(Reuters) – Verizon Communications Inc. (CH.(N) beat Wall Street estimates for third-quarter profit and revenue on Friday as the largest U.S. wireless carrier by subscribers, signed up for mobile-phone customers, who pay a monthly bill in this way.
FILE PHOTO: A man stands next to a logo of Verizon on the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Sergio Perez/Photo File
The company’s strategy to focus on its core wireless business, is often in stark contrast to that of AT&T’s (T. N), its biggest competitor’s, which has invested in media content, in order to increase the growth of the company.
Meanwhile, rivals T-Mobile US Inc (TMUS.(O) and Sprint Corp (S. N), have been locked in a long merger process.
It is in the district and launched four new tariff plans for unlimited packages starting at just $35, a strong push to get more subscribers.
The company is also preparing for the roll-out of 5G in more than 17 towns and cities by the end of the year, as wireless carriers look to expand aggressively in order to dominate the mobile technology, which promises movie downloads in a few seconds.
By 2021, the number of 5G connectivity, it is forecast to reach between 20 million and 100 million, according to research firm Statista.
In the third quarter, It added 615,000 post-paid customers, and, above analysts ‘ estimates, 527,000, according to research firm FactSet.
Analysts are paying special attention to (post-paid), or a recurring bill, because they are more valuable to the carriers, as well as the tendency to stay with the company longer than that of prepaid customers.
Revenue at Verizon’s media unit slipped 2% to $1.8 billion from a year earlier.
It was recently sold to the social media platform, Tumblr, as part of its efforts to the renovation of the unit, It, Media, that, also, homes, Yahoo, huffington post, and TechCrunch.
Net income rose to $5.34 billion, or $1.25 per share for the third quarter ended Sept. 30, from $5.06 billion, or $1.19 per diluted share, a year earlier.
Excluding items, It earned $1.25 per share, edging past analysts ‘ average estimate of $1.24, according to IBES data, Refinitiv.
Total operating revenue increased by nearly 1%, to $32.89 billion, beating the estimate of $ 32.75 billion.
The company’s shares were marginally higher in the premarket trading.
Reporting by Neha Malara in Bengaluru; Editing by Anil D’silva and Sriraj Kalluvila