AT&T Adds More Wireless, Broadband Subscribers
Telecommunications giant AT&T Inc. (NYSE: T) said last night that it expects to add 500,000 new postpaid wireless subscribers to its rolls in the second quarter. The company also said it expects stronger growth in its U-verse wireline broadband and TV services.
AT&T added nearly 300,000 postpaid wireless subscribers in the first quarter, with a burst of 365,000 new tablet subscriptions leading net additions of connected devices totaling 431,000. With more than half the U.S. adult population already owning smartphones - and 90% owning a cell phone of some kind - AT&T and its chief rival, Verizon Communications Inc. (NYSE: VZ), need to keep finding ways to boost subscriber numbers.
AT&T reiterated its guidance for revenue growth of 2% in 2013. The company also expects second-quarter wireless EBITDA margins to be comparable to the first quarter's 43.2%.
A somewhat less-rosy outlook is related the company's consolidated margins, which AT&T now expects to be down year-over-year. The company said this is due to "strong consolidated customer additions and investments in new growth opportunities." In other words, it is getting more costly to keep adding subscribers.
AT&T's shares are inactive in the premarket this morning, having closed last night at $35.81 in a 52-week range of $32.71 to $39.00.
Filed under: 24/7 Wall St. Wire, Telecom, Telecom & Wireless, Wireless Tagged: T, VZ