Verizon Communications (NYSE:VZ), the largest U.S. wireless service provider, posted a 5% increase in quarterly revenue as heavy promotions helped attract postpaid subscribers. Shares rose in premarket trades.
Total operating revenue rose to $33.16bn in the September quarter, from $31.59bn, the New York-based company said in a statement on Tuesday.
Net income rose to $4.04bn, or $0.99 per share, in the September quarter, from $3.70bn, or $0.89 per share, a year earlier. Excluding special items, per-share earnings were $1.04 a share.
Analysts polled by Capital IQ had forecast earnings of $1.02 per share on $32.94bn in revenue.
Third-quarter results were also boosted by the company’s recent acquisition of AOL Inc.
Verizon has faced fierce competition from rivals that has pushed it to cut prices.
The company net added 1.3mln wireless retail postpaid subscribers in the quarter compared with 1.1mln in the second quarter.
Shares were trading up as much as 0.7% as of 8:31 a.m. in New York. The stock had lost 4.2% since the beginning of the year through the close of trading on Monday.