Verizon beats phone subscriber estimates

(Reuters) – Verizon Communications Inc (VZ.N) on Tuesday beat Wall Street estimates for net new phone subscribers who pay a monthly bill, helped by promotional offers for Apple Inc’s (AAPL.O) new iPhones.

The Verizon logo is seen on the side of a truck in New York City, U.S., October 13, 2016. REUTERS/Brendan McDermid

Apple launched the iPhone XS, XS Max and XR in September, triggering heavy promotional activity in the telecoms industry. Under Verizon’s iPhone offer, a user can buy an iPhone and get up to $750 off on X and XR models.

The largest U.S. wireless carrier by subscribers faces competition from companies such as T-Mobile US Inc (TMUS.O) and Sprint Corp (S.N), who offer discounts on call and data plans.

Verizon launched 5G home internet in four cities earlier this month, claiming status as the first to bring a commercial 5G product in the United States amid heated competition between major carriers.

Verizon said it added a net 295,000 phone subscribers during the third quarter, beating estimates of 161,000 new subscribers, according to research firm FactSet. [nGNXb3bkfn]

Net income attributable to the company rose to $4.92 billion, or $1.19 per share, in the third quarter ended Sept. 30, from $3.62 billion, or 89 cents per share, a year earlier.

On an adjusted basis, Verizon earned $1.22 per share, beating analysts’ estimates of $1.19 per share, according to Refinitiv data.

Verizon said it lost 63,000 Fios video subscribers during the quarter, more than the 18,000 it lost last year, as viewers continue to favor cheaper TV services delivered over the internet, over paying for pricier cable packages.

It added 54,000 Fios internet customers, compared to 66,000 added a year earlier.

Total operating revenue rose 2.8 percent to $32.61 billion during the quarter, beating analysts’ estimates of $32.51 billion, according to Refinitiv data.

Reporting by Akanksha Rana in Bengaluru and Sheila Dang in New York; Editing by Supriya Kurane

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