Verizon Communications on Thursday published its consolidated financial report for the third quarter of the year, revealing it generated 603,000 postpaid net additions over the three-month period ending September 30th. The company's quarterly revenue amounted to $31.7 billion and hence indicated stagnation; while the figure represents a 2.5 percent increased compared to the third quarter of last year, it also marks a decline of 2.3 percentage points when adjusted to exclude acquisitions and asset sales. Verizon's net income reached $3.7 billion, with the company reporting a consolidated operating income margin of 22.7 percent. The company's postpaid net additions were largely driven by smartphone net adds which amounted to 486,000, with the telecom giant boasting strong subscriber loyalty by posting a postpaid churn rate of 0.97 percentage points.
Verizon's latest financials also reflected on the company's $4.48 billion purchase of Yahoo's Internet business which was officially completed at the beginning of its last quarter following numerous delays prompted by various federal investigations of several major hacking attacks suffered by the Sunnyvale, California-based firm in recent years. The telecom giant said its efforts to fully consolidate Yahoo's operations with those of AOL are ahead of its internal projections but hasn't elaborated on the matter. The two were officially merged into a unit called Oath whose revenue amounted to $2 billion in Q3 2017, though it remains to be seen where the division's results go from here and how will it perform in its first full quarter in business. Verizon's telematics operations yielded over $220 million in revenue over the three-month period, with its Organic IoT revenue growing by around 13 percentage points compared to Q3 2016. The firm lost 18,000 net Fios Video users and gained 66,000 net Internet connections during the recently concluded quarter.
Verizon's report largely met average analyst expectations and even slightly surpassed them in terms of net additions, with the company signaling it's in the right position to end its fiscal year on a high note with a lucrative holiday season. In terms of total revenues, Verizon is projecting that its annual performance will experience a decline smaller than four percent compared to 2016. The company's decline in 2017 is largely attributed to its decision to match T-Mobile's unlimited plan offerings and consequently cede some potential overage fees which it would have previously charged to a portion of its subscribers.