Verizon’s IoT sales climb 13%, twice its total Q1 revenue growth
US carrier Verizon saw its revenues from ‘internet of things’ (IoT) based services climb 13 per cent in the first quarter, compared with a year ago, almost double the rate of growth across all of its operations.
In total, the company reported consolidated growth of 6.6 percent for the three months to March 31, finishing at $31.8 billion.
Is telematics business, a function of its broader IoT operation, delivered $234 million in sales in the period. Verizon has created a new Verizon Connect division, as part of the continuing integration of its Fleetmatics and Telogis acquisitions, it said.
The company’s total net income was $4.7 billion in the first quarter, with a margin of 36.7 per cent. Its EBITDA finished at $11.7 billion. It added 359,000 new connected devices in the period, offsetting a decline in its overall smartphone and tablet subscriptions, of 24,000 and 75,000 respectively.
Lowell McAdam, chairman and chief executive at Verizon, commented: “We began 2018 with strong momentum, and we expect it to continue throughout the year. We are positioning Verizon for long-term growth while executing our strategy today and leading the way for the next cycle of growth for the industry.”
The company expects low single-digit revenue growth for 2018, it said.
Verizon was the first US carrier to launch a nationwide LTE-based IoT network a year ago, backing LTE-M IoT as its connectivity technology, promising IoT plans from just $2 per month per device, with customised options for bulk activations. The company’s ThingSpace platform, launched back in 2015, is a cornerstone of its IoT proposition.