Verizon Communications Inc. on Friday cut its annual profit forecast after adding fewer monthly phone subscribers than expected in the second quarter, in a sign that red-hot inflation has begun impacting its business.
Chief Executive Hans Vestberg said customer additions took a significant hit from inflation at a time when the carrier is grappling with intense competition in the U.S. telecom sector.
U.S. companies are bracing for a slowdown in consumer spending in the second half of the year as four-decades-high inflation makes customers more price-conscious in the world’s largest economy.
“As market leader, Verizon has more to lose,” Paolo Pescatore, telecom analyst at PP Foresight said, adding it will likely be a challenging year for the company….