Verizon revenue beats as promotions help attract postpaid users
By Devika Krishna Kumar
(Reuters) - Verizon Communications Inc reported better-than-expected quarterly revenue and profit as heavy promotions helped the company attract postpaid subscribers amid the launch of Apple Inc's new iPhones.
The largest U.S. wireless service provider has been facing stiff competition from companies such as T-Mobile US Inc and Sprint Corp, who have been offering massive discounts on call and data plans.
Apple launched the iPhone 6S and 6S Plus in September, triggering heavy promotional activity in the telecoms industry towards the end of the third quarter.
Verizon shares rose about 2 percent in premarket trading on Tuesday.
The company net added 1.3 million wireless retail postpaid subscribers in the quarter compared with 1.1 million in the second quarter.
Drexel Hamilton analyst Barry Sine said the subscriber numbers were slightly better than expected.
However, Verizon's average revenue per account (ARPA) declined to $152.38 from $153.73.
As its ARPA comes under pressure, Verizon is entering new markets such as mobile video and "Internet of Things" - the concept of connecting everything from industrial machines to household devices to the Internet - to boost its earnings. Continued...