As a result of promotions and the United States wireless carrier’s high-speed 5G network, Verizon (VZ.N.) was able to recruit more customers than planned in the third quarter of a highly competitive telecom industry. As a result of this, Verizon improved its yearly free cash flow prediction on Tuesday.
The business anticipates that its yearly free cash flow (FCF) will be at least $1 billion more than its previous estimate, bringing the total amount to at least $18 billion.
Visible Alpha said the company’s FCF for the third quarter was $6.7 billion, which was much higher than the projections by more than $1.3 billion.
In premarket trading, the stock of the telecommunications business headquartered in New York saw a gain of more than 4%. The company’s success in raising prices and luring customers to higher-tiered unlimited plans drove this increase.
According to Factset, Verizon acquired 100,000 net monthly bill-paying cellular phone users in the third quarter, significantly more than the 63,600 additions that were anticipated. Verizon’s plans are normally priced higher than those of its competitors.
After the release of the iPhone 15, the firm has also sought to differentiate itself in the highly competitive market in the United States by using promotional products and trade-in incentives.
Competitor AT&T (T.N.) beat Wall Street’s expectations for new subscriber additions last week and increased its yearly projection for free cash flow (FCF).
On Wednesday, T-Mobile U.S. (TMUS.O) is expected to release its quarterly results.
According to statistics provided by LSEG, Verizon’s revenue dropped by 2.6% to $33.3 billion in the three months leading up to September. However, this figure aligned with experts’ average projection of $33.25 billion.