AT&T dials up strong revenue as wireless contract sales increase

AT&T last night reported a strong first quarter, with its best revenue growth in more than two years.

America’s second largest telecoms company said last night that its results had been boosted by increased sales of wireless plans.

Randall Stephenson, AT&T chairman and chief executive, said: “Customers really like the new mobility value proposition and are choosing to move off device subsidies to simpler pricing while at the same time, they are continuing to move to smartphones with larger data plans.”

AT&T said it added 625,000 customers who signed long-term service contracts, the most in the first quarter in five years, compared with 296,000 a year earlier and 566,000 in the fourth quarter.

For the three months ended 31 March, AT&T’s consolidated revenues were $32.5bn (£19.3bn), up 3.6 per cent on a year ago.

Earnings edged 1.3 per cent lower to $3.65bn in the quarter, slightly beating forecasts.

The company said it will pay around $1.2bn in integration costs for Leap Wireless over the next two years.

AT&T raised its full-year target for revenue growth to four per cent. Despite beating forecasts, the firm’s shares fell in after hours trading.