The largest United States wireless carrier Verizon Communications Inc. (NYSE:VZ) is desirous to expand its profit and for that matter the company is extending its waiting period for phone upgrade discounts.
In an official statement company disclosed that customers will have to wait for 24 months to get a cheaper price for a new device, beginning in January. The earlier waiting period was 20 months. The development lines up new phone discounts with the expiration of two year service contracts. In order to retain or attract customers Verizon Wireless pays an average of nearly 350 US dollars per phone contract.
With the currently applied delay period the company would be able to squeeze out four more months of subscription fees from every consumers before having to offer a subsidy. Under these sponsorship programs company offers devices like iPhone for 199 US dollars with a two year contract.
Stock Highlights
In last trading activity, Verizon Communications Inc. (NYSE:VZ) stock opened at $50.49 hit maximum price of $ 50.86 throughout the session and ended at $50.86 with no change. In premarket Verizon Communications Inc. stock fell -0.65%.
Revenue Measures
Verizon Communications Inc. generated sales of $115.85 billion in last twelve months with income of 875.00 million. The Company showed a positive 9.11% in the net profit margin and its operating margin is calculated as 11.36%. VZ’s annual sales growth for the past five years was 4.39%.
Verizon Communications Inc. (VZ) past twelve months price to sales ratio was 1.27 and price to cash ratio recorded as 41.40. As far as the returns are concern, VZ return on assets stayed at 4.63% while its return on equity recorded as 2.53%.