logo
Verizon posts higher subscriber loss on price hikes, competition

Verizon posts higher subscriber loss on price hikes, competition

Yahoo22-04-2025

(Reuters) -Verizon Communications lost more wireless subscribers in the first quarter than Wall Street expected, as the U.S. telecom giant grappled with the fallout of recent price hikes and aggressive promotions from rivals.
The company warned in March that off-season promotions by AT&T and T-Mobile would result in "soft" subscriber growth, fueling fears about intensifying competition in an industry vying for a limited pool of new subscribers.
It also raised monthly prices for its customizable myPlan accounts with five lines or more by $3 per line, while customers on the New Verizon Plan faced a $4 per line increase for single mobile lines.
That led to a higher churn, percentage of customers exiting a service, with Verizon reporting a loss of 289,000 monthly bill-paying wireless subscribers in the first quarter, after it added a record 568,000 customers in the December quarter.
Analysts had expected the company to lose 166,400 subscribers, according to FactSet data.
The company introduced a three-year price guarantee in early April to lock in customers for its myPlan and myHome offerings.
It also reaffirmed its annual adjusted profit and free cash flow outlook, a sign it was confident in its business plans amid economic uncertainty.
In the first quarter, total revenue grew 1.5% to $33.5 billion, edging past analysts' estimates of $33.24 billion, according to data compiled by LSEG.
Wireless service revenue grew 2.7% to $20.8 billion, helped by the price hikes implemented by the company.
Verizon's consumer business added 137,000 wireless retail core prepaid customers, compared to 131,000 net losses a year ago, marking its best net additions since the acquisition of TracFone.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Longtime Motel 6 spokesman Tom Bodett sues chain over using his name, voice
Longtime Motel 6 spokesman Tom Bodett sues chain over using his name, voice

Yahoo

time34 minutes ago

  • Yahoo

Longtime Motel 6 spokesman Tom Bodett sues chain over using his name, voice

By Jonathan Stempel NEW YORK (Reuters) -Tom Bodett, known for his radio and TV ads telling travelers that at Motel 6 "we'll leave the light on for you," has sued the motel chain for using his name and voice without permission, after their nearly four-decade relationship broke down. In a complaint filed on Monday night in Manhattan federal court, Bodett said he cut ties with Motel 6 after its new owner, India-based OYO, missed a $1.2 million annual payment due on January 7 under their contract, which was to end in November. Bodett said Motel 6 nonetheless kept using his name and voice on its national reservation phone line, violating his rights under the contract and federal trademark law. The 70-year-old author and voice actor is known for appearances on National Public Radio and in several Ken Burns documentaries, as well as for his smooth baritone. Bodett said he tried negotiating a confidential settlement that would recognize his role in building Motel 6, not hurt its image or franchisees, and provide "graceful closure," but the chain responded only with "misrepresentations, obfuscations, and delay tactics." The lawsuit seeks $1.2 million, plus additional unspecified damages and a share of profits. Motel 6 had no immediate comment on Tuesday. Bodett had been Motel 6's lead spokesman since 1986, and said he coined "we'll leave the light on for you" as an ad-lib. Motel 6 has more than 1,450 locations in the United States and Canada, according to its website. OYO is a global travel technology unit of Oravel Stays, which bought Motel 6 from Blackstone Real Estate for $525 million in December. The case is Bodett et al v G6 Hospitality LLC et al, U.S. District Court, Southern District of New York, No. 25-04854.

Brazil's inflation undershoots forecasts ahead of rate decision
Brazil's inflation undershoots forecasts ahead of rate decision

Yahoo

time40 minutes ago

  • Yahoo

Brazil's inflation undershoots forecasts ahead of rate decision

SAO PAULO (Reuters) -Brazil's inflation rate slowed more than expected in May but the 12-month gauge remained well above the central bank's target range, data from statistics agency IBGE showed on Tuesday. Consumer prices as measured by the benchmark IPCA index rose 0.26% last month and 5.32% in the 12 months through May, IBGE said, undershooting forecasts of 0.33% and 5.40% in a Reuters poll of economists. The data marked a decline from April's 0.43% monthly rate and 5.53% for the 12-month reading, though the latter still exceeded the official target of 3% plus or minus 1.5 percentage points. Two of the nine groups surveyed posted price decreases in May, IBGE said, including transport as airfare and fuel costs edged down. Food and beverage price increases, which are closely watched, slowed on a monthly basis, from 0.82% in April to 0.17% in May. The figures came in ahead of the central bank's interest rate-setting meeting on June 17-18, with policymakers vowing "flexibility and caution" after hiking their benchmark interest rate by 50 basis points to 14.75% last month.

Former Expedia CEO Peter Kern to buy Italian lingerie company La Perla
Former Expedia CEO Peter Kern to buy Italian lingerie company La Perla

Yahoo

timean hour ago

  • Yahoo

Former Expedia CEO Peter Kern to buy Italian lingerie company La Perla

ROME (Reuters) -Peter Kern, the former chief executive of U.S. travel technology company Expedia, will buy troubled Italian luxury lingerie company La Perla, Italy's industry minister said on Tuesday. Kern, through his luxury holding LLC, has submitted the best offer for the firm, Industry Minister Adolfo Urso said at a meeting with trade unions and the future new ownership. Kern has committed to invest around 30 million euros ($34.31 million) by 2027 and to relaunch La Perla's production site in the northern city of Bologna, Urso said in a statement. The industrial plan presented by Kern provides for the maintenance of employment levels - around 210 people - and about forty new hires, the minister said. ($1 = 0.8745 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store