Verizon raises annual profit forecast on subscriber gains
The company added 55,000 wireless subscribers in the first quarter, marking its first net gain for the period in a decade. Annual profit is now seen up to $4.99.
VERIZON COMMUNICATIONS INC has raised its annual profit outlook following an unexpected surge in wireless subscriber growth during the first quarter. The telecommunications giant, headquartered in the United States, saw its shares climb 3% in premarket trading as investors reacted to the company's first net gains for the March-ended period in over a decade.
To drive this turnaround, the company implemented aggressive customer offers and bundled service plans. These initiatives included providing favorable terms to consumers switching from competitors such as AT&T INC and T-MOBILE US INC. During the quarter, the carrier added 55,000 monthly bill-paying wireless subscribers, significantly outperforming analyst expectations of a loss of 81,809 subscribers.
