Verizon Communications Inc. (N: VZ) beat analyst expectations after reporting higher-than-expected quarterly profit and revenue. Heavy promotions allow the company to attract more postpaid subscribers despite Apple’s (O: AAPL) launch of its new iPhones.
Verizon, the largest wireless service provider in the US, has been facing increased competition from Sprint Corp. and T-Mobile, and offering major discounts on data and call plans.
Company shares rose 2% on Tuesday during premarket trading.
During the quarter, Verizon added 1.3 million postpaid subscribers compared to 1.1 million during the second.
While postpaid subscribers are up, Verizon’s ARPA (average revenue per account) was down from $153.73 to $152.38.
The company’s ARPA comes under increased pressure, Verizon has been entering new markets, like mobile video to boost its earnings. Verizon is also delving into the “Internet of Things” sector.
Revenue from Verizon’s Internet of Things and similar offerings increased to nearly $175 million, up from $165 million in the previous quarter.
Revenue from the company’s high-speed Internet service, FiOS, also increased 7.5% from the previous year to reach $3.4 billion.
Verizon’s net income increased 9.3%, or $.99 per share, to $4.04 billion. The company earned $1.04 per share excluding items, which is slightly higher than the average estimate of $1.02. Operating revenue increased 5% to reach $33.16 billion. Analysts were expecting $32.94 billion.