The AT&T Inc. (NYSE: T) stock price edged 1.76% higher after releasing the financial results for the second quarter of its fiscal year. The telecommunications company generated revenues worth $29.9 billion, marking a slight improvement of 0.9% from last year’s figures.
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The company noted that it continues to attract high-quality customers due to its most reliable 5G network and boasts of the country’s largest consumer fiber network. The company’s cash generated from operating activities was $9.9 billion, up 28.2% from last year and up $1.2 billion in the first half of 2023 compared to the first half of 2022.
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AT&T beat analysts’ estimates of free cash flow generation by generating free cash flows worth $4.2 billion in Q2 2022, beating analysts' estimates of $3.60 billion. The free cash flows were $1.0 billion higher in H1 2023 compared to H1 2022. The company expects to generate free cash flows worth $16 billion or more this year.
Some operational milestones achieved by the company include the addition of 326,000 postpaid phone net adds with continued strong ARPU growth and historically low churn levels. The company also added 251,000 AT&T Fiber net adds. This was the 14th straight quarter of over 200,000 net adds.
The company added many wireless monthly paying subscribers by offering them cheaper plans. The results marked an improvement from Q1 and showed the benefits of a cost-cutting plan that helped shed over $1 billion in operating expenses during the reported period through measures such as reducing office locations.
John Stankey, the AT&T CEO, said: “The direction we set three years ago is sound, and we’re on the right trajectory. Compared to last year, Mobility service and broadband revenues are up, Adjusted EBITDA is up, free cash flow is up, Mobility and Consumer Wireline margins are up, and customer lifetime values are up,”
“We’re focused on growing the right way, adding profitable 5G and fiber customers. We are also committing to an incremental $2 billion-plus in cost savings beyond the $6 billion we have accomplished over this period, reflecting our continued march to operating the company in a more focused and streamlined fashion.”
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AT&T (T) stock price.
The AT&T (T) stock price rose 1.76% to trade at $15.06, from Tuesday’s closing price of $14.80.
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