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• Wireless carrier added only 12,000 monthly paying phone subscribers while market estimated 150,800 additions
Verizon Communications Inc (NYSE: VZ) on Friday slashed its annual profit forecast as the company added fewer-than-expected monthly phone subscribers in the second quarter, a sign that inflation has begun impacting its business.
The US wireless carrier expects 2022 adjusted profit to be in the range of $5.10 to $5.25 per share, lower than prior guidance of $5.40 to $5.55 per share.
Shares of Version fell more than 6% in New York.
Telecom companies, including Verizon and AT&T Inc (NYSE: T), have already increased prices for their plans to cushion the impact of higher costs.
Moreover, Verizon is operating in a highly competitive US telecom sector and competing against AT&T, and T-Mobile US Inc (NASDAQ: TMUS), with innovative plans and packages to attract customers.
Increasing costs have been a concern for Verizon, which the wireless carrier had warned about in the first quarter.
"As the market leader, in a very competitive industry, we are determined to improve our operational and financial performance for the second half of the year," Chief Executive Hans Vestberg said in a statement.
The wireless carrier added only 12,000 monthly paying phone subscribers in the quarter ended June 30 compared to market estimates of 150,800 additions. In the first quarter, Verizon had lost about 36,000 subscribers.
Picture Credit: Cnet
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