Verizon Lost fewer Than Expected Subscribers in First Quarter

Verizon Communications lost fewer monthly subscribers than expected in the first quarter. This is a sign that wireless carriers are benefiting from significant investments in 5G services and the deployment of new broadband networks.

The New-York based company reported a loss of 36,000 monthly phone subscribers in the first quarter, less than the estimate of Factset, which stood at 49,300. It said that the total revenue rose 2.1% to $33.6 billion for the first quarter. 

Strong demand for high-speed Internet to promote hybrid work and education has boosted telco revenue, but analysts expect rapid growth will start to ease as the pandemic loses its grip on the world.

Verizon is gaining customers through plans that bundle more services. Demand for fixed wireless access (FWA), or home broadband, delivered over 5G networks has also grown steadily in recent quarters.

However, the net income of the company fell 12.4% to $4.7 billion in the first quarter. The company said that it has included a pre-tax loss from special items of around $5.1 billion, including a pre-tax loss of around $1.2 billion from early debt redemption costs.