John Paczkowski

Recent Posts by John Paczkowski

Big Red in the Red

Reporting fourth-quarter earnings this morning, Verizon posted revenue that jumped 9.9 percent to $27.09 billion and said it added 2.2 million mobile subscribers. Yet the company reported a loss of $653 million, or 23 cents a share, for the quarter–mostly because of costs related to layoffs in the period.

Quite a change from the profit of $1.24 billion, or 43 cents a share, the carrier reported in the quarter a year ago.

Analysts polled by Thomson Reuters (TRI) had been expecting earnings of 54 cents a share on $27.33 billion in revenue.

Revenue from Verizon’s (VZ) wireline services declined 3.9 percent to $11.5 billion. But data revenue rose 31 percent, to $16 billion. And wireless data revenue accounted for 32 percent of all service revenue, up from 26.5 percent a year earlier.

“Today’s 4Q results were eye-opening, if only because of the magnitude of the divergence,” Bernstein analyst Craig Moffet said in a research note issued after earnings. “Amidst an aggressive campaign to reinforce their positioning as the best-in-class network, and no doubt aided by AT&T’s well-publicized network travails, Verizon Wireless pulled away, with a solid 1.15M subscriber gain in post-paid and, more surprisingly, a huge opportunistic 1.0M subscriber gain in wholesale.”

But, Moffett cautioned, “…Wireline results were at least as weak as Wireless was strong, and Wireline remains the company’s center of gravity. Notable in the Wireline results were a worsening of trends in the legacy copper business and–perhaps worse–a serious miss in the growth of their FiOS business as well….Overall, we think the results must be judged as something of a disappointment.”

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work