By Harshita Mary Varghese
(Reuters) -Verizon lost fewer-than-expected wireless subscribers and beat estimates for quarterly profit on Monday, thanks to its flexible plans and streaming bundles offering discounted pricing for services such as Netflix (NASDAQ:) and Warner Bros Discovery (NASDAQ:)’s Max.
The telecom firm lost 68,000 monthly bill-paying wireless phone subscribers between January and March – a seasonally soft period for the industry after the holiday quarter.
That compared with an estimated loss of 100,000, according to FactSet, versus a loss of 127,000 in the first quarter of 2023.
The New York-based company said last month that a majority of its customers were opting for its premium, customizable myPlan option, which has resonated well with consumers.
Verizon (NYSE:) has also partnered with streaming services to attract customers. Starting last Thursday, its latest promotional bundle includes six months of free access to Disney’s services for new and existing customers on some plans.
In December, it began offering discounted subscriptions to Netflix and Max with some myPlan bundles.
Verizon’s consumer business also saw its best first-quarter performance since 2018, with 158,000 wireless retail postpaid phone net losses, compared with 263,000 losses a year ago.
However, the company’s shares were down 3.3% in early trading, with one analyst pointing to growth challenges in the wireless industry.
“MyPlan helped them stem share losses, but it’s squeezing a balloon… it’s hard to construct a case where Verizon can grow longer term,” MoffettNathanson analyst Craig Moffett said.
“Wireless is a zero sum game.”
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Verizon reported revenue of $33 billion for the quarter, compared with an LSEG estimate of $33.24 billion, as phone upgrade levels continue to drift lower.
Customers are showing a clear preference for holding on to their phones for longer periods amid economic uncertainty and a lack of major new features, analysts have said.
Excluding items, the company reported a profit of $1.15 per share, beating an LSEG estimate of $1.12 per share.
