Verizon has been struggling to fend off smaller rivals T-Mobile US and Sprint in a maturing market for US wireless service, and in February offered an unlimited data plan for the first time in more than five years.
While it has pursued other revenue streams, including a $4.48 billion deal for Yahoo's core business, analysts have questioned if it should pursue a more transformative combination.
"We continue to believe the company needs a strategic transaction to support their wireless business for the long-term," analysts at New Street Research said in a note.
Meanwhile, Verizon's main competitor AT&T plans to diversify its business through an $85.4 billion acquisition of Time Warner, which would give it control of cable TV channels like HBO and other coveted media assets.Verizon's shares were down 1.2% at $48.33 in midday trade.
Earlier this week, Verizon chief executive Lowell McAdam said in an interview with Bloomberg that he is open to deal talks with companies ranging from Comcast to Walt Disney.
On Thursday, CFO Matthew Ellis clarified the comments, saying that while the company would consider deals that are in the interest of shareholders, it is confident in its assets.
"The ecosystem is constantly changing, and if there's somebody who comes to us with an idea of how we can kind of leapfrog forward in that environment, we're going to listen to them," Ellis said in an interview with Reuters. But he added: "We are very confident with the strategy that we have."
In the first quarter, Verizon said it lost 307 000 retail postpaid subscribers or those who pay a monthly bill. Analysts on average were expecting net additions of 222 000, according to market research firm FactSet StreetAccount.
Churn, or customer defections, among wireless retail customers who pay bills on a monthly basis, increased to 1.15% of total wireless subscribers, compared with the average analyst estimate of 1.03%, according to FactSet.
Ellis noted churn rose in the first half of the quarter but came down in response to the relaunch of unlimited plans. "It really was a tale of two halves," he said.
But analysts viewed the results as disappointing.
"They badly missed on every important subscriber metric, and it just underscores that the wireless business is a severely growth-challenged business at the moment," said Craig Moffett, an analyst at MoffettNathanson, in an interview.
Net income attributable to Verizon fell to $3.45 billion, or 84% per share, in the first quarter ended 31 March, from $4.31 billion, or $1.06 per share, a year earlier. Excluding items, earnings per share was 95 cents.
Total operating revenue fell to $29.81 billion from $32.17 billion a year earlier.
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