US mobile network Verizon disappointed across the board on Wednesday, disclosing poor results alongside the announcement that customers will be unable to buy Google’s new phone in stores without a pre-order.
The telecommunications giant reported a 6.7 percent drop in quarterly revenue, with total operating revenue falling to $30.94 billion, from $33.16 billion the year before. The group also added half the number of subscribers forecast by Reuters; it announced the addition of 442,000 retail postpaid subscribers, well below the 766,300 expected by analysts for the third quarter.
Net income attributable to Verizon also fell to $3.62 billion, or 89 cents per share, down from $4.04 billion, or 99 cents per share, the previous year.
“Verizon continues to deliver strong financial and operational results in highly competitive markets while positioning itself for future growth,” Chairman and CEO Lowell McAdam said in a statement.
“While we transform our company in a challenging environment, we have maintained the financial flexibility to invest in our industry-leading networks to better serve customers, add scale to bring innovation to the mobile media and Internet of Things (IoT) markets, and increase dividends for a 10th consecutive year.”
Verizon are currently in the process of buying Yahoo Inc’s core business, in a deal worth $4.83 billion. The company failed to mention the deal in its trading update on Thursday, despite already having been shaken by Yahoo’s data breach earlier this year.
To add to the disappointment, Verizon’s communications manager Jerry Nelson tweeted that “Initial inventory of Pixel XL 128GB is SOLD OUT… NOT in stores Thurs”, before telling customers to get to Verizon stores early in order to buy other models of Google’s new phone. On Verizon’s website, the 128GB 5.5-inch device is backordered until November 18th.
Verizon (NYSE:VZ) shares were down 2.40 percent in pre-market trade on the New York Stock Exchange.