Verizon beats profit estimates as iPhone launches boost subscribers
Verizon on Wednesday reported quarterly profit and wireless subscriber additions that exceeded Wall Street expectations, as promotions tied to recent iPhone launches helped the U.S. telecom giant attract more customers.
The company added 44,000 total monthly bill-paying wireless subscribers in the third quarter, surpassing analyst forecasts of 19,000 additions, according to FactSet data, News.Az reports, citing Reuters.
The strong results may ease investor concerns that Verizon is losing ground to rivals T-Mobile and low-cost cable providers.
Carriers launched aggressive promotions, including trade-in discounts and switching incentives, following the September iPhone releases in an effort to retain and attract customers. Verizon’s customizable “myPlan,” offering a three-year price guarantee, remained popular among users.
More than 18% of Verizon’s wireless postpaid users have also subscribed to its broadband offerings.
Newly appointed CEO Dan Schulman is expected to outline Verizon’s growth strategy during the company’s earnings call later on Wednesday.
Verizon reaffirmed its full-year profit and free cash flow outlook, saying capital expenditures would remain within or below its previous guidance range of $17.5 billion to $18.5 billion.
The company posted total revenue of $33.8 billion for the quarter, compared with analysts’ expectations of $34.28 billion, according to LSEG data. On an adjusted basis, Verizon earned $1.21 per share, beating estimates of $1.19.
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