Telecommunication giant Verizon had a rough third quarter, according to the company’s third-quarter earnings results released earlier this week. The report showed a decline in profit and number of subscribers, causing Verizon stock to drop to its lowest in more than a decade.
Verizon revealed that it had $5 billion in third-quarter net income, representing a 23% drop compared to the same period in 2021. But the company did manage to beat Wall Street estimates in terms of revenue, coming at $34.2 billion compared to the $33.8 billion expected.
Verizon also took a big hit in the consumer business, where it lost around 189,000 subscribers who were paying monthly phone bills. This was most likely the result of additional charges that the company added to its plans in previous months.
But despite this, Verizon’s CEO Hans Vestberg believes the move will prove beneficial in the long run.
“The pricing actions we took earlier this year, as well as our new cost savings program, show that we are being deliberate and strategic in our decisions to strengthen our business.” said Verizon CEO Hans Vestberg in a statement.
Verizon shares closed at $35.35 on Friday. This represents around a 4% single-day drop and is the lowest point in mid-2011.