Verizon warns of 'soft' subscriber growth on strong competition, shares fall

Reuters

Updated Tue, Mar 11, 2025, 6:42 AM 2 min read

(Reuters) - Verizon (VZ) warned connected Tuesday that first-quarter subscriber maturation would apt beryllium "soft" arsenic rival carriers pull customers with promotions, sending its shares down early.

The U.S. wireless elephantine pulled backmost connected lawsuit incentives aft the promotion-heavy December quarter, but rivals did not, intensifying competition, Chief Revenue Officer Frank Boulben said astatine Deutsche Bank's Media, Internet & Telecom Conference.

American telecom firms person leaned connected incentives successful a fierce conflict for customers arsenic maturation slows successful a saturated market. That has boosted subscriber maturation but raised worries astir profits.

Shares of Verizon rival AT&T were down 4.5% arsenic it besides said it saw elevated subscriber churn successful January, portion T-Mobile US was down 2.1%.

Verizon has besides seen "a dilatory start" to telephone upgrades successful the archetypal quarter, a motion that customers were continuing to clasp backmost connected purchases amid increasing worries astir the U.S. economy.

Still, the institution expects to adhd much monthly-bill paying wireless subscribers successful 2025 than the astir 900,000 subscribers it added past year, arsenic it benefits from its customizable myPlan.

The comments travel a beardown 4th fourth for U.S. telecom firms, wherever plans bundling 5G services with high-speed fibre data, arsenic good arsenic streaming services, helped pull customers.

Verizon besides said it did not expect a large deed owed to the tightening successful U.S. immigration.

"We expect precise constricted interaction connected the postpaid broadside wherever customers person got to supply immoderate signifier of recognition to get onto a contract. So if determination is immoderate impact, we volition spot it towards the debased extremity of the prepaid market," Boulben said.

Since taking bureau successful January, President Donald Trump has kicked disconnected a sweeping migration crackdown, tasking the U.S. subject with aiding borderline information and issuing a wide prohibition connected asylum.

(Reporting by Priyanka.G successful Bengaluru; Editing by Leroy Leo)