Telecom company AT&T has reported better than expected results in its second quarter earnings.
The company's earnings were 54 cents on an adjusted basis, compared to 51 cents a year ago and beating analysts' expectations of 53 cents.
Its revenue also grew 3.5% year on year to US$30.8 billion, once again beating expectations of US$30.46 billion.
AT&T chairman and CEO John Stankey attributes this to a growing network of locations and customers.
The company’s mobility service revenue also grew by 3.5% year-on-year to US$16.9 billion.
“Customers are increasingly choosing AT&T because we have the best technology and options for wireless and broadband connectivity, backed by the AT&T Guarantee,” he said.
“The milestones achieved this quarter – from passing more than 30 million customer locations with fibre and eclipsing 1 million total AT&T Internet Air customers, to our agreement to acquire substantially all of Lumen’s Mass Markets fibre business - strengthen the industry's best and leading connectivity portfolio.”
AT&T welcomed 401,000 postpaid wireless phone customers this quarter, which is lower than the 419,000 subscribers it added last year.
In the earnings report, the company revealed that it expects to realise US$6.5 billion to US$8.0 billion of cash tax savings during 2025-2027, according to the guidance provided at its 2024 Analyst & Investor Day due to tax provisions in the Trump administration's One Big Beautiful Bill Act.
This is set to reflect savings of US$1.5 to US$2 billion in 2025 and US$2.5 and US$3 billion in both 2026 and 202,7 and plans to invest these savings back into the business.
On the back of this, AT&T expects mobility service revenue to grow by 3% or more and predicts adjusted earnings per share of US$1.97 to US$2.07.
