(Reuters) – Verizon Communications Inc (VZ.N) on Friday beat estimates for second-quarter revenue on strong demand for its phone and internet services as coronavirus-induced lockdowns prompted a rapid shift to remote working and learning.
Although stay-at-home orders cut down store visits, limiting new sign-ups in a quarter that was almost entirely spent under lockdown rules, a pick up in demand for internet services helped the company add more phone subscribers who pay a monthly bill.
In the second quarter, Verizon added 173,000 postpaid phone customers, above analysts’ estimates of 61,200 additions, according to research firm FactSet.
Total operating revenue fell 5.1% to $30.4 billion but beat the analysts’ average estimate of $29.93 billion, according to IBES data from Refinitiv.
The company said that the fall in revenue was due to a decline in wireless equipment revenue in the quarter, hurt by lockdown-led store closures.
Revenue in Verizon’s media unit, which includes Yahoo, HuffPost and TechCrunch, declined 24.5% to $1.4 billion from a year earlier as companies cut down on advertising to rein in expenses.
Reporting by Neha Malara; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty