AT&T reported a 2.5 per cent increase in third-quarter consolidated revenue to $33 billion but reduced its outlook for the full year, thanks in part to a change in the tariff mix of its gross additions.

The US operator now expects full-year consolidated revenue growth in the 3-4 per cent range, down from the previous forecast of five per cent.

It attributed the change to fewer than expected gross additions for its AT&T Next tariff, which enables users to trade in and upgrade their smartphone early, as well as a higher number of users for its BYOD (bring your own device) package.

In addition, the company cited the sale of its America Movil equity investment, the closure of a wireline property and exiting certain low-margin wireline wholesales businesses. All contributed to the change in outlook for full-year revenue.

Third-quarter net income was $3 billion compared to $3.8 billion in the same quarter in 2013.

The company talked up its strong wireless subscriber growth in the quarter which saw postpaid net additions of 785,000, more than double the year-ago quarter.

It also pointed to its lowest ever third-quarter postpaid churn rate. The segment in question saw churn of one per cent.