Verizon Wireless recently released its third quarter results, which showed the mobile operator soundly meeting and exceeding estimates set by various analysts. For Q3 2017, the Big Red registered a service revenue of $ 15.8 billion, beating the $ 15.7 billion projected by Wells Fargo. The biggest carrier in the United States also managed to record retail postpaid phone net additions of 274,000 (which easily surpassed the 170,000 predicted by analysts), as well as report overall postpaid net additions of 603,000 (comfortably outpacing the 438,000 projected by StreetAccount).
Apart from reporting significant postpaid phone additions, Verizon Wireless also gained 91,000 tablet net additions and 238,000 net additions of wearables and other connected devices. During the third quarter of last year, the company suffered a loss of 107,000 postpaid accounts, but the carrier has since rebounded a year later by acquiring 30,000 postpaid accounts. When it came to prepaid, Verizon gained 139,000 prepaid net additions.
In terms of customer turnover, the Big Red registered a retail postpaid churn of 0.75 percent for Q3 2017. This marks the tenth consecutive quarter in which it has reported a retail postpaid churn of not more than 0.9 percent.
Verizon has also reported that for Q3 2017, an estimated 78 percent of its postpaid phone base is on unsubsidized service pricing plans. During the same quarter last year, that figure was only at 60 percent. As for the percentage of phone activations on device payment plans, it has remained steady at 77 percent, which is the same as the percentage reported for Q2 2017.
Earnings-wise, the third quarter of the year saw Verizon post an earnings before interest, tax, depreciation and amortization (EBITDA) figure of $ 9.97 billion for its wireless business, exceeding the $ 9.67 billion estimated by Wall Street. The company’s third quarter service margin of 62.9 percent not only outpaced analysts’ projections, but also marked the second consecutive quarter in which Verizon held the highest service margin among all US-based wireless service providers.
Source: Fierce Wireless