Verizon lifts annual forecasts as new mobile plans spur subscriber gains

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

July 24 : Verizon raised its annual forecast for adjusted profit and free cash flow, as the network provider's latest unlimited 5G plans and rewards programs helped it add more wireless subscribers than expected in the June quarter.

Shares of the company were up 3 per cent in premarket trading on Friday.

The company is in the midst of a strategic transition under new CEO Dan Schulman, rolling out simplified mobile plans, a new loyalty program and bundled wireless-broadband offerings to improve customer additions after trailing rivals in subscriber growth.

Verizon gained 184,000 monthly-bill paying wireless subscribers in the second quarter, surpassing estimates of 103,900 additions by analysts polled by FactSet.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

In June, Verizon overhauled its wireless offerings with the launch of Simplicity, an unlimited wireless plan that replaces a more complex lineup with transparent pricing and includes access to the company's fastest 5G network and mobile hotspot data.

The company also introduced Verizon One, a bundled offering that pairs wireless service with home internet under a single monthly bill, mirroring a broader industry push towards convergence to deepen customer relationships.

"We are gaining subscribers and earning long-term retention based on real value rather than subsidized promotions," CEO Schulman said.

The company now expects an annual adjusted profit of $4.99 to $5.04 per share, compared with prior guidance of $4.95 to $4.99.

Free cash flow is expected to grow between 9 per cent and 10 per cent this year, higher than its previous estimate of about 7 per cent or more.

Second-quarter revenue came in at $34.3 billion, below analysts' estimate of $35.16 billion, according to data compiled by LSEG, as equipment revenue fell due to slower phone upgrade activity, with customers holding on to their devices for longer.

Adjusted profit of $1.30 per share, however, beat estimates of $1.27, helped by cost controls and reduced spending on device subsidies.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here