Verizon Communications (VZ) reported that fewer than expected wireless subscribers left the company’s subscriber base, and its shares rose by 2.5 percent in premarket trading. The better-than-expected results were due to the company’s flexible plans and streaming bundles. The US telecom company has been offering discounted prices for streaming services, including Netflix and Max from Warner Bros Discovery.
Verizon Communications lost 68,000 monthly bill-paying wireless phone subscribers in the first three months of this year. The period between January and March each year is seasonally soft for all telecommunication companies as it follows the holiday season quarter.
This is Verizon’s best first-quarter performance since 2018. In the same quarter in 2023, the company lost 263,000 wireless retail postpaid subscribers.
In the first quarter, they also posted a revenue of $33 billion. It was marginally less than an estimate by analysts surveyed by LSEG (formerly Refinitiv), who estimated an income of $33.24 billion. The drop has been attributed to customers holding on to old phones while waiting for a better economy or feature upgrade.
Verizon posted a higher profit, and its earnings per share beat LSEG analysts’ estimates. The US telecom giant reported a profit of $1.15 per share, while Wall Street had estimated a profit of $1.12 per share.
According to a company press release, Verizon Communications Inc. Chairman and CEO Hans Vestberg said their company’s “strong results” showed their team was “delivering.” The CEO also noted that the company was on track to meet its “financial guidance.”
Vestberg also said that Verizon would deliver “positive Consumer postpaid phone net adds” in 2024 and noted rapid “growth” in their “fixed wireless subscriber base” and more.
Verizon began offering discounted rates for Netflix and Max services on a few of its myPlan bundles. To increase its subscription base, Verizon partnered with popular streaming services. Last Thursday, it added six months of free access to Disney services to some new and existing plans.
CWEB analysts say that the telecommunications company is moving forward, and its share can be put on hold or even bought as it is optimistic about its future outlook. Our analysts see consistent results as the company decreased subscription decline in the first quarter.
Other telecom giants that compete with Verizon Communications will report results in the next few days, and industry trends might emerge as Verizon offers some of the most expensive consumer plans.
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