AT&T Inc. exceeded Wall Street’s expectations for profit and wireless subscriber growth, easing concerns about the costs of free-phone promotions and the expansion of its fiber and 5G networks.
Third-quarter earnings, excluding some items, were 87 cents a share, the company reported Thursday, surpassing the 80-cent estimate by analysts. Revenue fell to $39.9 billion due to the separation of the DirecTV business, which was less than the $40.48 billion analysts were expecting.
AT&T added 1.2 million regular wireless customers. Analysts expected a gain of 705,461. Of those, 928,000 were new phone subscribers.
“We are moving into what I would call the golden age of connectivity and ubiquity of connectivity,” CEO John Stankey said on a conference call.
Subscribe to Ad Age now for award-winning news and insight.
The performance marks AT&T’s best quarterly phone results in more than a decade, boosting Stankey’s effort to return the company to the wireless and broadband businesses it’s best known for. Ever since the Dallas-based company abandoned its media strategy, the pressure has been on to show strong subscriber results in the phone and internet businesses.