Verizon Communications Inc. (VZ) has reported 19.95 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3,450 million, or $0.84 a share in the quarter, compared with $4,310 million, or $1.06 a share for the same period last year. On an adjusted basis, earnings per share were at $0.95 for the quarter compared with $1.06 in the same period last year. Revenue during the quarter dropped 7.33 percent to $29,814 million from $32,171 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 60.87 percent. Total expenses were 75.91 percent of quarterly revenues, up from 75.31 percent for the same period last year. That has resulted in a contraction of 60 basis points in operating margin to 24.09 percent.
Operating income for the quarter was $7,181 million, compared with $7,942 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11,114 million compared with $11,321 million in the prior year period. At the same time, adjusted EBITDA margin improved 209 basis points in the quarter to 37.28 percent from 35.19 percent in the last year period.
"Our first-quarter results again demonstrated that customers value a high-quality network experience," said chairman and chief executive officer Lowell McAdam. "To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering a new unlimited pricing option and expanded our opportunities in new markets. Were executing on strategies to capture future growth and create long-term shareholder value."
Operating cash flow drops significantlyVerizon Communications Inc. has generated cash of $1,681 million from operating activities during the quarter, down 77.58 percent or $ 5,816 million, when compared with the last year period. The company has spent $4,833 million cash to meet investing activities during the quarter as against cash outgo of $3,436 million in the last year period.
Cash flow from financing activities was $4,579 million for the quarter as against cash outgo of $2,685 million in the last year period.
Cash and cash equivalents stood at $4,307 million as on Mar. 31, 2017, down 26.33 percent or $1,539 million from $5,846 million on Mar. 31, 2016.
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