Verizon's Earnings Top Expectations

Verizon Communications Inc. added 565,000 of the wireless industry's most profitable customers in the first three months of the year, as its profit easily topped Wall Street expectations.

The country's largest wireless carrier has faced intense competition in the U.S. with rivals such as T-Mobile US Inc. and Sprint Corp. offering deals and paying subscribers to switch to their services.

Verizon had warned in March that wireless-service cancellations would be elevated in the first quarter.

However, for the quarter ended March 31, postpaid churn edged down to 1.03% from 1.07% a year ago.

Overall, Verizon posted earnings of $4.34 billion, or $1.02 a share, compared with $5.99 billion, or $1.15 a share, a year earlier.

Revenue grew 3.8% to $32 billion.

Analysts polled by Thomson Reuters had forecast 95 cents a share in earnings and $32.3 billion in revenue.

Verizon is the first big wireless carrier to report results for the first quarter.

Last week, Verizon said its FiOS service would offer new TV packages aimed at giving customers flexibility to purchase only certain groups of channels they want to watch. The move comes as pay-TV distributors such as Verizon are facing mounting pressure to give consumers more choice in how they buy TV.

In the latest quarter, Verizon added a net 90,000 FiOS video subscribers, up from 57,000 a year ago.

Write to Chelsey Dulaney at [e-mail]

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