Verizon's flexible 5G plans boost wireless subscriber additions
Technology
Verizon's flexible 5G plans boost wireless subscriber additions
(Reuters) - Verizon added more wireless subscribers than expected in the third quarter as the US telecom giant's promotional offers and plans that bundle 5G with streaming services such as Netflix helped attract customers.
Growing adoption of the company's myPlan, a customizable offering with streaming perks including Disney+, Hulu, and Max for an extra cost, has helped Verizon stay resilient in the competitive US telecom market.
The company added 239,000 net monthly bill-paying wireless phone subscribers in the September quarter, compared with expectations of 218,100 additions, according to FactSet. It posted 148,000 additions for the June quarter.
With the US wireless market nearing saturation, Verizon and its rivals have been looking to expand their high-speed broadband internet business to tap increasing customer data use. The company agreed to buy fiber-optic internet provider Frontier Communications (FYBR.O) last month in a $20 billion deal.
Verizon's broadband net additions were 389,000 in the quarter, compared with 434,000 a year ago, bringing total broadband subscribers to more than 11.9 million.
The company is expected to reveal its broadband strategy, including new targets for the segment, later in the day during a call with analysts.
Its fixed wireless service, which sends signals to a device in a home or business over airwaves, added 363,000 customers to hit a total of nearly 4.2 million, meeting its goal of 4 to 5 million subscribers more than a year ahead of schedule.
Boeing workers striking outside the plane maker's 737 factory near Seattle on Monday were skeptical about a new contract offer that includes a 35% pay raise.
Excluding items, Verizon reported a profit of $1.19 per share, compared with estimates of $1.18, according to data compiled by LSEG.
But its total revenue of $33.3 billion came in slightly below analysts' expectations of $33.43 billion, largely driven by declines in the company's wireless equipment revenue, as customers dialing back spending amid high interest rates led to fewer phone upgrades.
Shares of the company were down 1.7% in premarket trade.
Net income fell to $3.4 billion from $4.9 billion a year ago, hit by severance charges of $1.7 billion from a voluntary separation program and other headcount reduction initiatives.
