AT&T Inc

AT&T delivered mixed results in the quarter with below-par revenues but profitability above expectations. The company continues to maintain consistently low churn rates while seeing an increase in the take rate for its high-value 5G and fiber plans, despite the significant promotional activity observed in some sections of its market. The company’s mobility segment is growing its subscriber base and gaining market share. They are also observing strong ARPU. As a result, wireless service revenues and EBITDA may increase, and margins may improve. Furthermore, AT&T invested in Consumer Wireline to expand its fiber coverage and provide customers with the finest access technology. The quarter’s postpaid phone churn was only 0.81%. Despite a slowdown in industry growth, their Business Solutions wireless service revenues increased by almost 7%. FirstNet also continues to be a major contributor to this growth. AT&T believes these results demonstrate that its customer-centric strategy is still generating the right amount of profitable and quality subscriber growth that will be long-lasting. We give AT&T, Inc. a ‘Hold’ rating with a revised target price.