Verizon Wireless adds 640K net new postpaid subscribers in Q1; churn rate falls to .96

Verizon Wireless adds 640K net new postpaid subscribers in Q1; churn rate falls to .96
Earnings season is here. Verizon Wireless reported today that it added 640,000 net postpaid subscribers during the first quarter. That topped Wall Street expectations of 480,000 to 491,000 net postpaid adds. This reveals the underlying strength of Verizon's business in the period. The retail postpaid churn of .96 was very good, improving on the 1.03 reported a year ago.

Despite expectations that it would lose a substantial number of postpaid phone customers during the three month period, Big Red lost only 8000 names from that roll. If Donald Trump is the Teflon presidential candidate, Verizon is the Teflon carrier able to absorb everything that Sprint and T-Mobile throws at it.

Revenue for the quarter was down 1.5% at $22 billion. Capital expenditures declined by 9.5%  to $22 billion during the quarter, lower than Wall Street estimates. Still, Verizon warned that this figure will be rising over the course of the year. LTE data traffic surged 50% year-over-year while 92% of such traffic traveled over Verizon's 4G LTE network. CFO Fran Shammo said that Verizon intends to be the first major U.S. carrier to employ 5G with commercial rollouts beginning next year.

Not all Wall Streeters were bullish with the results. New Street Research wrote in a report that it is bearish on Verizon Wireless since it has less spectrum than its rivals compared to the number of subscribers it serves.

source: FierceWireless



1. cripton805

Posts: 1485; Member since: Mar 18, 2012

I dont really understand the way capitalism and the financial system works. I mean a company cant always have "rising" profits. I can see a company that always has profits. Whether its more or less every year, but that makes investors run and bring the company down dry. Which makes why our economy is s*** and so focused on the top 1%. Due to cutting salaries and jobs to show these "profits". Here in the US. The middle class is non existant now because youre so deep in debt up to your eyeballs by the time you pay it off and you can barely retire before you die. Better off to live on Obamacare and government aid. smh... Maybe? At least you will be free. Have a decent used car. Free healthcare. Free food. Free cell service, etc... Honestly. Our economy and financial system needs reform.

6. johnbftl

Posts: 283; Member since: Jun 09, 2012

Free healthcare? The Affordable Healthcare Act, or Obamacare, as it's been dubbed is not free. It's actually driven up the cost off healthcare and forced many companies to decide on employing a majority of their workforce as part-time to avoid subsidizing insurance. All it did was mandate every state to offer health insurance independent of employers and levy a tax penalty on anyone unable to provide proof of health coverage when filing federal income taxes.

9. tuminatr

Posts: 1179; Member since: Feb 23, 2009

agreed but this has nothing to do with verizon

2. jsjammu

Posts: 169; Member since: Nov 13, 2014

I hear that you are saying but if you owned stock of a specific company you might feel differently.

3. natypes

Posts: 1110; Member since: Feb 02, 2015

Yet they keep adding fees to everything. Supposedly another $20 fee coming to udp contracts in May.

4. emcdonald75

Posts: 169; Member since: Nov 07, 2012

I thought Fran Shammo was CFO of Verizon, not T-Mobile?

5. TerrellAmerica unregistered

He is

7. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

He is reffering to a typo in the Article

8. PhoneCritic

Posts: 1382; Member since: Oct 05, 2011

Any day now a large scandel will be uncovered at VZW - where we will learn that someone was cooking the books. Because no company ever has continuous profits for years without some quarters of losses. We tend to see this in investment firms ( Bernie Maddoff ) and high flying IPOs ( Global Crossing, MCI Worldcom, etc.. ) Something Just does't sound right.

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