Telecommunications giant AT&T exceeded wireless subscriber growth projections for the first quarter, driven by successful customer adoption of combined wireless and high-speed fiber internet packages.
The company’s stock price climbed 1% during Wednesday’s premarket trading session following the announcement.
Wireless carriers continue battling intensely for market share, offering enhanced device subsidies, plan discounts, and expanding network infrastructure investments to secure and maintain their customer base.
A significant convergence trend emerged as approximately 42% of AT&T customers who subscribe to home internet services also chose wireless plans from the company, creating what industry analysts consider a crucial competitive advantage.
Similar to competitor T-Mobile, AT&T continued offering device subsidies during the first quarter for Apple’s newest iPhone models as wireless providers intensified their competition through attractive promotional deals.
The telecommunications provider reported gaining 294,000 net monthly postpaid wireless subscribers during the quarter, surpassing the 272,000 additions that FactSet-surveyed analysts had anticipated.
AT&T implemented strategic pricing adjustments, increasing costs for its entry-level and premium wireless plans while reducing prices for mid-tier options, which analysts interpret as an effort to guide customers toward middle-range services without triggering industry-wide price competition.
Quarterly revenue increased approximately 3% to reach $31.5 billion, exceeding LSEG estimates of $31.25 billion.
Beginning this quarter, AT&T restructured its business divisions to emphasize core growth sectors.
The newly formed advanced connectivity division, which encompasses domestic 5G and fiber operations, achieved roughly 5% revenue growth due to increased wireless device sales and contributions from the fiber business acquisition from Lumen.
AT&T’s adjusted earnings reached 57 cents per share for the quarter, surpassing analyst expectations of 55 cents.
