July 22 (Reuters) – AT&T added more wireless subscribers than expected in the second quarter, as its revamped low-cost, unlimited plans along with bundled mobile and broadband offerings attracted value-conscious customers.
Shares of the company jumped 5% in premarket trading on Wednesday.
The gains build on AT&T’s broader convergence strategy of selling multiple connectivity services to the same household to reduce churn and increase customer lifetime value as U.S. telecom providers chase the same finite pool of users.
AT&T in March launched OneConnect, a single subscription that bundles unlimited wireless service with home internet under one monthly bill.
It has also rolled out customizable Build-A-Plan options and new entry-level wireless plans with more high-speed data, while continuing to invest aggressively in expanding its fiber network.
AT&T added 432,000 net monthly bill-paying wireless subscribers during the April to June period, flying past estimates of 338,500 additions, according to FactSet.
The bundled offerings also helped the company post record broadband additions, with 367,000 new fiber internet users and 279,000 fixed wireless subscribers.
About 42.5% of homes using AT&T’s advanced internet services are also subscribing to its wireless.
For the second quarter, total revenue stood at $31.6 billion, compared with estimates of $31.80 billion, according to data compiled by LSEG.
Adjusted earnings per share came in at 65 cents, compared with analysts’ average estimate of 59 cents.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shinjini Ganguli)
