(Reuters) -Verizon Communications said on Monday it lost fewer wireless subscribers than expected in the first quarter thanks to its flexible plans and streaming plans offering discounted prices for services such as Netflix and Warner Bros. Discovery’s Max.
Shares of the American telecommunications company rose 2.5% in premarket trading.
Between January and March, the company lost 68,000 monthly wireless subscribers, a seasonal slowdown for the industry after the holiday quarter.
That compares to an estimated loss of 100,000 people, according to FactSet, and a loss of 127,000 people in the first quarter of 2023.
The New York-based company said last month that a majority of its customers were opting for its premium, customizable myPlan option, which has resonated well with consumers.
Verizon has also partnered with streaming services to attract customers. As of last Thursday, its latest promotional package includes six months of free access to Disney services for new and existing customers on select plans.
In December, it began offering discounted subscriptions to Netflix and Max on select myPlan plans.
Verizon’s consumer business had its best first-quarter performance since 2018, with 158,000 net losses of postpaid wireless retail phones, compared to 263,000 losses a year ago.
“We are on track to meet our financial guidance and generate positive postpaid phone net sales for the year,” said CEO Hans Vestberg.
The company reported revenue of $33 billion for the quarter, compared to an LSEG estimate of $33.24 billion, as phone upgrade levels continue to decline.
Customers are showing a clear preference for holding on to their phones for long periods of time amid economic uncertainty and a lack of major new features, analysts say.
Verizon’s projects normally cost more than those of rivals such as AT&T and T-Mobile, which are expected to report results later this week.
Excluding items, the company reported earnings of $1.15 per share, beating LSEG’s estimate of $1.12 per share.
(Reporting by Harshita Mary Varghese; Editing by Pooja Desai)
