CEO Stankey emphasizes “sturdy developments” for 5G and fiber progress
AT&T reported wi-fi postpaid cellphone internet additions of 419,000, with mobility service revenues up 3.4% year-over-year to $16.3 billion for the second quarter. CEO John Stankey famous on the corporate’s quarterly name that up to now this 12 months, AT&T is “modestly forward of final 12 months’s tempo” by way of wi-fi subscriber numbers.
Stankey additionally mentioned that the corporate anticipates greater exercise ranges in wi-fi subs in the course of the second half, as a consequence of “availability of recent gadgets and options, seasonal buying exercise and promotional cycles.”
The corporate reported that it gained 139,000 internet additions in Fastened Wi-fi Entry with its AT&T Air providing, bringing its FWA buyer base to almost 350,000. That service is now accessible in elements of 137 markets, in response to CFO Pascal Desroches, up from elements of 95 markets on the finish of the primary quarter of 2024.
Stankey reiterated AT&T’s focused technique with FWA, which he has made clear shouldn’t be its most well-liked expertise for bringing on broadband prospects (fiber is). “We’re not broadly providing Web Air in all places we do enterprise. We’re being selective in how we do this,” he advised traders. “We’re doing it in locations the place it is smart to help our transition from legacy expertise to new expertise that helps us take price out of the enterprise. We’re doing it in locations the place we’ve got very fallow capability that we will be assured can be long-lived in nature and never one thing that we find yourself having to incrementally spend money on two years out after we promote into the market.” Specifically, AT&T is focusing on small companies which have related utilization profiles to residential households and in addition supply the chance to bundle and promote a number of enterprise merchandise.
Firm consolidated revenues for the second quarter have been down barely, from $29.9 billion within the year-ago quarter to $29.8 billion within the second quarter of 2024. That was pushed by decrease enterprise wireline revenues as the corporate continues to transition away from legacy community expertise and providers, in response to AT&T, in addition to decrease cell machine tools revenues.
Internet revenue for the second quarter was $3.9 billion, in comparison with $4.8 billion within the year-ago quarter.
AT&T continued its streak of 18 consecutive quarters with greater than 200,000 internet fiber additions, bringing in 239,000 throughout 2024’s second quarter; total, the corporate introduced in 52,000 complete broadband subscribers within the quarter. Its client broadband revenues, in the meantime, have been up 7% in comparison with the identical time final 12 months.
The corporate says it’s on observe to fulfill its steering for the 12 months. It handed 27.8 million client and enterprise areas with fiber as of the tip of Q2 and is planning to surpass 30 million-plus areas by the tip of 2025.
AT&T reported that its working bills have been up barely year-on-year from $23.5 billion to $24.0 billion, which it mentioned have been as a consequence of prices primarily associated to its Open RAN community modernization focus in addition to greater depreciation on its fiber and 5G investments.
Stankey emphasised the corporate’s converged technique of with the ability to supply each fiber and 5G and promote wi-fi throughout its fiber buyer base; AT&T mentioned that 40% of its fiber prospects are additionally wi-fi subscribers. “I’m inspired by our momentum and see a protracted runway of progress with 5G and fiber collectively,” Stankey added.
