Verizon's flexible 5G plans lift wireless subscriber additions above estimates
Oct 22 (Reuters) -Verizon VZ.N added more wireless subscribers than expected in the third quarter as the U.S. telecom giant'spromotional offers and plans that bundle 5G with streaming services like Netflixhelped attract customers.
Growing adoption of the company's myPlan, a customizable offering thatincludes streaming perks such as Disney+, Hulu and Maxfor an extra cost, has helped Verizon stay resilient in the competitive U.S. telecom market.
The companyadded 239,000 net monthly bill-paying wireless phone subscribers in the September quarter, compared with expectations of218,100 additions, according to FactSet. It posted 148,000 additions for the June quarter.
Postpaid phone churn, or the number of customers canceling the service monthly, was 0.89% in the third quarter, slightly higher than0.85% in the second quarter.
Withthe U.S. wireless market nearing saturation, Verizon and its rivals havebeen looking to expand theirhigh-speed internet business to tap increasing data use by customers. The company agreed to buy fiber-optic internet provider Frontier Communications FYBR.O last month in a $20 billion deal.
Verizon'sfixed wireless service, which sends signals to a device in a home or business over airwaves, added 363,000 customers to hit a total of nearly4.2 million, meeting its goal of 4 to 5 million subscribers more than a year ahead of schedule.
But its total revenue of $33.3 billion came in slightly below analysts' expectations of $33.43 billion, according to data compiled by LSEG.
That was largely driven by declines in the company's wireless equipment revenue, as customers dialing back spending amid high interest rates led to fewer phone upgrades.
Net income fell to $3.4 billion from $4.9 billion a year ago, hit by severance charges of $1.7 billion from avoluntary separation program and other headcount reduction initiatives.
Telecom rivals AT&T T.N and T-Mobile TMUS.O are slated to report third-quarter results on Wednesday.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Devika Syamnath
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