Verizon’s sale of information and opinion web site HuffPost to BuzzFeed resulted within the telco taking a $119 million cost for the fourth quarter of 2020.
In asserting This autumn earnings Tuesday, Verizon mentioned the outcomes included a internet loss of $119 million “primarily associated to the disposition of the HuffPost enterprise.” When the businesses introduced the pact in November, they mentioned the HuffPost transaction was half of a bigger strategic partnership throughout content material and promoting between BuzzFeed and Verizon, underneath which Verizon Media took minority stake in BuzzFeed.
The final three months of 2020 represented a vibrant spot for Verizon Media — which posted its first year-over-year income achieve since shopping for Yahoo in 2017.
Complete Verizon Media income was $2.3 billion in This autumn, up 11.4%, which the telco was was “fueled by sturdy promoting tendencies.” Specifically, it mentioned, income from the demand facet platform grew 41% yr over yr.
Verizon Media’s properties embody Yahoo, TechCrunch, AOL and Engadget. The corporate accomplished its acquisition of the working enterprise of Yahoo for $4.5 billion in June 2017 two years after shopping for AOL for $4.4 billion. Verizon, which initially referred to as the merged Yahoo-AOL group “Oath,” had touted mixed attain of greater than 1 billion on-line customers. However even after a number of rounds of layoffs the projected synergies didn’t materialize and Verizon ended up taking a write-down on the worth of the Yahoo and AOL offers.
General, Verizon reported This autumn income of $34.69 billion, down 0.2% yr over yr. Income development for wi-fi providers and Verizon Media was offset by decrease wi-fi tools income and “ongoing declines in legacy wireline merchandise,” the telco mentioned.
The corporate reported internet earnings of $4.72 billion, down 9.6%, translating to earnings of $1.21 per share (excluding particular fees together with $404 million primarily associated to severance and the $119 million associated to the HuffPost deal). The outcomes edged Wall Avenue analyst common estimates for income of $34.43 billion and adjusted EPS of $1.17, in accordance to Refinitiv.
Verizon continued to shed pay-TV subscribers amid the sector’s ongoing contraction. The corporate reported a internet loss of 72,000 Fios Video subscribers in This autumn, for 3.854 million complete on the finish of 2020 (down 7.2% yr over yr).
On the broadband facet, the telco gained 95,000 Fios Web shopper and enterprise subs — probably the most fourth-quarter complete Fios Web internet additions since 2014. Verizon had 6.2 million shopper Fios Web prospects at year-end, up 5.1% yearly.