AT&T exceeded Wall Street’s projections for wireless subscriber growth in the first quarter, reporting a robust demand for its bundled high-speed fiber and 5G mobile services.
The telecommunications giant added 324,000 net monthly bill-paying wireless phone subscribers, significantly surpassing FactSet’s estimate of 258,300 new additions for the quarter. This success can be attributed in part to AT&T’s strategy of bundling services to counter fierce competition in a saturated market, along with enticing trade-in offers for customers.
Following reports of an increased churn rate earlier this year, AT&T intensified its promotional offerings, including attractive deals for the latest iPhones that allow trade-ins of devices in any condition.
According to AT&T CFO Pascal Desroches, device upgrades have significantly exceeded expectations since the implementation of reciprocal tariffs in early April. He indicated that this trend could potentially bring forward demand typically observed in the latter half of the year, a timeframe marked by the release of new iPhone models.
Historically, telecom companies see a rise in upgrade rates during the second half of the year coinciding with these new releases.
Shares of AT&T relinquished earlier gains in premarket trading and remained relatively stable.
The company’s total revenue rose by 2% to $30.6 billion during the first quarter, which was higher than analysts’ expectations of $30.35 billion, according to LSEG data.
Furthermore, AT&T noted that over 40% of its fiber customers also choose to subscribe to its wireless plans.
Dave Heger, a senior communications services analyst at Edward Jones, remarked that AT&T is well-positioned to continue its subscriber growth and benefit from customers upgrading to premium wireless plans.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| T | AT&T INC. | 27.23 | +0.27 | +1.02% |
The recent introduction of the AT&T Guarantee, which offers bill credits for network service disruptions, has also attracted new subscribers.
Additionally, AT&T reaffirmed its forecasts for free cash flow and adjusted profit for the year, announcing plans to initiate share buybacks in the second quarter.
In a contrasting report, rival Verizon disclosed an increase in subscriber losses for the first quarter, impacted by recent price increases and heightened promotional activity across the industry. T-Mobile is expected to release its earnings report on Thursday after market close.
