The Secret to AT&T's Monster Quarter
Telecom giant AT (NYSE: T) beat expectations on all fronts when it reported its fourth-quarter results on Monday. There was a lot for investors to like. The company hit or exceeded all its full-year targets, with mobility service revenue up 3.5%, broadband revenue up 7.2%, and free cash flow of $17.6 billion. AT also reiterated its 2025 guidance, which it first issued during its analyst day event last year.
AT added 482,000 net postpaid phone subscribers during Q4, its best result since last year's Q4. Postpaid churn remained low AT 0.85%, and average revenue per user for postpaid phones grew slightly year over year. In the fiber business, AT added 307,000 new subscribers, its best quarter in AT least two years. Internet Air, the company's 5G-powered home internet product, had its best quarter ever with 158,000 net new subscribers.
One thing that drove subscriber growth in both the fiber and wireless businesses during Q4 was AT's push to bundle the two services. The company currently offers a 20% discount for new customers on eligible wireless plans when they also sign up for fiber services. The idea is that this discount can lead to stickier customers who are less likely to switch providers. AT noted in its earnings presentation that customers who subscribe to both services tend to stick with the company for longer than other types of customers.
Source Fool.com
