AT&T quarterly wireless subscriber additions beat estimates

AT&T on Thursday (Apr 20) reported better-than-expected quarterly subscriber additions, as the US wireless carrier’s discounted offers and cheaper plans helped it lure more cost-conscious customers in a highly competitive market.

After a string of divestment including the spinoff of WarnerMedia last year, AT&T has been focusing on expanding its 5G technology and high-speed home Internet service to win customers and drive sales amid a slow economic environment.

The carrier, which faces fierce competition from rivals Verizon Communications and T-Mobile US, added 424,000 postpaid phone subscribers in the latest quarter, above Factset estimate of 422,800 additions.

Analysts and investors generally watch postpaid phone figures closely as those customers pay a recurring monthly bill, making them valuable to the carriers.

Total revenue for the first quarter rose 1.4 per cent to US$30.1 billion, compared with US$29.7 billion a year earlier. Analysts on average were expecting US$30.27 billion, according to Refinitiv IBES data.

AT&T said the growth was also driven by higher revenue in broadband services, partly offseting lower equipment sales.

Income from continuing operations was US$4.5 billion, or 57 cents per share, in the quarter, compared with US$5.1 billion, or 65 cents per share, a year earlier.

Excluding items, the company earned 60 cents per share. REUTERS