Verizon Beats on Profit as Wireless Revenue Gains - Hindustan Times
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Verizon Beats on Profit as Wireless Revenue Gains

Bloomberg |
Apr 22, 2024 06:56 PM IST

Verizon Communications Inc. beat analysts’ estimates for profit as it stemmed losses in consumer wireless customers and more people chose premium plans.

Verizon Communications Inc. beat analysts’ estimates for profit as it stemmed losses in consumer wireless customers and more people chose premium plans.

Verizon Beats on Profit as Wireless Revenue Gains
Verizon Beats on Profit as Wireless Revenue Gains

The largest US retail wireless provider reported first-quarter earnings per share, excluding some costs, of $1.15, it said in a statement Monday. That compares with analysts’ average expectation of $1.12. Operating revenue of $33 billion missed Wall Street’s prediction of $33.2 billion.

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“Our performance in the first quarter sets us up for a successful 2024,” Chief Executive Officer Hans Vestberg said in the statement. The company is “on track” to meet its financial guidance “and to deliver positive consumer postpaid phone net adds for the year,” he said.

The shares were up 1.6% in premarket trading in New York.

New York-based Verizon in recent years has lost ground in subscriber growth to wireless rivals. To regain momentum, it has simplified pricing for unlimited-data plans and offered add-on perks such as bundled Netflix and Max streaming plans. 

In the first three months of the year, Verizon reported losing 158,000 consumer wireless retail customers, compared with a predicted loss of 212,900. The drop was less than in the same quarter last year, and Verizon said its consumer segment turned in its best first-quarter performance since 2018.

Total wireless service revenue was up 3.3% to $19.5 billion, helped by price increases and by more people choosing premium plans, Verizon said. 

Verizon’s internet business boomed in the quarter. The company reported total broadband net additions of 437,000, the largest in more than a decade, with gains in fixed wireless and the FiOS wired product, Verizon said.

Fixed wireless offers internet service to a device in a home or dwelling over airwaves, rather than using a line into a home. Verizon says users can enjoy speeds comparable to a wired broadband connection, but access is limited to areas near cell towers.

Verizon’s fixed wireless offering saw an increase of 203,000 consumers and 151,000 businesses signing on in the quarter. The additions brought the number of customers using the service to 3.4 million of the company’s 11.1 million broadband internet subscribers.

Fixed wireless technology has accounted for more than 90% of recent broadband gains across the industry, buoying mobile carriers while cable rivals are likely to report customer losses for the first quarter, according to Bloomberg Intelligence.

Verizon shares gained 7.4% this year before Monday, outpacing rivals AT&T Inc., which was down 1.6% in the same period, and T-Mobile US Inc., which had gained 1.3%.

This article was generated from an automated news agency feed without modifications to text.

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