Verizon has reported a loss of 81,000 pay TV subscribers for its FiOS service, adding to a 25 percent decrease in revenue from its media unit.
With its recently released second quarter report, the company says its loss of 81,000 pay TV subscribers adds to a loss of 84,000 in the first quarter, Hollywood reporter Notes Verizon said the loss is part of the continuing change as customers cancel their cable services and tend to streaming and online services.
The telecommunications company noted that as the pandemic struck, forcing many to take refuge in their homes, its video game services grew and increased 75 percent during peak hours. Video streaming also increased by 12 percent. But Verizon also noted that its media unit was hit hard with the consequences of the coronavirus.
The media unit, including Yahoo, AOL and HuffPost, posted second-quarter revenue of $ 1.4 billion, down 24.5 percent on the prior year. Verizon said this was “primarily as a result of the COVID-19 related impacts.” While noting that revenue improved a bit in June as locks eased, Verizon still expects a loss of teen revenue for the third quarter.
The Verizon Media Unit has been in trouble for several years. In January 2019, Verizon fired 15 union writers in its HuffPost opinion section, citing restructuring plans. The layoffs were part of the elimination of 800 jobs in its media and advertising departments.
Explaining its five percent loss of revenue, the company said: “This decline was primarily the result of a significant decline in wireless equipment revenue in the consumer and business segments, primarily due to limited store engagement and the impact of COVID-19 on customer behavior. “Some of the losses can be attributed to the closure of many physical retail stores during the pandemic.
“Second quarter earnings increased from $ 3.9 billion, or 95 cents a share, to $ 4.7 billion, or $ 1.13 per share. Adjusted earnings per share fell from $ 1.23 to $ 1.18, but were ahead of analyst expectations, “he added. Reporter additional.
Hollywood reporter He went on to point out that Verizon had joined Facebook’s Black Lives Matter boycott.
Verizon recently joined the growing #StopHateForProfit campaign, with the telecommunications giant pledging to withdraw its Facebook and Instagram ads. “We have strict content and zero tolerance policies when violated, we take action,” Verizon media director John Nitti said in a statement. “We are pausing our advertising until Facebook can create an acceptable solution that makes us feel comfortable and is consistent with what we have done with YouTube and other partners.”
Vestberg said in Friday’s earnings report: “We remain focused on our strategic direction as a technology leader, quickly adapting to the new environment and providing our customers with vital and reliable technology services and connections, as we work to keep our employees safe and accelerate our 5G network deployment. We have embraced, engaged and responded to important social movements happening around the world, and we will continue to be at the forefront of initiatives that advance the world for all. ”
Verizon also recently jumped into the political arena by shutting down President Donald Trump’s texting program, alleging that the president’s voter outreach program presented “potential regulatory issues.”
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