Verizon cuts profit view as higher prices hit subscriber growth

[July 22, 2022]  (Reuters) - Verizon Communications Inc on Friday cut its annual adjusted profit forecast after adding fewer-than-expected monthly bill-paying phone subscribers in the second quarter, a sign that red-hot inflation has begun impacting its business.

A person walks by a Verizon store in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly/File Photo

Telecom companies, including Verizon and rival AT&T, have increased prices for their plans to cushion the impact of higher input costs. The price hike by Verizon in June by way of additional charges was over and above its already pricier plans.

The wireless carrier added only 12,000 net phone subscribers who pay a monthly bill in the quarter compared with FactSet estimates of 150,800 additions. In the first quarter, Verizon had lost about 36,000 subscribers.

The company now expects 2022 adjusted earnings per share in the range of $5.10 and $5.25 per share, lower than the prior outlook of $5.40 to $5.55.

(Reporting by Chavi Mehta and Eva Mathews in Bengaluru; Editing by Arun Koyyur)

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