Verizon revenue falls short, says strike to hit profit

The entrance to a Verizon wireless store is seen in New York, in this May 12, 2015, file photo.

Reuters/Shannon Stapleton/Files

Verizon Communication Inc reported a smaller-than-expected rise in quarterly revenue as it discounted heavily to win customers and said it expected the ongoing strike by its wireline workers to hit earnings in the current quarter.

However, the No. 1 U.S. wireless carrier stood by its full-year profit forecast. The company said in January that 2016 adjusted earnings would be at a level comparable to 2015.

Verizon’s shares fell 1.6 percent in premarket trading on Thursday.

The company reported strong subscriber additions for the first quarter ended March 31, adding 640,000 wireless retail postpaid subscribers.

That was well above analysts’ average estimate of 480,000, according to market research firm FactSet StreetAccount.

Customer defections, known as churn, in Verizon’s wireless postpaid business dipped to 0.96 percent from 1.03 percent a year earlier.

Total operating revenue rose 0.6 percent to $32.17 billion, falling short of analysts’ average estimate of $32.46 billion, according to Thomson Reuters I/B/E/S.

Net income attributable to the company rose to $4.31 billion, or $1.06 per share, in the first quarter, from $4.22 billion, or $1.02 per share, a year earlier.

(Reporting by Sai Sachin R; Additional reporting by Kshitiz Goliya in Bengaluru; Editing by Shounak Dasgupta and Don Sebastian)