Verizon raises full-year profit forecast, misses subscriber forecasts

FILE PHOTO: A man stands next to the logo of Verizon at the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Sergio Perez/Photo File

(Reuters) – Verizon Communications Inc on Tuesday increased its 2019 profit forecast and beat Wall Street estimates for quarterly profit as it focuses on cost cuts, but the largest U.S. mobile provider, lost more phone subscribers than expected.

Verizon said it now expects a low single-digit percentage growth in the adjusted profit, after previously saying that her 2019 income would be similar to what it was a year earlier.

Jonathan Chaplin, an analyst at New Street Research, described in the results have been mixed, such as Verizon by the senior leadership seemed to be “entirely driven by below-the-line items.”

Shares of Verizon were down 1 percent to $57.80 in pre-market trading.

The company said it lost a net of 44,000 telephone subscribers who pay a monthly invoice in the first quarter, which was marked by a few large price-cut promotions. Analysts had expected a net loss of 25,000 subscribers, according to research firm FactSet.

Verizon has launched its 5G mobile network in two cities in the United States last month at an extra cost of $10 for customers with unlimited plans. The plan is to $17 billion to $18 billion this year to build its network.

Net income attributable to the company rose to $5.03 billion, or $1.22 per share, in the first quarter ended March 31, from $4.55 billion, or $1.11 per share, a year earlier.

On an adjusted basis, Verizon earned $1.20 per share, beating analysts estimates of $1.17, according to the IBES data of Refinitiv.

Total operating income rose about 1 percent to $32.13 billion euros during the quarter, falling slightly short of analysts estimates of $32.16 billion.

Reporting by Akanksha Rana, Bengaluru and Sheila Dang in New York; Editing by Bernard Orr, Anil D’silva and Susan Thomas

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