Verizon Wireless may not have gained as many new sign ups as some industry watchers have forecasted, but the major wireless carrier did managed to stop the bleeding by minimizing the number of customers switching to competitor networks during the first quarter of 2015.
During the last quarter, Verizon Wireless started to show some vulnerability under the aggressive marketing strategies and pricing tactics of its rival carriers. But in the first quarter of this year, the still-leading carrier in the United States is slowly getting back to its dominant ways.
As a matter of fact, the Big Red recently revealed that it gained a total of 565,000 new postpaid customers during the first quarter. Some industry analysts have predicted that the carrier would add about 620,000 new postpaid sign ups. Even though Verizon was not able to reach that figure, 565,000 new subscriptions is still a lot by any measure.
With regards to churn rate -- the rate in which Verizon Wireless loses its existing customers to competitors -- the carrier was able to decrease it, despite mounting pressure from the other three major wireless carriers in the US, namely AT&T, Sprint, and T-Mobile. In the final quarter of last year, Verizon had a churn rate of 1.14 percent, but during the first quarter of this year, the carrier managed to reduce it to 1.03 percent.
It is still quite early in the year and Verizon Wireless is confident that it can continue to add new customers as the year goes on. According to Fran Shammo, chief financial officer at Verizon, the carrier has always had a good record when it comes to adding new customers in the second quarter, and the company is looking at better figures for new sign ups in the later parts of the year.
Verizon Wireless concluded the first quarter of 2015 with 108.6 million total retail connections -- 102.6 million of which consist of the more important postpaid subscribers. The carrier is taking a more focused approach in keeping its postpaid customers, and the initial results show progress. During the quarter, the carrier managed a postpaid smartphone churn rate that is under 0.9 percent. Now compare that to the carrier's basic phone churn rate, which is over 1.2 percent.
As for its earnings, Verizon Wireless reported earnings per share of $1.02, which is $0.95 higher than what industry watchers had predicted. In terms of revenue, however, the Big Red underperformed compared to what analysts targeted. The carrier managed to generate revenues of $31.98 billion, which is about $290 million less compared to the industry watchers' forecasts.
Wirefly Is America's Most Trusted Source For All Cell Phones, Plans, TV, and Internet Deals
Wirefly offers great deals on a large selection of smartphones, cell phones, tablets, mobile hotspots, and other wireless devices for the nation's most popular carriers. Use Wirefly’s innovative cell phone and plan comparison tools to ensure you are getting the best deal on the market. Shop with confidence knowing that Wirefly wants to help you find the best prices on cell phones, cell phone plans, TV, and Internet service.