Bundled packages and the new iPhone boost sales, AT&T's Q3 new wireless user growth exceeds expectations
AT&T added more wireless users than expected in the third quarter, reaching 405,000, thanks to bundled packages and iPhone promotions. The company encourages customers to choose multiple services by offering discounts, reducing churn. Despite a 7.8% decline in wired business revenue, total revenue grew 1.7% year-on-year to $30.7 billion. AT&T also announced a $23 billion acquisition of wireless spectrum licenses to enhance network capabilities. Adjusted earnings per share were 54 cents, in line with expectations
According to Zhitong Finance APP, on Wednesday, AT&T (T.US) announced that the number of new wireless users in the third quarter exceeded expectations. Thanks to bundled packages and aggressive promotions surrounding the launch of the latest iPhone, the company attracted more customers in a highly competitive market.
The third quarter is a critical period for U.S. wireless carriers, as Apple's (AAPL.US) annual iPhone launch event peaks competition. Like other carriers, AT&T launched attractive promotions for the iPhone 17 series to attract new users and encourage existing users to upgrade to more expensive plans.
According to FactSet data, the company added 405,000 postpaid wireless users, compared to the previously expected addition of 334,100 users.
By bundling wireless services with fiber broadband services and offering discounts, AT&T encouraged more customers to choose multiple services and reduced customer churn. Over 41% of fiber users also opted for mobile plans.
Investor attention is also focused on the company's recent strategic moves to enhance network capabilities. AT&T recently announced a landmark $23 billion deal to acquire wireless spectrum licenses from EchoStar (SATS.US).
Third-quarter device sales increased by 6.1%, driven by higher smartphone sales. The operating costs of the mobile division rose by 3.8%, due to selling more and higher-priced phones, as well as increased spending on marketing and promotions.
The company's wireline business saw a revenue decline of 7.8% in the quarter, due to a drop in revenue from traditional voice and data services.
According to LSEG data, AT&T's adjusted earnings per share for the third quarter were 54 cents, which was in line with expectations. Total revenue for the third quarter increased by 1.7% year-on-year to $30.7 billion, below the expected $30.87 billion
