AT&T reaffirms outlook on robust first quarter

(Sharecast News) - AT&T reaffirmed full-year guidance on Wednesday, sending shares in the US telecoms giant higher, after first-quarter subscriber numbers beat expectations. Bill-paying wireless phone subscribers rose by a net 294,000 in the three months to March end, comfortably ahead of forecasts for 272,000, with postpaid phone churn of 0.89%. AT&T also flagged its fastest ever year-on-year organic growth in its advanced connectivity convergence rate.

That helped lift revenues at the Dallas-based firm by 2.9% to $31.5bn, against estimates for $31.25bn, while adjusted earnings per share rose to $0.57 from $0.51.

John Stankey, chief executive, said: "We saw our best first quarter ever for advanced connectivity internet customers net additions, demonstrating the solid foundation of assets we've built. We uniquely positioned to deliver more of what customers want: fibre and 5G all from one provider."

Looking to the full-year, AT&T - which was founded in 1885 - reaffirmed guidance for adjusted EPS of between $2.25 and $2.35, and service revenue growth in the low single digit range.

As at 1330 BST, the New York-listed stock was up 3% in pre-market trading.