Verizon lost fewer phone subscribers than expected in the first quarter
Pedestrians walk by Verizon’s 5G network sign in New York, April 3, 2021.
Scott Mlyn | CNBC
Verizon Communications lost fewer monthly phone subscriptions than expected in the first quarter, a sign the wireless carrier is benefiting from its huge investments in expanding 5G services and broadband networks. new broadband.
On Friday, the company reported a loss of 36,000 monthly phone subscribers during the quarter, compared with FactSet estimates of a loss of 49,300.
Verizon said total revenue grew 2.1% to $33.6 billion for the three-month period, beating Wall Street’s $33.54 billion estimate, according to IBES data from Refinitiv.
Strong demand for high-speed Internet to facilitate matching work and education has boosted telecom companies’ profits, although analysts say the breakneck growth will start to slow. ease as the pandemic loosens its grip on the world.
Verizon has attracted customers through plans that come with more services. It has also seen steady growth in demand for fixed wireless access (FWA), or home broadband delivered through 5G networks, in recent quarters.
However, net income fell 12.4% to $4.7 billion in the quarter. Verizon said that figure includes a pre-tax loss from specials of about $1.5 billion, including a pre-tax loss of about $1.2 billion from early debt redemption costs.
Excluding items, the company earned $1.35 per share.
Verizon has updated its full-year guidance to expect wireless services revenue growth at the lower end of the previously guided range of 9% to 10%.
This story is evolving. Please check back for updates.