Verizon adds subscribers in the fourth quarter. Shares fall on disappointing prospects

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In the quarter ended December, Verizon added 41,000 wireless postpaid phone subscribers in its consumer division.

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Verizon Communications

on Tuesday released its fourth-quarter results, which showed an increase in subscribers following losses in previous quarters, suggesting broader adoption of the plans.

Verizon (ticker: VZ) reported the addition of 41,000 wireless postpaid phone subscribers in its consumer products division in the quarter ended December, after losing 189,000 in the third quarter and 215,000 in the second quarter..

The company added 416,000 broadband users in the fourth quarter, its best in more than a decade and surpassed 377,000 additions in the third quarter.

The consumer segment faced problems due to rising prices. Verizon has raised its account administration fees by $1.35 per voice line per month to $3.30 per line, which began showing up in the last few days of the second quarter.

However, shares remained in the red in premarket trading, falling 2.6% to $38.60 on the results.

The outlook was a problem. The telecoms giant said it expects adjusted earnings per share of $4.55 to $4.85 for all of 2023, below Street’s expectations of $4.96. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) are expected to be between $47 billion and $48.5 billion, also lower than the expected $48.66 billion.

Excluding one-off items, Verizon reported earnings of $1.19 per share, in line with analyst expectations for the fourth quarter but lower than the $1.31 per share reported a year ago. Revenue of $35.3 billion came in slightly higher than analysts’ forecast of $35.1 billion.

Email Karisma Vanjani at [email protected]

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