The telecom giant experienced a 10 percent decrease in phone upgrade volumes, attributed to high interest rates that led consumers to reduce their spending. This decline contributed to a nearly 9 percent drop in wireless equipment sales for the quarter.
Verizon's total revenue reached $33.3 billion, slightly below the analysts' forecast of $33.43 billion, as per data from LSEG.
On a positive note, the company added 239,000 net monthly bill-paying wireless subscribers in the September quarter, surpassing the anticipated 218,100 additions, according to FactSet. This follows a gain of 148,000 subscribers in the previous quarter.
The increasing popularity of Verizon's myPlan, a customizable service that includes streaming options like Disney+, Hulu, and Max for an additional fee, has helped the company maintain its position in the competitive U.S. telecom landscape.
As the U.S. wireless market approaches saturation, Verizon and its competitors are focusing on expanding their high-speed broadband internet services to accommodate the growing data demands of consumers. Last month, the company announced its acquisition of fiber-optic internet provider Frontier Communications in a $20 billion deal.
In the broadband sector, Verizon reported net additions of 389,000 subscribers during the quarter, down from 434,000 a year earlier, bringing its total broadband subscriber count to over 11.9 million.
The company is anticipated to outline its broadband strategy and set new targets for this segment later today during a call with analysts.
Additionally, its fixed wireless service, which delivers signals to homes or businesses via airwaves, gained 363,000 customers, reaching nearly 4.2 million subscribers and achieving its goal of 4 to 5 million subscribers a year ahead of schedule.
Excluding certain items, Verizon reported earnings of $1.19 per share, slightly above the expected $1.18.
Net income decreased to $3.4 billion, down from $4.9 billion the previous year, primarily due to severance costs of $1.7 billion associated with a voluntary separation program and additional workforce reduction efforts.