Verizon Reports Unexpected Loss of 289,000 Phone Subscribers

Verizon Communications reported first-quarter earnings and revenue that exceeded analysts' expectations, with adjusted earnings per share of $1.19 and operating revenue of $33.5 billion. Despite this, the company lost 289,000 retail postpaid phone subscribers, a figure considerably worse than analyst projections and attributed to increased competition, recent price hikes, and reduced spending by government agencies. The subscriber loss marked a sharp reversal from gains in the previous quarter and was further exacerbated by aggressive promotions from rivals like AT&T and T-Mobile. To address customer retention, Verizon implemented a three-year price guarantee in April and reaffirmed its full-year guidance for wireless service revenue growth. The company noted that while price increases helped boost wireless service revenue 2.7% year-on-year, they also led to higher customer churn than anticipated. Verizon remains confident in its business strategy despite challenges in the saturated wireless market.