AT&T on Thursday posted a 2.5% rise in core wireless revenue for the first quarter, as the telecom giant benefited from the aggressive expansion of its fiber internet and 5G services.
Demand for high-speed internet has been soaring as Americans upgrade to 5G devices and ramp up their home networks to meet the challenges of hybrid work and education.
The company’s core revenue, which includes contributions from its wireless business, rose to $29.7 billion in the first quarter from $29 billion a year earlier.
Overall revenue, however, was down more than 13%, reflecting the impact of its divested satellite TV business and weakness in its business wireline unit.
The Dallas, Texas-based firm – whose WarnerMedia unit completed its merger with Discovery earlier this month to form the new media firm Warner Bros. Discovery – added 691,000 monthly phone bill paying subscribers during the quarter.
Total global subscribers for HBO and HBO Max rose by 3 million from the previous quarter.
Analysts are keeping a close watch on AT&T’s strategy post-divestment as it doubles down on its wireless business.
Net income attributable to common stock fell to $4.8 billion, or 65 cents per share, from $7.5 billion, or $1.02 per share a year earlier.