AT&T Inc. (NYSE:T) has reported first-quarter revenue that fell short of expectations, sending its shares more than 5% lower in Thursday's pre-market trade.
The wireless carrier grew revenue by 1.4% to $30.1 billion for the three months to March 31, 2023, below the $30.3 billion forecast by Refinitiv.
It attributed the increase primarily to higher Mobility, Mexico and Consumer Wireline revenues, which it said were partly offset by lower revenue from Business Wirelines.
Steady operating expenses of $24.2 billion reflected the benefits of the company’s continued transformation, while adjusted operating income improved to $6 billion for the quarter, up from $5.8 billion in 1Q 2022.
Adjusted earnings per share fell 4.8% to $0.60 but were above the $0.59 expected by analysts.
The company noted continued 5G and fiber subscriber gains over the quarter, with 424,000 postpaid phone net adds - its 11th straight quarter with more than 400,000 net adds alongside continued low postpaid phone churn. It also boasted 272,000 AT&T Fiber net adds, for a 13th straight quarter with more than 200,000 adds.
"Our teams take pride in connecting more people to greater possibility through 5G and fiber," CEO John Stankey said in a statement.
"We're winning thanks to a proven and sustainable playbook that centers on simple, customer-centric experiences," he added. "As a result, we're adding high-value customers, and when they choose AT&T, they stay with us. The work we're doing today is establishing a foundation for durable, long-term growth, and we remain confident in our full-year guidance."
The company said it remains on track to achieve a $6 billion-plus run-rate cost savings target before the end of the year
Contact the author at stephen.gunnion@proactiveinvestors.com