Verizon reports wireless subscriber declines in Q1 2023

The company saw a decrease of 263,000 wireless retail postpaid phone net losses for its consumer business in the first quarter. It is the fourth decline on this metric in the last five quarters. The churn rate was 0.84%.

Verizon's earnings report follows that of AT&T Inc. from last week. AT&T recorded 424,000 postpaid phone net additions in the first quarter, which was in line with expectations, but lower than quarterly growth levels seen during 2022.

Verizon's gross wireless retail postpaid additions for the quarter were 3.2 million. Citi Research analyst Michael Rollins wrote that "Better consumer gross add sales activity is a positive reflection of its promotional responses and its refined segmentation strategy.

Despite the decline in its wireless subscriber base, Verizon's first-quarter net income of $5 billion was up 6.5% from the same quarter last year. However, its adjusted earnings per share of $1.20 was down from $1.35 a share a year before.

Verizon maintained its prior outlook, which calls for 2.5% to 4.5% growth in total wireless service revenue and $4.55 to $4.85 in adjusted earnings per share.

Verizon's consumer business revenue was $24.9 billion, "due to declines in wireless equipment revenue partially offset by gains in service and other revenue." The company's business segment posted 136,000 postpaid phone net additions and 137,000 fixed wireless net additions for the period. This could indicate that the company's efforts to focus on wireless and fixed wireless services are paying off, even as it faces headwinds from increasing competition and churn rates.