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Investing.com - AT&T added more wireless subscribers than anticipated in the third quarter, pushing adjusted core income slightly above Wall Street expectations, as the telecommunications group reaps the benefits of a campaign to offer discounted bundles combining 5G mobile and high-speed fiber plans.
Some 405,000 net monthly bill-paying wireless phone subscribers were added during the quarter, edging up by 0.5% from a year ago and surpassing forecasts of 338,547, according to Bloomberg consensus estimates.
Adjusted earnings before interest, taxes, depreciation and amortization climbed by 2.6% to $11.9 billion, versus projections of $11.77 billion.
The company said it was also on track to hit its guidance for the bottom-line figure to grow by 3% or better this year, pointing to "continued customer demand" across the United States for its "wireless and fiber offerings."
“We have the key building blocks in place to give our customers the best connectivity experience in the industry and we’re winning the race to lead in convergence,” said AT&T CEO John Stankey in a statement.
Texas-based AT&T added 288,000 fiber customers, greater than predictions of 273,747. The firm noted that more than 41% of households using its fiber services also chose its mobility business.
Mobility revenue grew by 3.1% year-over-year, fueled partially by higher wireless device sales volumes.
However, group-wide revenues of $30.7 billion were short of expectations, weighed down in part by a decline in returns at its business wireline unit, which uses physical cables like fiber optics to provide internet, data and voice services to enterprises.
AT&T said its anticipated acquisition of Lumen’s mass markets fiber business is due to close in early 2026, subject to regulatory approvals. The transaction comes as the company has targeted a build-out of its fiber network during a time when the wireless market is becoming more saturated and interest usage has spiked.
Shares were higher by more than 1% in premarket U.S. trading on Wednesday.