Verizon beats quarterly estimates as subscriptions jump; shares up

Verizon beats quarterly estimates as subscriptions jump; shares up

(Reuters) – Verizon Communications Inc (VZ.N) reported better-than-expected quarterly profit and revenue on Tuesday as the No. 1 U.S. wireless carrier attracted more subscribers with unlimited data plans, sending shares higher in premarket trading.

The company added 398,000 subscribers who pay a monthly bill on a net basis, beating analysts’ average estimate of 352,000 subscribers, according to Thomson Reuters I/B/E/S.

Verizon said it expects full-year revenue growth in the low-to-mid single-digit percentage rates, due to higher equipment revenue trends.

The company has invested heavily in building its 5G network and plans to roll out the service in three to five U.S. markets in 2018. It named Chief Technology Officer Hans Vestberg as its new chief executive officer beginning Aug. 1, a move many analysts said signaled its focus on the network.

Shares, which have fallen more than 4 percent this year, were up 2.4 percent at $51.98 in premarket trading.

Net income attributable to Verizon fell to $4.12 billion, or $1 per share, in the second quarter ended June 30, from $4.36 billion, or $1.07 a share, a year earlier.

Total operating revenue rose to $32.20 billion from $30.55 billion a year ago, exceeding estimates for $31.78 billion.

On an adjusted basis, the company earned $1.20 per share, beating analysts’ estimates of $1.14 per share.

Verizon lost 37,000 Fios video subscribers during the quarter, up from losses of 15,000 a year earlier.

The company added 43,000 Fios internet customers, but growth fell short of the previous year by 12 percent.

AT&T Inc (T.N), the second-largest U.S. carrier, is set to report its results after the close of trading on Tuesday.

Reporting by Vibhuti Sharma in Bengaluru and Sheila Dang in New York; Editing by Bernard Orr and Bernadette Baum