Verizon subscriptions spike after unlimited data offer

Verizon said Thursday it added 603,000 wireless customers in the third quarter — a better-than-expected total propelled by the offer of unlimited data.

The surprise increase buoyed investors — who had expected a continued slowdown in the sector.

Verizon shares added 1.2 percent on the news, closing at $49.21 on heavy trading.

Craig Moffett of MoffettNathanson had been concerned about “ruinous price wars” as industry leaders Verizon and AT&T struggled to fend off hyper-poaching competitors Sprint and T-Mobile US.

But he called Verizon’s actual results “if not very good then at least good enough.”

Roughly 78 percent of Verizon’s wireless customers are on unsubsidized plans — compared to 60 percent a year ago.

Verizon’s third-quarter revenue of $31.7 billion narrowly topped estimates, while earnings per share of 98 cents came in a penny better than expected.

“None of this is to say, of course, that the wireless business is suddenly a growth business again,” Moffett said. “But things are at least improving.”

Verizon rival AT&T is seeking growth in the saturated wireless market by offering its customers streaming options.

AT&T’s DirectTV Now service has been available since November and will be followed — if the merger with Time Warner is approved by regulators — by HBO fare.

Verizon is also committed to an online TV service but has yet to provide details.

Although Bloomberg reported that Verizon is now targeting a spring 2018 launch, Verizon CFO Matt Ellis insisted Thursday there’s “nothing new to add.

“We are continuing to look at what makes sense for us to launch, something that’s differentiated in that space — probably around live programming,” he said. “But how and when we launch something will be TBD.”