Postpaid and fiber development gasoline Q1 good points as AT&T properties in on 30 million-location fiber milestone
AT&T kicked off 2025 on sturdy footing, reporting sturdy monetary and operational efficiency within the first quarter and reaffirming its full-year steerage, citing development throughout its 5G mobility and fiber broadband companies.
The telco posted revenues of $30.6 billion in Q1, up 2% year-over-year, pushed by good points in mobility and shopper wireline companies. Web revenue rose to $4.7 billion, and adjusted earnings per share got here in at $0.51, in comparison with $0.48 a 12 months in the past. Adjusted EBITDA reached $11.5 billion and free money move elevated to $3.1 billion.
Mobility momentum continues
AT&T’s Mobility enterprise remained a key development driver, with 324,000 postpaid telephone web provides in Q1 and repair income rising 4.1% 12 months over 12 months to $16.7 billion. Complete wi-fi income reached $21.6 billion, up 4.7%, thanks partly to a 6.9% enhance in tools gross sales and better common income per person (ARPU), which grew 1.8% to $56.56.
Postpaid telephone churn was 0.83%, up barely from 0.72% a 12 months in the past, whereas complete postpaid churn was 0.99%. Regardless of this modest uptick, AT&T maintained its aggressive edge by buyer loyalty initiatives and community investments. Mobility EBITDA grew 3.5% year-over-year to $9.3 billion. “This enhance was primarily pushed by the normalization of shoppers reaching the top of their tools promotional financing intervals within the fourth quarter,” commented AT&T Chief Monetary Officer and Senior Government Vice President Pascal Desroches on a name with media and traders.
As compared, Verizon reported postpaid telephone losses totaled 356,000 for the quarter — a distinction that has left some asking if AT&T is luring prospects away from Verizon.
Fiber fuels shopper development
Shopper Wireline posted sturdy outcomes on the again of continued fiber growth. The telco added 261,000 AT&T Fiber prospects, marking 21 straight quarters with greater than 200,000 fiber web provides. AT&T Web Air, its mounted wi-fi broadband service, additionally contributed 181,000 web provides.
General, Shopper Wireline income elevated 5.1% to $3.5 billion, and EBITDA surged 18.6% to $1.3 billion. Broadband common income per person rose 7.4% to $70.87, with fiber-specific ARPU up 6.2%.
“A bit of over three years in the past, we set a goal of passing over 30 million complete areas with our fiber community by the top of 2025,” recalled CEO John. “I’m proud to say that we count on to attain that concentrate on earlier than mid-year as we proceed to ramp in the direction of our goal of reaching 50 million-plus complete areas with fiber by 2029.” He added that’s being achived by a mixture of the compan’ys natural construct and the industrial open-access agreements it’s entered with Gigapower and third-party fiber corporations.
AT&T now passes 29.5 million shopper and enterprise areas with fiber. Notably, greater than 40% of AT&T Fiber prospects additionally subscribe to AT&T Mobility, highlighting the corporate’s deal with convergence.
324,000 postpaid telephone web provides throughout the quarter, along with 261,000 AT&T Fiber web provides.
Tariff impression unknown
Whereas Desroches commented on the decision that AT&T has seen a flurry of handset upgrades in response to tariffs, the bigger impact stays unknown. Stankey stated the corporate is monitoring tariff developments intently and acknowledged potential impacts on tools pricing and demand.
“Like others, we’re intently monitoring this journey to rebalance world commerce. And its impression on the broader economic system. The introduced tariffs might probably enhance the price of smartphones and different units, in addition to the price of community and technical tools. The magnitude of any enhance will rely on a wide range of components together with how a lot of the tariffs our distributors go on, the impression that the tariffs have on shopper and enterprise demand,” he continued.
Blended ends in enterprise phase
Enterprise Wireline remained a weak spot, with income declining 9.1% 12 months over 12 months to $4.5 billion resulting from ongoing stress on legacy companies. Working revenue fell to a lack of $98 million, in comparison with a $64 million achieve final 12 months.
In line with Desroches, the drop was primarily tied to pressures on legacy and transitional choices. “This was partially offset by development in fiber and superior connectivity companies, which grew 4.5%. About one-third of those revenues are from value-added companies, that are variable on a quarterly foundation. The remaining two-thirds, which is predominantly fiber connectivity, is rising at a sooner price and accelerated relative to the fourth quarter,” he stated.
Staying the course
The corporate additionally reiterated its expectation to full the sale of its 70% stake in DIRECTV to TPG by mid-2025.
“The message right here is that the first driver of our development is our success at executing our fiber and 5G playbook, and that our elevated investments in buyer acquisition and retention, our driving sustained development in excessive worth buyer relationships,” summarized Stankey. “The basics of our enterprise are very sturdy. And we proceed to really feel assured that our technique and plans for 2025 are on monitor.”
