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AT&T tops subscriber estimates as bundled plans, iPhone promotions lift sales
Yahoo Financeยท 2025-10-22 10:36
Core Viewpoint - AT&T exceeded expectations by adding more wireless subscribers in Q3, driven by bundled plans and promotions related to the iPhone launch, leading to a 4% increase in shares during premarket trading [1]. Subscriber Growth - AT&T added 405,000 monthly bill-paying wireless subscribers, surpassing the expected 334,100 additions [2]. Bundled Services and Customer Retention - The company has successfully encouraged customers to adopt multiple services by offering discounts on bundled wireless and fiber broadband plans, with over 41% of fiber households also opting for mobile plans [3]. Strategic Moves - AT&T announced a significant $23 billion deal to acquire wireless spectrum licenses from EchoStar, aimed at enhancing its network capabilities [3]. Revenue and Financial Performance - Equipment revenue grew by 6.1% in Q3, driven by stronger phone sales, while operating costs in the mobility unit increased by 3.8% due to higher expenses from selling more expensive phones and increased marketing costs [4]. - Total revenue for Q3 was $30.7 billion, slightly below the estimated $30.87 billion [5]. - The business wireline unit experienced a 7.8% decline in revenue, impacted by decreases in legacy voice and data services [4]. - On an adjusted basis, AT&T earned 54 cents per share, aligning closely with estimates [4].