Verizon loses wireless phone customers, gains tablet users, posts $4B profit

Verizon Communications Inc. reported its fifth consecutive quarter of double-digit percentage growth in operating income, but lost cell phone subscribers, according to an earnings report released by the country's largest wireless carrier on Thursday.

Verizon (NYSE: VZ) said it lost about 138,000 net postpaid phone customers in the first quarter, but more than offset that loss by adding 634,000 tablet users.

The telecom titan’s profit more than doubled to $3.95 billion in the first quarter, and its revenue rose 5 percent to $30.8 billion, compared to the first quarter of 2013.

New York-based Verizon is a major force in North Texas, with more than 7,000 employees in the region and a large corporate office in Irving. The Dallas Business Journal compared Verizon, AT&T, Sprint and T-Mobile’s networks and the struggle for new subscribers in "Wireless Wars" in this week’s print edition.

Dallas-based AT&T (NYSE: T), which reported earnings Tuesday, added more than 1 million wireless customers in the first quarter of 2014, including 625,000 who signed up for long-term contracts. AT&T posted quarterly profits of $3.7 billion — essentially unchanged from its year-ago numbers — and its revenue rose 3.6 percent to $32.5 billion.

The U.S. wireless industry is essentially a four-horse race. About two of every three wireless subscribers uses Verizon or AT&T, with T-Mobile and Sprint jockeying for the rest.

Verizon’s first quarter results included the $130 billion transaction to acquire full ownership of Verizon Wireless, of which joint-venture partner Vodafone Group PLC of the U.K. previously owned 45 percent.

“The full access we now have to the significant cash flows of Verizon Wireless is energizing our efforts to provide customers with product and service innovations and to enable powerful solutions to some of the world’s biggest challenges,” Lowell McAdam, Verizon chairman and CEO, said in a statement.

Verizon reported $1.15 in earnings per share in first-quarter 2014, compared with 68 cents per share in first-quarter 2013.

I am not surprised that Verizon is losing cellphone customers. Their pricing is no longer competitive.

I was a happy Verizon customer, then my monthly rate was tripled. I moved on to Tracfone, which is perfect for people like us that use a low volume of minutes per month. I am now paying under $30 per month for 4 phones. Verizon was charging me over $70.00 for 2 phones.

Try Consumer Cellular also. Just switched to them from T-Mobile. Saving 10 bucks a month. I believe they are the ATT network.

Yeha verizon is horrendous on their prices. Wish I didnt travel so much so I could use tracfone or something similiar.

3 posted on 04/25/2014 7:31:58 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)

I have Sprint and I'm happy with them. Verizon has been bombarding me with advertising and unwanted visitors trying to sell me phone, Internet and tv services. I decoded a long time ago that no matter what a business is offering, I won't buy if they continue to harass me.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.