Verizon Boosts Subscribers, Aided by New Pricing Plans -- 2nd Update
2019年10月25日 - 10:26PM
Dow Jones News
By Sarah Krouse
Verizon Communications Inc. added new phone subscribers in the
third quarter, aided by a revamp of its unlimited plans that shaved
about $5 off customers' monthly bills.
The carrier said it added 444,000 net new postpaid phone
connections during the period, compared with the 295,000 such
connections it added during the same period last year. Those new
phone connections in the third quarter handily exceeded analysts'
consensus estimates of about 300,000.
Wireless promotional activity picked up during the period, which
included the launch of Apple Inc.'s iPhone 11. Carriers rolled out
buy-one-get-one-free offers and other deals in September.
Americans' cellphone bills are falling as carriers compete for
customers in an ultra-saturated market and cable companies
increasingly offer lower-cost, competing services. The
consumer-price index for wireless phone service -- an indicator of
current offers from cellphone service providers -- fell 2.8% in
September from a year earlier, the 13th straight month of declines,
according to the Labor Department.
Verizon, the largest U.S. carrier by subscribers, is the first
big wireless company to report earnings for the period. AT&T
Inc. and T-Mobile US Inc. are scheduled to release their results
Oct. 28, while Sprint Corp. hasn't yet announced a date.
Verizon is trying to prove to Wall Street that it can be more
than a connectivity pipe and can find ways to monetize the faster
5G service it is rolling out. Early reviews of its 5G service have
been mixed because it is ultrafast but has a limited reach.
Meanwhile, the company is trying to shed costs, promising to cut
$10 billion by 2021. It said it has achieved $4.6 billion of that
total since last year.
Verizon has largely balked at buying into Hollywood or directly
competing in the streaming wars as rival AT&T has, opting
instead to form partnerships with content providers.
The company said earlier this week it would give its wireless
customers on unlimited data plans a year of free access to Walt
Disney Co.'s new streaming service, Disney+. The arrangement gives
Disney a large pool of viewers as it launches and could help
Verizon retain current customers and draw more subscribers to its
unlimited plans, a priority for the company.
Hans Vestberg, the carrier's chief executive, said the agreement
proved the model of partnering with top brands that Verizon had
decided to pursue.
UBS Group AG analysts estimate that there are about 17 million
Verizon wireless customer accounts eligible for the Disney+ offer.
The streaming service would normally cost $6.99 a month and is
scheduled to launch Nov. 12.
AT&T, meanwhile, is working on its own streaming video
service called HBO Max that it plans to unveil next week and
formally launch next year. AT&T has aggressively pursued
content ownership and creation and is in the throes of a battle
with activist Elliott Management over its strategy.
Verizon had 118.65 million wireless connections, including
tablets, smartwatches and other devices, up from 118.12 million at
the end of June.
Verizon's cable offering, Fios video service, continued to lose
customers. It shed 67,000 customers in the third quarter.
Overall, net income attributable to Verizon was $5.19 billion,
up from $4.92 billion a year earlier. Quarterly revenue edged up
slightly to $32.9 billion from $32.6 billion a year ago.
Revenue within Verizon's media unit, which includes the Yahoo
and AOL properties it acquired, was $1.8 billion, down 2% from a
year ago.
Verizon shares rose 0.8%, to $61.07, in premarket trading.
Write to Sarah Krouse at sarah.krouse@wsj.com
(END) Dow Jones Newswires
October 25, 2019 09:11 ET (13:11 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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