The largest wireless carrier in the United States learned a bit about the underlying economy during the third quarter. After raising management fees for postpaid subscribers by $1.35 to $3.30 per voice line, the number of consumer postpaid phone subscribers declined by 189,000 year-over-year during the third quarter with a momentum of 0.8%. Momentum is the percentage of subscribers (sometimes in a certain category) who leave one carrier for another and has risen in the quarter due to higher management fees.
53% of Verizon subscribers own a 5G-capable device
53% of consumer Verizon subscribers have a 5G phone
On the business side, Verizon added 197,000 new postpaid subscribers in the three months. This has allowed it to register its fifth consecutive quarter with at least 150,000 new postpaid phone subscribers in its business unit. The volatility in the postpaid phone business in the business sector was 1.10%. Business Wireless Group revenue increased 5.7% year over year to $3.3 billion. The increase is due to higher prices and growth in the customer base.
“We took a number of actions in the third quarter that helped improve operational and financial performance, but we know there is still more work to be done,” said Verizon Chairman and CEO Hans Vestberg. “The pricing actions we took earlier. This year, also as our new cost-saving program, has shown that we are thoughtful and strategic in our decisions to enhance our business.At the same time, we are focused on implementing our 5G strategy, as we cover every major market and accelerate C-Band network construction.We are on the way correct to reach 200 million pops in the first quarter of 2023.”
Ellis also said that “the actions we have taken in the past two quarters are gaining momentum in the market. We expect to be able to build on that momentum going forward. Our financial discipline, combined with our healthy balance sheet, has enabled us to increase our earnings for the 16th consecutive year, which is The longest current streak of increasing profits in the US telecom industry.
Verizon shares hit their lowest price in more than a decade
Overall, Verizon reported third-quarter revenue of $34.2 billion, a 4% increase over total revenue collected during the same quarter last year. Net income of $5.02 billion decreased 23.3% from $6.55 billion in net income reported during the third quarter of 2021. Diluted earnings per share decreased 24.5% from $1.55 during the third quarter of last year to $1.17 in the third quarter of This year.
Verizon already suffered a pre-tax loss of $881 million which included adjusting its pension obligations to reflect current stock pricing and adjusting certain assets related to the acquisition of TracFone.
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