Quarterly report from the company

US telephone operator Verizon Communications (NYSE: VZ) reported a 24% decline in net income for the third quarter to $5 billion, compared with $6.6 billion in the same period a year earlier. Earnings per share fell to $1.17 from $1.55.

According to the company's press release, earnings excluding one-off factors fell to $1.32 per share in July-September from $1.42 a year earlier. Meanwhile, analysts polled by FactSet had forecast an average of $1.29 per share.

Verizon's quarterly revenue climbed 4% to $34.2bn from $32.9bn, beating the consensus forecast of $33.8bn.

Including hardware revenue jumped 23% to $6.575 billion, while the company's service revenue rose 0.4% to $27.666 billion.

Verizon reiterated its outlook for the year, which sees adjusted earnings per share of $5.10 to $5.25, against analysts' consensus forecast of $5.19 per share.

Also, as noted in the company's press release, Verizon Communications (NYSE: VZ) lost 189,000 monthly bill-paying subscribers in its consumer business in the quarter after the US operator raised prices on its plans in June on the back of additional fees, which were higher than its already more expensive plans.

Verizon's share price falls in premarket trading on Friday. The company's capitalisation has fallen 28.8 per cent since the start of the year.

Telecom players are coming under increasing pressure to keep their plans affordable as rising living costs limit customer discretionary spending.

This, combined with higher costs due to greater investment in 5G technology and increasing competition to retain high-paying subscribers, has hurt Verizon, which is adding fewer subscribers than its competitors.

The carrier's net profit for the quarter fell 23.3% to $5bn, with adjusted earnings per share at $1.32 per share.

Total revenue, however, rose 4% to $34.2bn, beating expectations of $33.78bn, according to Refinitiv.