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AT&T broke additional Wall Street estimates for wireless subscribers in Wednesday’s first quarter due to stable demand for plans that bundle high-speed textile services and 5G mobile products.
The focus of US wireless carriers, focusing on fierce competition in saturated markets and bundles to dodge aggressive trade-in offers, helped them acquire 324,000 monthly bill payment wireless phone subscribers.
This compared to estimates of an additional fact set of 258,300 for the quarter.
The focus of US wireless carriers, focusing on fierce competition in saturated markets and bundles to dodge aggressive trade-in offers, helped them acquire 324,000 monthly bill payment wireless phone subscribers. (Alex Tai/Sopa Images/Lightrocket bygetty Images/Getty Images)
After flagging the rate of rising subscribers leaving service in January, AT&T has stepped up its trading with the latest iPhone promotions to include trade-in models of all states.
Device upgrades have been “higher than expected” since the announcement of mutual tariffs in early April, according to AT&T CFO Pascal Desroches.
Telecom companies typically experience high upgrade rates later in the year, primarily in line with the launch of new iPhone models.
Workers and customers can be seen at the AT&T store sales floor in Miami, Florida. (Joe Raedle / Getty Images / Getty Images)
AT&T stocks waived pre-market profits and traded almost flat.
Total revenues rose 2% to $30.6 billion in the first quarter, compared to an analyst’s estimated $30.35 billion, according to LSEG data.
More than 40% of AT&T’s customers using fiber have also chosen the wireless plan, the company said.
“We’ve been working hard to get the better of our customers,” said Dave Heger, senior communications services analyst at Edward Jones.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| t | AT&T Inc. | 27.14 | +0.18 |
+0.69% |
The company attracted subscribers to the launch of the AT&T warranty in January. This is a policy that provides invoice credit for network disruptions.
AT&T also reaffirmed its free cash flow and adjusted earnings forecast for the year and said it plans to begin stock repurchases in the second quarter.
Rival Verizon on Tuesday recorded a higher subscriber loss in the first quarter. T-Mobile is scheduled to report on Thursday after the market closes.
