Verizon Communications It said Monday that it lost fewer wireless subscribers than expected in the first quarter thanks to its flexible plans and streaming bundles that offer discounted prices for services such as… Netflix And Discover Warner BrosMax.
Shares of the American telecommunications company rose 2.5% in pre-market trading.
It lost 68,000 monthly bill-paying wireless subscribers between January and March — a seasonally weak period for the industry after the holiday quarter.
That compares to a loss of $100,000, according to FactSet, and a loss of $127,000 in the first quarter of 2023.
The New York-based company said last month that the majority of its customers chose the premium, customizable myPlan option, which resonated well with consumers.
Verizon has also partnered with streaming services to attract customers. Starting last Thursday, its latest promotional package includes six months of free access to Disney services for new and existing customers on some plans.
In December, it began offering discounted Netflix and Max subscriptions on some myPlan packages.
Verizon's consumer business saw its best first quarter performance since 2018, with net losses of 158,000 postpaid wireless retail phones, compared to 263,000 losses a year ago.
“We are on track to meet our financial guidance and deliver positive additions to the postpaid consumer phone network for this year,” said CEO Hans Vestberg.
The company reported revenue of $33 billion for the quarter, compared to LSEG's estimate of $33.24 billion, as phone upgrade levels continued to decline.
Customers are showing a clear preference to hold on to their phones for longer periods amid economic uncertainty and a lack of key new features, analysts said.
Verizon plans usually cost more than competitors like AT&T And T-Mobilewhich is scheduled to announce its earnings later in the week.
Excluding items, the company reported earnings of $1.15 per share, beating LSEG estimates of $1.12 per share.
