5G Accelerates Verizon Postpaid User Additions and Helps Increase Profit Visibility

The Verizon store in Superior, Colorado, United States on July 27, 2017. REUTERS / Rick Wilking

Oct. 20 (Reuters) – Verizon Communications Inc (VZ.N) said on Wednesday it added more postpaid phone subscribers than expected in the third quarter and raised its annual profit forecast, as more Americans switched to 5G compatible devices.

The wireless operator has invested heavily in 5G technology to cope with an increase in demand for mobile and data plans which peaked during the pandemic.

The technology is touted as offering better coverage and a faster internet, in an age when many social interactions, work and education are online.

Verizon added 429,000 postpaid phone subscribers in the quarter, above FactSet estimates of 302,300.

Analysts and investors are keeping a close eye on postpaid phone numbers as these customers pay a recurring monthly bill, making them valuable to carriers, although subscriber numbers between U.S. carriers can be difficult to compare given the variety of packages offered.

As the holiday quarter approaches, carriers are also giving aggressive subsidies for Apple Inc’s new line of iPhones (AAPL.O). The phones come with custom 5G antennas and radio components for faster speeds.

Verizon increased its trade-in subsidies to $ 1,000 for the latest iPhone 13 in September, matching rival AT&T (TN) in an effort to attract more customers to its carrier network. Read more

The company has raised its adjusted earnings per share expectation for 2021 to between $ 5.35 and $ 5.40 from its earlier guidance from $ 5.25 to $ 5.35.

In the reported quarter, Verizon’s total operating revenue rose 4.3% to $ 32.9 billion, but missed the analysts average estimate of $ 33.2 billion, the data showed. by Refinitiv.

Excluding items, it gained $ 1.41 per share, beating expectations by $ 1.36.

Shares of Verizon rose 0.7% in pre-market trading.

Reporting by Richard Rohan Francis and Eva Mathews in Bengaluru; Editing by Arun Koyyur

Our standards: Thomson Reuters Trust Principles.

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