AT&T surpasses expectations for subscriber additions and free cash flow

AT&T Exceeds Expectations with Strong First-Quarter Performance

In a surprising turn of events, AT&T has outperformed Wall Street expectations for the first quarter, showcasing impressive growth in wireless subscriber additions and free cash flow. The telecom giant’s shares surged by 2.4% in early trading following the release of its quarterly results.

AT&T’s success can be attributed to its strategic focus on 5G rollouts and competitive pricing for its unlimited plans, which have resonated well with budget-conscious consumers in the fiercely competitive U.S. market. The company added 349,000 net monthly bill-paying wireless phone subscribers, surpassing analyst estimates by a significant margin.

Furthermore, AT&T’s efforts to expand its fiber network have paid off, leading to a 7.7% increase in broadband revenue for the period. The company’s finance chief, Pascal Desroches, highlighted the cost efficiencies of fiber technology, which has contributed to improved service quality and customer satisfaction.

Despite falling slightly short of revenue expectations, AT&T’s free cash flow more than tripled to $3.1 billion, exceeding analyst estimates. The company’s emphasis on customer retention over acquisition has proven successful, with AT&T achieving its lowest first-quarter churn rate in recent years.

Overall, AT&T’s strong performance in the first quarter sets a positive tone for the company’s future growth prospects. With a solid foundation in place, AT&T is well-positioned to capitalize on emerging opportunities in the dynamic telecom sector.