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Verizon Communications on Tuesday said it lost 63,000 Fios pay TV subscribers even as it beat analyst expectations on third quarter earnings and revenue.
Unveiling its latest financial results before the markets opened, Verizon saw its earnings per share come in at $1.22 on $32.6 billion in overall revenue. That beat a consensus analyst estimate call for $1.19 a share in earnings and $32.5 billion in revenue.
Verizon last year reported earnings of 89 cents per share and $31.7 billion in overall revenue.
The telecom giant said it lost 63,000 net pay TV subscribers for its Fios video service in the third quarter, compared with a loss of 18,000 in the year-ago period, with management reiterating that the continued loss of pay TV subscribers was due to a cord-cutting of video bundles. Overall Fios revenue came to $3 billion.
The Fios service competes with cable and satellite TV. Verizon’s Fios broadband service added 54,000 subscribers in the latest quarter, compared with 66,000 in the same period last year.
Verizon CFO Matt Ellis during an analyst call insisted the continuing loss of pay TV subscribers has been offset by a lift in broadband subscribers as TV viewers increasingly opt for streaming services.
“We’ll continue to see pressure on the TV numbers, but I would expect us to continue to grow the broadband side of our business…. If you’re going to rely on OTT for your entertainment, you want to ensure you have a good broadband experience,” Ellis argued.
Verizon’s media business saw Oath revenues fall 6.9 percent to $1.8 billion. Oath has Verizon in the content business, as it invests in live-sports mobile rights after renewing its deal with the NFL to stream games across its platforms, including Yahoo! Sports.
Oct. 23, 9:30 a.m.: Updated with comments that Verizon CFO Matt Ellis made during an analyst call following the release of his company’s third quarter earnings.
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