The U.S. telecom giant reported an addition of 403,000 net monthly bill-paying wireless subscribers during the July-September period, surpassing analyst estimates from Visible Alpha, which forecast 393,430 additions.
The U.S. telecom giant reported an addition of 403,000 net monthly bill-paying wireless subscribers during the July-September period, surpassing analyst estimates from Visible Alpha, which forecast 393,430 additions.
AT&T’s focus on premium plans has helped it remain competitive in the highly saturated U.S. telecom market, where rivals like Verizon and T-Mobile are bundling services with popular streaming platforms like Netflix and Max to attract customers.
Moreover, AT&T has seen rising demand for bundled plans that combine its high-speed fiber internet service with wireless phone options at a discounted rate. The company revealed that 40% of its fiber customers also subscribe to its wireless services.
Customer loyalty also remained strong, as AT&T’s postpaid phone churn rate — the percentage of customers discontinuing service — was 0.78% for the quarter. This was bolstered by the company's smartphone plans, which offer consistent promotions to both new and existing customers.
However, AT&T's revenue for the quarter fell slightly below expectations, coming in at $30.2 billion compared to analyst projections of $30.44 billion, according to LSEG data. The shortfall was partly due to weaker sales of mobility equipment, as fewer customers opted to upgrade their phones.
AT&T’s fiber business added 226,000 new subscribers, falling short of the anticipated 257,860 additions. This was primarily impacted by a work stoppage in the company’s southeastern region, which began in August and slowed fiber installations.
Operating expenses surged by 14% to $28.1 billion, exceeding the $22.31 billion estimate compiled by LSEG. A significant portion of the increased costs was driven by a $4.4 billion non-cash goodwill impairment charge related to AT&T’s business wireline unit, where customers have been moving away from legacy services faster than expected.
TechEchelon Staff bylines are produced collectively by the newsroom for short, breaking, and wire-style coverage. Longer-form reporting is published under the responsible reporter's name.
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