AT&T reports strong Q3 net adds, strong smartphone sales

ATT reported strong third quarter earnings as it added 928,000 postpaid phone net additions and closed in on 70 million HBO Max/HBO subscribers.

The wireless giant reported non-GAAP third quarter earnings of 87 cents a share (82 cents a share GAAP) on revenue of $39.9 billion.

Wall Street was expecting ATT to report third quarter non-GAAP earnings of 78 cents a share on revenue of $39.14 billion.

ATT saw strong gains across its businesses. The postpaid net phone additions in the third quarter were ATT’s strongest showing in 10 years. ATT also added 289,000 ATT Fiber accounts. HBO Max and HBO subscribers were up 12.5 million from a year ago to end the quarter at 69.4 million.

The results come a day after Verizon reported strong results. 

By the numbers:

• ATT added 1,218,000 postpaid net additions in the third quarter as well as 249,000 prepaid phone ads and 928,000 postpaid phone net ads.
• ATT’s mobility unit reported revenue growth of 7% in the third quarter to $19.1 billion and operating income of $6 billion.
• ATT’s equipment revenue was $4.6 billion, up 15%, due to strong smartphone sales.
• ATT Fiber added 289,000 net customers and broadband revenue was up 7.6% in the third quarter from a year ago.
• WarnerMedia revenue in the third quarter was $8.4 billion, up 14.2% from a year ago.

As for the outlook, ATT said adjusted earnings for 2021 will be at the high end of its low to mid-single digit growth range. HBO Max/HBO subscribers will be at the higher end of the company’s 70 million to 73 million target. 

Article source: https://www.zdnet.com/article/at-t-reports-strong-q3-net-adds-strong-smartphone-sales/#ftag=RSSbaffb68