Verizon Wireless adds 640K net new postpaid subscribers in Q1; churn rate falls to .969
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.