AT&T posts mobile customer gains in Q1 - Mobile World Live

AT&T posts mobile customer gains in Q1

22 APR 2022
AT&T

AT&T added 691,000 post-paid phone subscribers in the first quarter, its best net additions in an opening period for more than a decade.

On an earnings call, CEO John Stankey stated the post-paid subscriber additions were the result of AT&T’s stable approach to not chase potential customers with promotions including $1,000 incentives.

Stankey said he believes the overall wireless market will remain strong.

AT&T’s wireless revenue grew 5.5 per cent year-on-year to $20.1 billion, with service sales up 4.8 per cent to $14.7 billion due to subscriber growth.

Core revenue, which includes AT&T’s wireless business, rose from $29 billion to $29.7 billion.

However, operating income for the segment was down 3.2 per cent to $5.9 billion. Expenses were up 9.5 per cent to $14.2 billion, due in part to the shutdown of its 3G network and higher equipment costs

Net income fell from $7.5 billion in Q1 2021 to $4.8 billion, with consolidated revenue down from $43.9 billion to $38.1 billion, although the prior year included its now-divested U.S. video and Vrio businesses.

In the recent quarter, AT&T’s fibre business added 89,000 new subscribers for a total of 6.3 million, up 1.1 million over the comparable period in 2021.

Stankey credited the fibre broadband additions to a simplified pricing plan which at a minimum is $10 higher than cable operators and other ISPs charge in the same markets.

He noted fibre revenue now comprises nearly half of AT&T’s consumer wireline broadband turnover.

AT&T ended Q1 with 76.8 million subscribers to its HBO and HBO Max services, up 4.4 million. The operator completed a spin-off of the units earlier this month as part of a deal for its WarnerMedia division.

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Mike Robuck

Mike Robuck is the U.S. Editor at Mobile World Live. He joined the Mobile World Live staff in February of 2022. Prior to joining GSMA, he was editor of FierceTelecom and of Light Reading’s Telco Transformation microsite. He has a...

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