UPDATE: Verizon has “not reached any final conclusions yet” about its $4.8 billion agreement to buy Yahoo, the telco’s CFO Matt Ellis told analysts in a call to discuss Q4 earnings.
But the exec says that the company’s efforts to offer “timely, short form versions of video clips” have “gained traction.” While he didn’t mention Verizon’s decision to lay off 155 employees at the Go90 short form video operation, he says the company has seen “increased usage” of it and is “expanding our unique content offering.”
The average daily use of Go90 in Q4 was consistent with Q3 at “about 30 minutes per viewer.”
PREVIOUS, 4:27 AM: Verizon appears to be less confident about the fate of its planned $4.8 billion acquisition of Yahoo than the internet company was last night. The telco says this morning in its Q4 earnings report: “Regarding the Yahoo acquisition, Verizon continues to work with Yahoo to assess the impact of data breaches.”
The internet company said in December that an “unauthorized third party” stole information from more than 1 billion accounts in 2013. In September, it disclosed that 500 million accounts had been hacked in 2014.
Even so, Yahoo said yesterday that it’s “working expeditiously to close the transaction as soon as practicable in Q2,” back from its original plan to wrap up the deal by the end of March.
As for Verizon, the company’s filing doesn’t discuss its decision, disclosed last night, to lay off 155 Go90 employees. That could come up later this morning when executives talk with analysts.
The telco says it ended Q4 with 4.7 million FiOS video subscribers, up 1.3% vs the period last year.
The full company generated $4.6 billion in net income, down 16.6% from last year, on revenues of $32.3 billion, down 5.6%. The top line was slightly ahead of analysts’ expectations for $32.1 billion. Adjusted earnings, at 86 cents a share were short of the Street’s anticipation of 89 cents.
Verizon shares are down about 2.7% in pre-market trading.
“We are positioning Verizon for future growth and continued sustainable shareholder value,” CEO Lowell McAdam says. The company enters the new year “with confidence, based on our investments in next-generation networks and the new capabilities we have acquired. Our goal is to continue to earn our customers’ loyalty every day in a rapidly expanding mobile-first digital world.”
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