Amid competition, Verizon loses key customers for first time

Amid competition, Verizon loses key customers for first time

Subscribers: Verizon saw an overall net decline of 307,000 retail postpaid customers during the quarter, and its 289,000 net postpaid phone losses were far worse than the loss of 100,000 customers predicted by Wells Fargo Securities.

In February, Verizon announced that it would offer an unlimited data plan for the first time in more than five years, following which other companies sweetened their unlimited offerings.

The company has pursued revenue streams outside its core wireless business, including a $4.48 billion deal for Yahoo Inc's core business.

The industry's bruising price war has been a boon to consumers.

Wireline revenue declined 0.6% to $7.9 billion.

Delia Brown, a nurse's assistant in Sandusky, Ohio, upgraded three of her Verizon phone lines to unlimited data and her monthly bill dropped more than $40.

Rival AT&T Inc. has diversified with its acquisition of DirecTV and proposed purchase of media giant Time Warner Inc. But Verizon doubled down in 2014 with its $130 billion purchase of Vodafone Group PLC's 45% stake in their Verizon Wireless joint venture. It also offered insights into both wireless and wireline users, as well as projections and expectations for the full year results.

". if there is the right opportunity out there to accelerate [Verizon's] strategy organically in a way that adds shareholder value, we're always looking at those opportunities", Verizon Chief Financial Officer Matthew Ellis explained McAdam's comments in a conference call Thursday. T-Mobile was also limiting the quality of streaming video unless customers paid extra but added HD video to its base $70 plan in response to Verizon's unlimited plan.

The telecom giant's much-talked-about acquisition of Marissa Mayer 's Yahoo (YHOO) is still pending, complicated by the two data breaches that Yahoo announced previous year, which affected up to 1.5 billion users throughout 2013 and 2014. The company had been on pace to lose almost 400,000 customers during the quarter, CFO Matt Ellis said this morning, but the new plan helped the company stanch the bleeding. Verizon's 2017 effective tax rate should fall within a range of 34 to 36 percent, the company said, which would exclude any impacts from the Trump administration's potential tax reform.

Verizon's quarterly subscriber loss was the first of its so-called postpaid wireless customers in the company's history.

Much of the pain Verizon is going through began as a result of moves T-Mobile began making in 2013, such as ending two year contracts and canceling overage fees. The New York company says it would have lost even more customers if it didn't launch its unlimited cellphone plan in February. But that stands to leave Verizon in a familiar position: slowing growth on the top and bottom lines, and a sliding stock price.

"They badly missed on every important subscriber metric, and it just underscores that the wireless business is a severely growth-challenged business at the moment", said Craig Moffett, an analyst at MoffettNathanson in an interview.Net income attributable to Verizon fell to US$3.45 billion, or 84 cents per share, in the first quarter ended March 31, from US$4.31 billion, or US$1.06 per share, a year earlier. The cell phone carrier reported $0.95 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.98 by $0.03.

Total operating revenue fell to $29.81 billion for the fourth straight quarter from $32.17 billion a year earlier.

Related Articles

  • Chevrolet's all-purpose FNR-X concept revealed

    Chevrolet's all-purpose FNR-X concept revealed

    Ambient lighting reflects whichever driving mode has been selected, and graphene-inspired trim surround the driver and passenger. What's inside?The FNR-X has a creative, imaginative interior design that matches its exterior.

    Ossoff and Handel 'getting back to work' for June runoff

    Therefore, he will face a runoff election in June against Republican Karen Handel, the no. 2 vote-getter. The Democrat led a crowded 18-candidate field to replace Health and Human Services Secretary Tom Price .
    Broker Changes For Cedar Realty Trust, Inc. (NYSE:CDR)

    Broker Changes For Cedar Realty Trust, Inc. (NYSE:CDR)

    Wells Fargo downgraded The Ensign Group, Inc. (NYSE:ED) has "Underperform" rating given on Wednesday, January 25 by Credit Suisse. Numeric Investors Lc owns 98,034 shares or 0.05% of their U.S. portfolio. (O&R), Con Edison Clean Energy Businesses, Inc.
  • Nova Scotia dairy farmer 'udderly' upset with Donald Trump's trade comments

    Nova Scotia dairy farmer 'udderly' upset with Donald Trump's trade comments

    Trump vowed to move "very, very quickly" on negotiations with Canada, saying he would have a more detailed plan in coming weeks. Canada's supply management system works well, Dumontier says, keeping prices and supply stable without the need for subsidies.
    Eli Manning insists he did nothing wrong in memorabilia suit

    Eli Manning insists he did nothing wrong in memorabilia suit

    Brandon Steiner of Steiner Sports believes in Eli Manning when it comes to the recent memorabilia scandal, even without proof. A trial in Bergen County (New Jersey) Superior Court is scheduled to begin on September 25.

    Services set for Facebook murder victim Robert Godwin Sr

    Facebook founder, Mark Zuckerberg issued a statement saying, "Our hearts go out to the family and friends of Robert Godwin Snr". Tuesday after a McDonald's employee spotted him near Erie, Pennsylvania and state police pursued him in a brief chase.
  • Aaron Hernandez reportedly found with 'John 3:16' written on his forehead

    Aaron Hernandez reportedly found with 'John 3:16' written on his forehead

    According to the Boston Globe, Hernandez is the 27th suicide in MA state prisons since 2010, and the second so far this year. CBS reported one of the last people to see Hernandez alive was a close friend who is now in isolation on suicide watch.

    Pence says USA stands by ally Japan on North Korea problem

    The concerns were exacerbated after a North Korean missile exploded during launch on Sunday, U.S. and South Korean officials said. Tensions on the peninsula have ratcheted up in recent weeks amid sabre-rattling from both the United States and North Korea.
    Philippines checks report of 'harassment' near China-controlled reef

    Philippines checks report of 'harassment' near China-controlled reef

    Mendoza recalled that unlike during Aquino's six-year term, the ties between China and the rest of the world were peaceful. They said that they remain concerned about the situation in the East and South China Seas.
  • Turkey election board 'rejects referendum annulment bid'

    Turkey election board 'rejects referendum annulment bid'

    Turkey's main opposition party has filed a formal request seeking Sunday's referendum to be annulled because of alleged voting irregularities.
    Pro-pot activists plan to hand out joints outside Capitol

    Pro-pot activists plan to hand out joints outside Capitol

    Cannabis Campaign that organized the giveaway, said he was surprised by the arrests. Eidinger's group has a demonstration set for Thursday in Northeast near the U.S.

    Turkey's election board rejects referendum annulment request

    Erdogan congratulated the heads of political parties, who supported him in the "Yes" campaign during Sunday's referendum . Demonstrations have been held across Turkey to protest the YSK decision to consider the unstamped ballots valid.