USA Coronavirus Covid-19 pandemic 2020 USA

Verizon Q1 Sales Down 1.6% on COVID-19 Store Closures, Media Division Hurt by Ad Rates

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variety.com

By Todd Spangler NY Digital Editor Verizon posted first-quarter 2020 revenue of $31.6 billion, down 1.6%, citing the impact of the coronavirus pandemic for the miss on Wall Street expectations.

The top-line decline primarily resulted from “sharp reductions” in wireless equipment revenue, after social distancing measures were adopted in March — prompting Verizon to close 70% of its retail stores.

Verizon estimated COVID-19 reduced Q1 earnings by 4 cents in earnings per share, primarily as the result of customers not paying their bills.

In the quarter, Verizon said “bad debt” expenses increased by $228 million based on the expected number of customers who will seek payment relief under the FCC-led Keep Americans Connected pledge.

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