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A top Verizon official said the company expects to stop losing postpaid phone customers in its consumer business starting in the fourth quarter. Such a development would reverse months of losses in the business and would represent a feather in the cap of Verizon's new consumer CEO, Sowmyanarayan Sampath.
"Sampath's goal is ... to get the positive [customer growth]," said Verizon CFO Tony Skiadas during an investor event this week, according to Seeking Alpha. "So, he's got good momentum. Our offers coming out of the third quarter are resonating in the market. We had good gross add momentum coming out of the third quarter. That's continued into the early part of the fourth. We'll see where that goes, obviously, we have the holiday season in front of us ... we like the momentum we have at this point."
Specifically, Skiadas pointed out that Verizon gained 41,000 postpaid phone customers in its consumer business in the fourth quarter of 2022, and he said the company expects to exceed that figure in the fourth quarter of 2023.
That dovetails with recent predictions from the financial analysts at New Street Research. The firm noted that Verizon lost 263,000 consumer postpaid phone customers – widely considered the most valuable type of mobile customer – in the first quarter of this year. The company then narrowed those losses to 136,000 in the second quarter of this year, and further improved it to a loss of just 51,000 in the third quarter of this year. The New Street analysts in October predicted Verizon would reverse those losses completely in the fourth quarter of 2023 by adding 49,000 new consumer postpaid phone customers.
Verizon's losses are noteworthy considering the company maintained a dominant position in the 4G era. But Verizon's situation in the US market has slipped amid the transition to 5G, with rivals T-Mobile and AT&T – and the nation's cable companies – gaining hundreds of thousands of new postpaid phone customers every quarter.
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