Verizon Communications Inc missed first-quarter revenue and free cash flow estimates on Tuesday, hit by wireless subscriber losses as inflation-hit Americans delayed device upgrades and a pandemic-led growth boom fizzled out.
High inflation has also prompted customers to put off their device upgrades and seek cheaper plans, offsetting the growth that Verizon recorded with its enterprise customers.
The carrier lost 127,000 net monthly bill-paying wireless phone subscribers in the quarter, after dropping 263,000 users in its consumer business. Factset had estimated a loss of 121,000 subscribers. Free cash flow, a metric closely watched by investors to help determine dividend payouts, more than doubled to $2.3 billion in the quarter, but came in below the $2.7 billion estimated by 17 analysts polled by Visible Alpha.
Last week, AT&T also missed market estimates for first-quarter revenue and free cash flow, underpinning the pinch that telecom firms have felt this year from a slowdown in consumer spending. Verizon's total revenue fell 1.9% to $32.9 billion in the quarter ended March 31, below analysts' estimates of $33.57 billion, according to Refinitiv data.Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath
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