Verizon cuts profit view as higher prices hit subscriber growth
(Reuters) – Verizon Communications Inc on Friday minimize its annual adjusted revenue forecast after including fewer-than-expected month-to-month bill-paying cellphone subscribers within the second quarter, an indication that red-hot inflation has begun impacting its enterprise.
Telecom corporations, together with Verizon and rival AT&T, have elevated costs for his or her plans to cushion the influence of upper enter prices. The worth hike by Verizon in June by means of extra prices was over and above its already pricier plans.
The wi-fi service added solely 12,000 internet cellphone subscribers who pay a month-to-month invoice within the quarter in contrast with FactSet estimates of 150,800 additions. Within the first quarter, Verizon had misplaced about 36,000 subscribers.
The corporate now expects 2022 adjusted earnings per share within the vary of $5.10 and $5.25 per share, decrease than the prior outlook of $5.40 to $5.55.
(Reporting by Chavi Mehta and Eva Mathews in Bengaluru; Enhancing by Arun Koyyur)
