Wireless Network Operator Verizon Reports First Quarter Earnings, Loses 36,000 Monthly Phone Subscribers

On Friday wireless network operator Verizon reported its first-quarter earnings for 2022. The company lost 36,000 monthly phone subscribers in the quarter signaling that its huge investments in expanding its 5G and new broadband networks are starting to pay off.

Analysts, according to FactSet had expected Verizon to have a loss of 49,300 monthly phone subscribers in the quarter but Verizon reported fewer-than-expected losses for the quarter.

In the quarter, total revenue came in at $33.6 billion and was up 2.1 percent. It also surpassed Wall Street’s estimates of $33.54 billion, according to IBES data from Refinitiv. Earnings per share came in at $1.35 per share.

Companies like Verizon continue to experience strong demand for high-speed internet needed for various human endeavors such as education and work that have adapted a hybrid system but analysts say that this meteoric growth will start to fade as the pandemic continues to fade.

Verizon said it was able to pique the interest of customers with plans bundled with more services. It also mentioned that there has been a steady growth in the demand for fixed wireless access (FWA) or home broadband delivered through a 5G network. This, the company says has been growing from quarter to quarter.

Net income suffered a decline in the quarter. It fell 12.4 percent to $4.7 billion in the first quarter. This includes a pre-tax loss from special items of approximately $1.5 billion, including a pre-tax loss of approximately $1.2 billion from early debt redemption costs, Verizon said. The company also updated its full-year guidance, it now expects wireless service revenue growth to come in at the lower end of the previously guided range of 9% to 10%. It expects full-year earnings in the range of $5.50 to $5.55 per share.