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How Did Verizon’s Postpaid Net Additions Perform in 1Q16?

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Verizon’s postpaid customers in 1Q16

Earlier in this series, we learned that in 1Q16, Verizon’s (VZ) postpaid upgrade rate fell YoY (year-over-year). Now, let’s see how the telecommunications (telecom) company performed in terms of postpaid wireless customers in the quarter.

By the end of 1Q16, Verizon’s subscribers rose ~4.4% YoY to reach ~107.2 million in the postpaid component.

Note that Verizon has the largest postpaid base among US wireless players. At the end of 4Q15, the second-largest US player in this metric was AT&T (T). T-Mobile (TMUS) and Sprint (S) followed AT&T in this metric in the United States.

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Verizon’s postpaid net additions in 1Q16

In terms of net customer additions, Verizon’s postpaid metric rose YoY in 1Q16. As you can see in the above bar chart, the telecom company’s net postpaid additions rose by ~13.3% YoY to reach ~0.64 million at the end of the quarter. In 4Q15, the company’s postpaid customer additions fell by ~23.5% YoY on a net basis.

In terms of net customer additions by device type, the carrier reported a loss of ~8,000 postpaid phone connections during the quarter. Meanwhile, its smartphone net additions were ~284,000 in 1Q16. According to Verizon, it had ~507,000 net tablet additions during 1Q16.

Smartphone users are of particular value for mobile carriers. Users of smartphones such as Google’s (GOOG) (GOOGL) Android or Apple’s (AAPL) iPhone tend to have relatively high data usage.

Instead of direct exposure to Verizon’s stock, you may consider diversified exposure to the company by investing in the SPDR Dow Jones Industrial Average ETF (DIA). DIA held ~2.1% in the telecom company at the end of March 2016.

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