AT&T vs. Verizon: Which Wireless Carrier Ruled the Quarter? презентация

rates

Let’s take a quick look at head-to-head comparison of some key metrics:

Total subscriber adds
Earnings
Other news

$0.55 per share

AT&T’s financials:

Verizon’s financials:

Total revenue of $33.2 billion
Diluted earnings of $0.71 per share

reports Average Revenue Per Account (ARPA), instead of by user. But if we divide the carrier’s ARPA ($162.98) by the number of connections per account (2.87), we get an ARPU of about $56.78 for the quarter

leave the carriers
Both companies have a a slightly higher than 1% churn rate, which is very low

Churn Rates:

year-over-year
Customers continually flock to the carrier’s “More Everything” plan, which brings in more revenue per account

Source: Verizon.

because of Mobile Share plan growth
But wireless revenues are still up 7.7% year-over-year

AT&T’s ARPU is down, but should bounce back:

additions:
Verizon added 2 million
AT&T added 854,000

But both added lots of total subscribers:

chose installment plans (NEXT) vs. subsidized phones
Wireless operating income was $3.2 billion -- down 18.1% year over year -- mainly because of increased volumes and costs from the Leap Wireless purchase
Wireless margins were pushed down to 16.3% (from 21.4% a year earlier) because of “strong seasonal gross adds and upgrades”, Mobile Share Value plans, and costs of new services

Other things to note for AT&T:

Source: AT&T..

streams from the Internet of Things and telematics brought in an additional $585 million in 2014
Verizon now has more than 108 million retail subscribers, up 5.3% year over year
Wireless operating income margins fell to 23.5%, down from 29.5% a year ago

Other things to note for Verizon:

Source: Verizon.

market, Verizon led the quarter in net additions -- no small feat for the nation’s largest carrier -- and managed to grow ARPA at the same time
For those reasons, Verizon ruled Q4. The carrier continually manages to stave off competitors in the fierce wireless market

So which carrier comes out on top in Q4?

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