Verizon Misses Subscriber Estimates, a Hurdle in the 5G Race
(Bloomberg) -- Verizon Communications Inc. lost regular wireless subscribers for the first time in a year, a troubling sign as the company hustles to catch up with rivals AT&T Inc. and T-Mobile US Inc. in a race for 5G customers.
- The largest U.S. wireless carrier posted a loss of 170,000 monthly wireless subscribers in the first quarter. Analysts predicted 82,100 new customers. Earnings of $1.31 a share, excluding some items, topped analysts’ expectation of $1.29. Revenue of $32.9 billion was ahead of the estimate of $32.47 billion.
- See more details.
- Verizon spent more than $52 billion on midband airwaves last month and plans to have these new 5G signals available to a third of the nation early next year.
- While AT&T and T-Mobile have been running free-phone promotions to keep and add customers, Verizon has been more measured in its offers. The difference can be measured in subscriber growth, where Verizon has lagged behind the pack.
- Verizon continues to see partnerships like its ones with Amazon.com Inc. and Corning Inc. as the best path to bring advanced 5G services from development to actual sales.
- Verizon shares were up 0.2% to $58.50 at 9:38 a.m. in New York. The stock is up 2.8% from year-ago levels, while AT&T is about flat and T-Mobile is up 50%.
- Read the statement.
- See Verizon estimates.
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