AT&T Reports Marginal Revenue Growth in Q3 2023, Emphasizes Investment in 5G and Fiber Connectivity

AT&T has reported total revenue of $30.4 billion in the third quarter of 2023, marking a 1 percent increase compared to the same period last year.
AT&T Q3 2023 resultThe telecommunications giant also disclosed that capital expenditures for the quarter were $4.6 billion, a significant decrease from $5.9 billion in the year-ago quarter. The total capital investment, including $1.0 billion in cash payments for vendor financing, reached $5.6 billion.

AT&T has added 468,000 monthly bill-paying wireless phone subscribers in the third quarter.

This slight uptick in revenue can be attributed to higher earnings in Mobility, Mexico, and Consumer Wireline divisions, although it was partially offset by lower revenues in Business Wireline.

AT&T said communication revenues reached $29.2 billion, marking a 0.4 percent increase, primarily driven by gains in Mobility and Consumer Wireline revenues, which outweighed the decline in Business Wireline.

AT&T said Business Wireline revenues experienced a 7.9 percent decrease, totaling $5.2 billion. This dip was due to decreased demand for legacy voice and data services and product simplification, partially offset by growth in connectivity services.

AT&T said Consumer Wireline revenues, on the other hand, saw a 4.6 percent increase, totaling $3.3 billion. This increase was powered by gains in broadband services that compensated for declines in legacy voice and data services. Notably, broadband revenues surged by 9.8 percent due to a 26.9 percent growth in fiber, partially offset by a 9.0 percent decline in non-fiber revenues. AT&T now expects full-year broadband revenue growth to be 7 percent or higher, compared to previous guidance of 5 percent or more.

AT&T’s Mexico division reported revenues of $992 million, reflecting a substantial 26.4 percent increase. This boost was attributed to growth in both service and equipment revenues. Service revenues surged by 20.2 percent, driven by subscriber and wholesale revenues. Equipment revenues marked a remarkable 41.6 percent increase due to higher sales.

AT&T’s CEO, John Stankey, in its earnings report emphasized the importance of their investments in 5G and fiber connectivity. He stated, “Our investments in 5G and fiber connectivity are fueling our growth engine. We’re gaining profitable customer relationships and becoming more efficient. This is powering our strong business performance and gives us the confidence to raise our full-year free cash flow guidance.”

As part of their commitment to enhancing connectivity in the United States, AT&T highlighted their achievements, including expanding their wireless and 5G networks, growing their consumer fiber network, and supporting AST SpaceMobile in facilitating the world’s first direct 5G voice call between two unmodified smartphones via a low-earth orbit satellite in space. AT&T’s expansion efforts aim to continue serving millions of consumers and business customers while advancing the nation’s technological infrastructure.