(Bloomberg) -- Verizon Communications Inc. added more retail mobile customers in the fourth quarter than it has in any period since 2021, signaling a potential turning point for the phone giant that has been struggling to regain market share from competitors. 

Verizon’s consumer group added 318,000 mobile subscribers in the three months ended Dec. 31, the company reported Tuesday in a statement, beating Wall Street’s estimates of 95,900. The net gain, the first one after three down quarters, comes as the New York-based company works to win customers lost to rivals AT&T Inc. and T-Mobile US Inc.

Verizon had fallen behind its wireless peers in subscriber growth for years, after costly purchases and strategic missteps allowed competitors to take its share in the already-saturated mobile market. 

Last March, the company placed nine-year company veteran Sowmyanarayan Sampath in charge of the consumer division, which represented 76% of Verizon’s revenue in the fourth quarter. Sampath has hiked prices and introduced flexible pricing plans in a bid to restore growth. He has a target of about 1 million new customers a year.

“We made significant changes to how we operate and to our team, and those changes paid off,” Chief Executive Officer Hans Vestberg said during the company’s earnings call.

Read more: Verizon Turns to Inside Fixer to Pull Mobile Giant Out of Slump

Chief Financial Officer Tony Skiadas attributed new consumer pricing tiers and bundles that include perks like Netflix and Max to the new customers and growth. Thirteen million people now subscribe to the new pricing plan, known as myPlan, Skiadas said in an interview.

“We see really great progress with myPlan,” Skiadas said. “Our offers resonated with customers.”

Shares in New York jumped as much as 6.1% to $42.00, their highest price since last February. Verizon’s stock has rallied about 30% in the last three months, aided by strong third-quarter results that showed a better-than expected increase in broadband subscribers, returning roughly to levels of about a year ago.

The “robust” results suggest Verizon’s strategy is working, Bloomberg Intelligence analyst John Butler said in a note Tuesday. He cited as factors the new pricing, and activation of more of Verizon’s prime C-band airwaves that provide fast connections. “The momentum may continue as the latest measures provide a lift,” Butler said.

Read More: Verizon Raises Prices on Old Customers in Push for New Data Plans

Total wireless service revenue was $19.4 billion in the quarter, up 3.2% from a year earlier in part due to price hikes and the adoption of new premium pricing plans, Verizon said.

Fourth-quarter adjusted earnings were $1.08 per share, in line with analysts’ average estimate. Revenue for the three months ended in December fell 0.3% from a year earlier, to $35.1 billion, compared with the average projection of $34.5 billion. Verizon attributed the drop to fewer customers upgrading phones.

The company also reported a continued drop in its business group after writing down the unit’s value by $5.8 billion last week, citing declining demand and competitive pressure. The unit’s revenue fell 3.6% to $7.6 billion in the quarter, even as it added wireless phone subscribers. Verizon cited lower sales from wireline services and equipment. 

Verizon reported broadband net additions of 413,000, including 375,000 fixed wireless accounts.

Free cash flow rose to $18.7 billion in 2023, up from $14.1 billion the previous year.

(Updates with CFO comments in sixth paragraph, shares in eighth paragraph)

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