AT&T Inc. Adds 2.7 Million Wireless Customers In Q1


AT&T Inc. Adds 2.7 Million Wireless Customers In Q1

Overall, AT&T said it earned $3.47 billion in the first quarter and 74 cents per share, after items, which is in line with the expectations of analysts.

In all for the March quarter, AT&T's earned $3.5 billion, or 56 cents a share, down from $3.8 billion, or 61 cents a share, a year earlier.

AT&T achieved postpaid phone churn of 0.90 percent, while wireless postpaid churn was 1.12 percent.

Revenue attributed to AT&T's wireless division declined 4.4% year-over-year to $17.2 billion, thanks to lower equipment and services revenue.

The telco reported 2.7 million wireless net adds, including 2.1 million in the United States and 633,000 in Mexico. "The strategic moves we've made over the last few months to expand our wireless capacity and fortify our 5G leadership will be felt for years to come", said Randall Stephenson, AT&T Chairman and CEO. Analysts were looking for $40.53 billion.

During the quarter, AT&T added almost 4,000 high-speed IP broadband business subscribers. And our planned acquisitions of Fiber Tower and Straight Path will add valuable millimeter wave spectrum assets to our 5G tool kit as we lead the way to the next generation of wireless technology.

Stephenson also answered a question about AT&T's DirecTV satellite business, which has been bleeding subscribers along with other traditional pay-TV services as cord-cutting gains in popularity.

AT&T and industry leader Verizon Communications Inc VZ.N are battling Sprint Corp S.N and T-Mobile US Inc TMUS.O for market share in a mature USA wireless market where most USA consumers already have cellphones. "Net" subscriber additions totaled 2.1 million. Free cash flow - cash from operating activities minus capital expenditures - was $3.2 billion for the quarter. The company expects to see EPS growth in the mid-single-digit range, with free cash flow in the $18 billion range.

The company, which is in the process of Time Warner Inc, also said it would no longer give a full-year revenue forecast due to the unpredictability of wireless handset sales.

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