AT&T reported impressive third-quarter earnings, with a net gain of 468,000 postpaid phone users. Postpaid subscribers have a lower tendency to switch carriers, making them highly valuable. Furthermore, the company saw historically low postpaid phone churn at 0.79%. The average revenue per user (ARPU) also increased by 0.6% year-over-year to $55.99. This increase can be attributed to customers switching to higher-priced unlimited plans due to iPhone promotions.
During the conference call, AT&T CEO John Stankey stated that the pre-orders for the iPhone 15 were the strongest the company has seen in years. Stating the company’s commitment to providing the best deal for all customers, he noted the success despite competition with higher subsidies and lower-value device trade-ins.
AT&T reported Q3 earnings and said iPhone pre-orders were the best in years
CEO John Stankey further added that most customers taking advantage of iPhone promotions are signing up for their highest-value plans. Surprisingly, this is not a promotional requirement. The highest-value unlimited plan is currently AT&T’s fastest-growing plan. Additionally, AT&T has expanded its network to become the largest wireless network in North America, offering the most reliable 5G network.
AT&T’s mid-band 5G network now covers over 190 million people and is expected to reach 200 million by the end of the year. Mobility revenue saw a 2% increase year-over-year, reaching $20.7 billion. Services revenue also rose by 3.7% to $15.9 billion. However, equipment revenue declined by 3.2% to $4.8 billion due to lower device volume. Mobile EBITDA for the quarter reached a company-record $8.9 billion, reflecting a 7.6% increase year-over-year.
Overall, AT&T reported consolidated revenue of $30.4 billion for the third quarter, marking a 1% annual increase. Earnings per share from continuing operations stood at 64 cents, compared to 68 cents in the same quarter last year.
