payouts. Verizon Media announced earlier this month that it was laying off 7% of its employees, impacting about 800 workers.Ĭapital expenditures were $2.3 billion in the fourth quarter, bringing full-year capital spending to $16.7 billion. The company recognized a $4.6 billion goodwill impairment charge related to Verizon Media. Verizon Media revenue fell 6% to $2.1 billion, but was up sequentially due to seasonality. On a GAAP basis, Verizon posted net income of just $2 billion, or $0.47 per share, due to the writedown. The company also added 11,000 tablet connections and 556,000 other connected devices, mostly wearables. Verizon reported 1.2 million retail postpaid net additions in the fourth quarter, including 873,000 postpaid smartphone net additions. What happened with Verizon Communications this quarter? The buyouts are part of a plan to cut costs and shift investments into wireless and 5G.Retail postpaid average revenue per accountĭata source: Verizon. Verizon announced Monday that 10,400 management employees had accepted voluntary buyout deals, out of 44,000 who were eligible. Guru Gowrappan, Oath's president and former chief operating officer. ![]() He was a driving force behind Verizon's media acquisitions. In September, Oath CEO Tim Armstrong left. This summer, Verizon replaced CEO Lowell McAdam with Hans Vestberg, the telecom company's former chief technology officer. Verizon plans to focus more on wireless technology and less on content and distribution. The Verizon media unit's poor performance led the company to make "unfavorable adjustments to Oath's financial projections" for the next five years. Facebook, Google and Amazon are sucking up ad dollars, forcing publishers to search for other streams for revenue. Oath "has experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings," according to a filing with the SEC Tuesday. The telecommunications giant said the integration of Yahoo and AOL didn't meet expectations. With virtually no goodwill brand value, Oath's overall value (assets and goodwill) is now worth half of what it was a few years ago. It bought Yahoo for $4.5 billion in 2017 and AOL, which owns HuffPost, for $4.4 billion in 2015. Verizon snapped up a number of legacy media brands in recent years to create Oath. Verizon said Oath's brand was worth $4.8 billion when it last accounted for the company's goodwill valuation. ![]() That's a stunning decrease in value since it formed in 2017. Oath's brand value is now worth just $200 million, according to Verizon. Verizon announced Tuesday that it would take a $4.6 billion writedown on its the media unit, which includes Yahoo and AOL. Verizon just admitted that the value of its media brand, Oath, is essentially worthless. ![]()
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