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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