On January 27, AT&T exceeded expectations with its fourth-quarter wireless subscriber growth. The surge was attributed to the strong demand for its discounted premium plans that offer a combination of 5G mobile and high-speed fiber data. This success led to a more than 6% increase in the company's shares during early trading.
The telecom giant in the U.S. acquired 482,000 net monthly bill-paying wireless phone subscribers in the holiday quarter, surpassing analysts' projected gains of 424,550, as reported by Visible Alpha.
AT&T's approach of bundling high-speed fiber internet with wireless phone services has been instrumental in driving the company's growth amidst a shrinking pool of potential new wireless customers in the United States.
Investments in fiber are anticipated to notably accelerate growth in fiber subscribers and revenue over time, as expressed by New Street Research analyst Jonathan Chaplin. He noted, Broadband is a better business than mobile and it will trade at a higher multiple in time.
The company's fiber business saw a notable increase, adding 307,000 new customers in the fourth quarter, surpassing the 226,000 additions in the preceding quarter, marking its best fourth-quarter fiber net additions.
AT&T's CEO, John Stankey, emphasized the commitment to building the most extensive, highest capacity, and most cost-effective converged broadband network in the country during a post-earnings call.
The fourth quarter traditionally sees strong performance for telecom operators due to factors like Black Friday promotions, new iPhone launches with trade-in deals, and the gift-giving season during Christmas, all of which contribute to increased subscriber additions.
AT&T previously announced expectations of exceeding $18 billion by 2027 and reaching over 50 million locations with fiber by 2029.
In its latest financial report, AT&T disclosed a profit of 54 cents per share, beating analysts' forecast of 50 cents per share. Their total revenue increased by about 1% to $32.3 billion, compared to an estimate of $32.04 billion.
Furthermore, AT&T initiated a new initiative from January 9 to address network outages, aiming to attract customers in a fiercely competitive market.