AT&T Inc (T.N) on Thursday reported better-than-expected quarterly subscriber additions, as the U.S. 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 Inc (VZ.N) and T-Mobile US Inc (TMUS.O), 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% to $30.1 billion, compared with $29.7 billion a year earlier. Analysts on average were expecting $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 $4.5 billion, or 57 cents per share, in the quarter, compared with $5.1 billion, or 65 cents per share, a year earlier.
Excluding items, the company earned 60 cents per share.
