Thursday 1 August 2019 3:36 pm

Verizon beats profit estimates as it boosts phone subscribers

Verizon has posted better than expected profit for the second quarter thanks to strong growth in phone subscribers.

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The US telecoms provider said it added 245,000 phone subscribers over the quarter, compared to 199,000 in the same period last year.

Shares in Verizon ticked up just over one per cent following the announcement.

It comes a week after the US Justice Department approved a merger between Sprint and T-Mobile USA. The deal is set to create a new competitor close to the size of Verizon and rival AT&T.

Verizon has been focusing its efforts on rolling out 5G in the US, with plans to reach more than 30 cities by the end of the year.

Overall, the company’s operating revenue slipped 0.4 per cent over the quarter to $32.1bn (£26.5bn), while net profit dropped four per cent to $4.1bn.

“Verizon finished strong in the first half of 2019 by delivering solid financial results while transforming the business under the new operating structure and advancing our leadership in 5G,” said chairman and chief executive Hans Vestberg. 

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“We are focused on optimising our next-generation networks and enhancing the customer experience while we head into the second half of the year with great momentum.”

Main image credit: Getty