Verizon Communications has lifted the lower end of its full-year adjusted earnings per share forecast and core profit in the telecoms group’s second quarter topped estimates, sending shares higher in premarket U.S. trading on Monday.
The company said it now expects to report annual per-share income growth of 1% to 3%, up from a prior range of 0% to 3%, thanks in part to solid demand for its higher-tier plans. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is also seen increasing by 2.5% to 3.5%, versus 2% to 3.5% previously.
Quarterly adjusted EBITDA rose by 4.1% versus a year ago to $12.8 billion. Bloomberg consensus estimates had seen the figure at $12.67 billion. Group-wide operating revenue ticked up by 5.2% year-over-year to $34.5 billion, above a prior mark of $33.76 billion.
Wireless service revenue jumped by 2.2% to $20.9 billion, bolstered in part by customers choosing options that include features like access to streaming platforms.
Verizon (NYSE:VZ) has also been rolling out promotions in a bid to persuade customers not to defect to rivals like AT&T (NYSE:T) and T-Mobile or broadband providers like Comcast (NASDAQ:CMCSA) and Charter. The firm previously delivered underwhelming subscriber numbers in the first quarter, exacerbating worries over an intensifying fight for a limited pool of new customers.
In the April to June period, monthly bill-paying wireless subscribers slipped by 9,000, versus projections for 13,000 additions, according to FactSet data cited by Reuters. Broadband net additions came in at 293,000, reflecting Verizon’s increased focus on internet services.
