Verizon Beats Expectations with Fewer Wireless Subscriber Losses

Verizon Communications reported better-than-expected performance in its wireless subscriber base for the first quarter, attributing the success to its flexible plans and streaming bundles, including offerings from Netflix and Warner Bros Discovery’s Max.

Wireless Subscriber Losses:

Verizon lost 68,000 monthly bill-paying wireless phone subscribers in the first quarter, significantly fewer than the estimated 100,000 analysts expected.

This performance marks a notable improvement compared to the loss of 127,000 subscribers in the first quarter of 2023.

Revenue and Performance:

Revenue for the quarter stood at $33 billion, slightly below estimates, as phone upgrade levels continued to decline.

Most Verizon customers opt for its premium, customizable myPlan option, which includes promotional offerings such as discounted subscriptions to Netflix and Warner Bros Discovery’s Max.

Strategic Initiatives:

Verizon introduced new promotional offerings for myPlan, including six months of a Disney bundle free for new and existing customers on selected plans.

Customers clearly prefer holding onto their phones for longer periods amid economic uncertainty and a lack of major new features.

Financial Metrics

Free cash flow, a metric that helps determine dividend payouts, was $2.7 billion, below the estimated $3.6 billion.

Verizon’s plans normally cost more than those of rivals such as AT&T and T-Mobile, which are scheduled to report earnings later in the week.

Verizon’s consumer business reported 158,000 wireless retail postpaid phone net losses, marking the unit’s best first-quarter performance since 2018.