Verizon Communications Inc. signaled another weak quarter in terms of new subscribers, due in part to price hikes earlier this year. Investors heeded the warning, sending the stock down to near a 10-year low.
(Bloomberg) — Verizon Communications Inc. signaled another weak quarter in terms of new subscribers, due in part to price hikes earlier this year. Investors heeded the warning, sending the stock down to near a 10-year low.
Chief Executive Officer Hans Vestberg, speaking at Goldman Sachs Group Inc.’s media and telecom conference Wednesday, said that the price increases have caused a “churn bubble” in the current quarter. He said raising prices was still “the right decision,” however.
Read more: Verizon Plans First Price Hike in 2 Years as Inflation Bites
A subscriber decline would mark the third straight quarter in which Verizon trails is two main rivals, AT&T Inc. and T-Mobile US Inc., in new customer acquisitions.
The company reported just 12,000 new phone subscribers in the second quarter after suffering a loss of 36,000 in the first.
Verizon shares have fallen more than 20% this year to $41.38 as of 1:43 p.m. in New York.
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