AT&T reports revenue growth as customer additions top one million

US telecom operator AT&T reported third-quarter revenue of $32.3 billion, up 5.3%, alongside more than one million customer additions across fiber broadband, fixed-wireless internet and mobile services. It was the second consecutive quarter that additions exceeded that mark, according to RCR Wireless’s October 22 report.

The company also moved its full-year earnings growth forecast toward the top of its existing range. The stronger outlook came alongside lower fiber revenue per customer and a higher debt ratio.

More customers, lower fiber revenue per user

AT&T groups fiber, fixed-wireless and mobile services under its “advanced connectivity” category. Fiber carries broadband over optical cables; fixed-wireless internet connects a home or business through a wireless network rather than a cable to the premises.

Service revenue from those three categories reached $23.9 billion, up 6.1%. Home broadband service revenue grew 23% year on year, helped by a wider fiber network and greater holdings of mid-band radio frequencies, RCR Wireless reported.

Fiber average revenue per user fell 4%. AT&T attributed the decline to introductory offers, discounts for customers combining home internet and wireless services, and lower-revenue customers acquired from Lumen. The company expects a similar decline in the fourth quarter.

Higher earnings and a stronger forecast

EBITDA means earnings before interest, taxes, depreciation and amortisation. It is not the same as net profit, and the per-share figure above is an adjusted earnings measure.

AT&T now forecasts full-year EBITDA growth at the upper end of its existing 3%–4% range. That is a forecast for the full year, rather than an achieved result.

Debt ratio rises as AT&T agrees to sell its Mexican business

AT&T’s net debt-to-adjusted-EBITDA ratio rose to 3.13 times from 2.68 times during the quarter. The ratio compares debt after cash with adjusted earnings before interest, taxes, depreciation and amortisation.

RCR Wireless reported that AT&T agreed to sell AT&T Mexico for $2 billion in cash to a joint venture owned equally by Grupo Televisa and Fintech Holdings. The deal is an agreement to sell the business, not a completed disposal.

AT&T targets a return to a debt ratio of around 2.5 times during 2029. It expects excess cash flow, debt repayment and proceeds from its planned fiber joint venture and Mexico wireless sale to support that goal.