The New Jersey-based telecom giant reported its second quarter in a row of declining performance, with a profit of $3.6 billion in comparison to last year’s $4 billion. CEO Lowell McAdam, in a statement, attributed the performance in part to a “highly competitive” wireless market, with continued pricing wars embroiling Verizon as well as its rivals.
For growth, Verizon has been looking to new ventures that take advantage of its network infrastructure, including digital media, IoT, and fleet management.
To that end, Verizon agreed in July to acquire Yahoo’s core business for $4.8 billion, with the goal of integrating the Silicon Valley company’s media assets with that of AOL. But the completion of that transaction hit a major speed bump last month, when Yahoo disclosed that 500 million of its accounts had been previously hacked.
“This was an extremely large breach,” CFO Fran Shammo said today in response to an analyst question. “We have to assume it will have a material impact on Yahoo.” He also set expectations that the renewed negotiations between Verizon and Yahoo would likely extend for months.