By Maria Armental
Verizon Communications Inc. said it is on track to add more of
its most lucrative long-term wireless contracts in the current
quarter than it did in the previous quarter and in the same period
a year earlier, partly thanks to new device launches that are
driving phone upgrades.
The company said it is seeing strong customer demand for 4G
smartphones and tablets on its More Everything shared data plans.
Verizon has relied heavily on signing up tablets as a way of
keeping its subscriber numbers positive and has even given away
tablets free when customers add them to their data plan.
The wireless carrier also warned promotional offers, together
with the strong customer volumes this quarter, will put short-term
pressure on its margins and per-share earnings.
The company in late February completed its deal to gain full
ownership of Verizon Wireless, buying Vodafone Group PLC's 45%
stake in the wireless carrier for $130 billion. The acquisition is
expected to sharply increase Verizon's profits this year and will
give the company more flexibility in driving Verizon Wireless's
future. Verizon has said it is looking to focus on smartphone
penetration and connected devices, such as cars and tablets, to
boost sales at Verizon Wireless.
Write to Maria Armental at maria.armental@wsj.com
Access Investor Kit for Vodafone Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00BH4HKS39
Access Investor Kit for Verizon Communications, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US92343V1044
Access Investor Kit for Vodafone Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US92857W3088
Subscribe to WSJ: http://online.wsj.com?mod=djnwires