Verizon added 429,000 postpaid phone subscribers in the quarter, above FactSet estimates of 302,300. Analysts and investors closely watch postpaid phone figures, as those customers pay a recurring monthly bill, making them valuable to the carriers, although subscriber figures between U.S. carriers can be difficult to compare given the variety of plans offered. In the run-up to the holiday quarter, carriers are also giving aggressive subsidies for the new range of iPhones from Apple Inc. The phones come with custom 5G antennas and radio components for faster speeds.
(Source: Reuters) As more Americans switched to 5G-enabled handsets, Verizon Communications Inc said on Wednesday that it attracted more postpaid phone subscribers than projected in the third quarter and upped its annual profitability projection. To keep up with a jump in demand for mobile and internet plans that skyrocketed during the pandemic, the wireless carrier has been significantly investing in 5G technology. At a time when much social interaction, work, and schooling is done online, the technology is said to give better coverage and faster internet.
Verizon has increased its trade-in subsidies on offer of up to $1000 for the latest iPhone 13 in September, matching rival AT&T in an attempt to attract more customers to its carrier network. The company raised its 2021 adjusted earnings per share expectations to between $5.35 to $5.40 from its prior guidance of $5.25 to $5.35. In the reported quarter, Verizon’s total operating revenue rose 4.3% to $32.9 billion, but missed analysts’ average estimate of $33.2 billion, according to Refinitiv data. Excluding items, it earned $1.41 per share, beating expectations of $1.36. Shares of Verizon were up 0.7% in premarket trading.