New wireless subscribers boost earnings for Dallas-based AT&T

The company has shed media properties and narrowed its focus to its longtime core business of providing communications services.

Teresita Gaytan, of Dallas, looks down at her phone while walking her dog Chance at AT&T... — Teresita Gaytan, of Dallas, looks down at her phone while walking her dog Chance at AT&T Discovery District in downtown Dallas, February 22, 2024. (Chitose Suzuki / Staff Photographer )

8:31 AM on Apr 24, 2024 CDT

Dallas-based AT&T beat analysts’ estimates for profit in the first quarter as it added more wireless phone customers than expected.

The nation’s No. 3 wireless carrier reported adjusted earnings per share of 55 cents, compared with analysts’ average prediction of 53 cents. Revenue was $30 billion in the period ended March 31, the company said in a statement Wednesday. That fell short of the $30.5 billion Wall Street was looking for.

Under CEO John Stankey, AT&T has shed media properties and narrowed its focus to its longtime core business of providing communications services, which now include broadband delivered over airwaves and fiber.

AT&T added phone and broadband customers during a quarter that saw rival Verizon Communications Inc. lose phone subscribers. Cable rivals including Comcast Corp. and Charter Communications Inc. will report in the coming days, and are expected to have shed broadband customers, according to Bloomberg Intelligence.

AT&T added 349,000 wireless phone subscribers in the first quarter, beating the 303,539 average estimate of analysts. About 252,000 new customers signed up for AT&T’s fiber service, compared with expectations of 260,000.

AT&T reported 110,000 customers for its Internet Air service introduced in August. The wireless technology sends signals to a device in a home or business over airwaves, rather than a fixed line.

The technology often called fixed wireless has accounted for nearly all of the recent broadband subscriber gains across the industry.

AT&T suffered two notable incidents since it last reported earnings in January: a widespread outage of its wireless network in February, and a security breach disclosed March 30, in which data from about 73 million current and former customers leaked onto the dark web.

Shares were down 1.7% this year through the close of trading Tuesday. Verizon Communications Inc. gained 5.3% over the same period, while T-Mobile U.S. Inc. was up 1.8%.

Todd Shields for Bloomberg