Boston, MA 10/18/2013 (wallstreetpr) – Verizon Communications Inc. (NYSE:VZ) reported its quarterly earnings data that indicated that wireless customer-growth was a little below analyst expectations. However, its venture with Vodafone posted very good revenue and profit growth even as customers spent more on internet based mobile services. The company has also agreed to buy-out Vodafone’s 45% share in the joint-venture.
What caused a bit of a worry for the company was the drop in subscribers as it indicated that it was losing market share to competitors like T-mobile. The company’s financials were pretty strong but the resurgent TMUS has had an adverse effect on the company.
Fran Shammo, the company’s Chief Financial Officer said that few lower-spend customers have transitioned to rival service providers. He said that despite this, the company is still gaining market share. What was a little surprising was the fact that he blamed the subscriber shortfall on the shortage of Apple’s iPhone 5S. Approximately 50% of the company’s activations in the quarter were iPhones and it amounted to around 3.9M iPhone activations. He stated that the shortage of this device is a major concern in the quarter. He added that the 8.4% service revenue-growth at Verizon was definitely sustainable in the short-term, but the concerns about future sustainability continue.
Verizon Communications Inc. (NYSE:VZ) added 927,000 net retail-subscribers in the quarter in comparison with the analyst projections of around 1M customers. A large part of the company’s growth came from customers who were connecting with devices like tablets. The company said that to date, mobile customers still accounted for a larger percentage of its growth. Without providing any specifics, the company said that it expects a sequential improvement in customer growth in the Q4.
In Thursday’s trading session, the opening price of Verizon Communications Inc. (NYSE:VZ) shares was $48.57 which rose to an intraday high of $49.24 and dipped to a close of $48.90.