Verizon reported 12,000 net phone subscribers addition (who pay a monthly bill) in the quarter ended June 30, weaker than expectation of 150,800 additions (FactSet estimates).
Chief Executive Hans Vestberg indicated during the earnings call (according to a transcript from Sentieo ) that inflation dampened customer additions at a time when the carrier is facing intense competition in the U.S. telecom sector.
Hans Vestberg also mentioned that Verizon “adjusted prices for some legacy metered plans, increasing revenue per plan while motivating step-ups to our unlimited offerings.” Vestberg expects such actions to drive “improved performance” later this year and into 2023.
The company projects 2022 adjusted earnings per share in the range of $5.10 and $5.25 per share, lower than the prior forecast of $5.40 to $5.55. According to Finance chief Matt Ellis, while the pricing actions already implemented are expected to contribute around $1 billion in the second half of 2022, the effect could be offset by increased promotional activities to boost subscriber base – hence the cut in profit forecast.