AT&T showcased robust performance in its first-quarter financial report, buoyed by significant mobile customer additions and positive metrics in earnings, cash flow, and spending. Despite a slight decline in headline figures, the telecommunications giant demonstrated resilience amid challenging market conditions.
A notable highlight was the addition of 349,000 postpaid phone customers during the quarter, surpassing analysts’ expectations and outperforming industry peers. While this figure represented a decline compared to the previous year, it overshadowed Verizon’s retail postpaid phone losses, indicating AT&T’s strength in customer acquisition.
With a postpaid phone churn rate of 0.72%, AT&T anticipates leading the industry, underscoring its commitment to customer retention and satisfaction. The company’s emphasis on fixed wireless access (FWA) saw significant growth, with 110,000 Internet Air FWA customers added during the quarter, contributing to a total base of 203,000.
Despite trailing behind competitors like Verizon and T-Mobile in FWA offerings, AT&T remains focused on expanding its fiber-based broadband services. The addition of 252,000 AT&T Fiber customers in Q1 highlights the company’s dedication to bolstering its broadband infrastructure.
AT&T’s financial performance showcased mixed results, with a slight decline in group revenues attributed to lower Business Wireline revenues, which include FWA. However, the company reported positive indicators such as increased adjusted EBITDA to $11 billion, higher free cash flow at $3.1 billion, and reduced capital expenditure.
CEO John Stankey reaffirmed AT&T’s strategic direction, emphasizing the company’s commitment to leveraging fiber technology for consumer broadband growth while positioning FWA as a complementary offering, particularly for businesses with unique usage characteristics.
Looking ahead, all eyes are on T-Mobile as the telecommunications industry awaits its first-quarter data. Despite challenges, AT&T’s strong performance underscores its resilience and strategic focus on sustainable growth avenues in the competitive telecommunications landscape.
