AT&T Inc. (NYSE: T) delivered a robust financial performance in the first quarter of 2025, reaffirming its position as a leader in the telecommunications industry with significant growth in 5G and fiber subscriber additions. The company has reiterated its full-year 2025 financial and operational guidance, signaling confidence in sustained growth and profitability.
Total revenues reached \(30.6 billion, marking a 2.0% increase from \)30.0 billion in the prior year quarter.
Diluted Earnings Per Share (EPS) rose to \(0.61 from \)0.47, supported by adjusted EPS of \(0.51, up from \)0.48.
Operating income was stable at \(5.8 billion with an adjusted operating income improvement to \)6.4 billion from $6.0 billion.
Net income soared to \(4.7 billion versus \)3.8 billion the previous year.
Adjusted EBITDA grew to \(11.5 billion from \)11.0 billion, underscoring increasing operational efficiency.
Cash from operating activities totaled \(9.0 billion, a significant increase from \)7.5 billion, bolstered by $1.4 billion cash flows related to DIRECTV.
Capital expenditures stood at $4.3 billion, fueling continued fiber and 5G network expansions.
Free cash flow improved to \(3.1 billion from \)2.8 billion, reflecting stronger cash generation capabilities.
AT&T’s strategic focus on high-quality and profitable subscriber growth is evident with: - 324,000 postpaid phone net additions and a postpaid phone churn rate of 0.83%, showcasing strong customer retention. - Mobility service revenues increased by 4.1% year-over-year to \(16.7 billion. - **261,000 AT&T Fiber net adds** contributed to a 19.0% year-over-year growth in consumer fiber broadband revenues, now totaling \)2.1 billion. - 29.5 million consumer and business locations are now passed with fiber, translating into broader market coverage and future opportunity.
Communications Segment revenues grew by 2.4% to \(29.6 billion with operating income increasing 3.6% to \)7.0 billion.
Mobility Segment showed a 4.7% increase in operating revenues (\(21.57 billion) driven by service revenue growth and equipment sales, with EBITDA posting a 3.5% rise to \)9.3 billion.
Business Wireline faced pressure with a 9.1% revenue decline, primarily due to secular decline in legacy services but partially offset by fiber growth.
Consumer Wireline experienced a 5.1% revenue rise (to $3.5 billion) led by strong fiber broadband adoption and broadband ARPU growth of 7.4%.
Latin America segment experienced an 8.7% revenue decrease impacted by foreign exchange but improved operating income to \(43 million from \)3 million.
AT&T reported total debt of \(126.2 billion and net debt of \)119.1 billion.
The company operates within its net leverage target with net debt-to-adjusted EBITDA in the 2.5x range, emphasizing disciplined balance sheet management.
AT&T projects sustained growth and investment for 2025 with: - Consolidated service revenue expected to grow in the low-single-digit range. - Mobility service revenue growth targeted at the higher end of 2-3%. - Consumer fiber broadband revenue forecasted for mid-teen growth. - Adjusted EBITDA growth of 3% or better. - Capital investment to remain around \(22 billion. - Free cash flow anticipated to exceed \)16 billion. - Expected completion of the DIRECTV stake sale by mid-2025.
Consistent with AT&T’s 2024 Analyst & Investor Day priorities, the company continues to prioritize its fiber and 5G network expansions for enhanced customer experience and market penetration. The recurring themes from prior earnings calls highlight a commitment to transformation, operational efficiencies, and capital discipline—factors evident in the current quarter’s robust cash flow and profitability metrics.
The financial results affirm AT&T’s success in navigating a highly competitive telecommunications market by focusing on profitable subscriber growth, operational efficiency, and disciplined capital allocation. The expanding fiber footprint and 5G service growth position AT&T strongly for sustained competitive advantage.
For further details, please refer to the AT&T 8-K Report Q1 2025.
telecommunications, 5G_growth, fiber_broadband_expansion, AT&T_financials, capital_allocation