AT&T Inc. (NYSE: T) shares slipped more than 2% in intra-day trading on Wednesday even after the telecommunications giant posted stronger-than-expected third-quarter subscriber additions and adjusted earnings, helped by bundled offers that combined 5G mobile and fiber internet plans.
The Texas-based company added 405,000 net postpaid wireless phone subscribers during the quarter, up 0.5% year-over-year and above Bloomberg consensus estimates of 338,547. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 2.6% to $11.9 billion, surpassing forecasts of $11.77 billion.
AT&T also gained 288,000 fiber customers, beating projections of 273,747. The firm said more than 41% of households using its fiber services also subscribed to its mobility offerings. Mobility revenue grew 3.1% from a year earlier, supported by stronger wireless device sales.
However, total revenue of $30.7 billion came in below analyst expectations, weighed down by continued weakness in the company’s business wireline segment, which provides data, voice, and internet services through physical fiber infrastructure.
