AT&T exceeds wireless subscriber estimates on demand for premium plans

:AT&T gained more wireless subscribers than expected in the third quarter, driven by the steady adoption of its higher-tier unlimited plans that come with perks including increased hotspot data, sending its shares up 3.1 per cent in premarket trading.
The U.S. telecom firm said on Wednesday it had added 403,000 net monthly bill-paying wireless phone subscribers in the July-September period, above Visible Alpha estimates of 393,430 additions.
Premium plans have helped AT&T stay competitive in the saturating U.S. telecom market where rivals Verizon and T-Mobile are bundling their offerings with streaming services such as Netflix and Max to attract customers.
Demand has also been growing for AT&T’s plans that allow customers to combine its high-speed fiber data with its wireless phone service for a discount. The company said 40 per cent of customers that use fiber also opt for its wireless plans.
Postpaid phone churn, or the number of customers canceling AT&T’s service monthly, was 0.78 per cent in the third quarter, helped by the company’s smartphone plans that offer new and existing customers the same promotions.
But revenue of $30.2 billion missed estimates of $30.44 billion, according to data compiled by LSEG, as the company’s mobility equipment sales took a hit from lower phone upgrade volumes.
Rival Verizon also reported a quarterly revenue miss on Tuesday due to the lull in phone upgrades. 
AT&T’s fiber business added 226,000 customers, missing expectations of 257,860 additions, according to Visible Alpha. This was mainly driven by a work stoppage that began in August in its southeast region and impacted fiber installations.
Operating expenses rose 14 per cent to $28.1 billion in the third quarter, compared with LSEG-compiled estimates of $22.31 billion. The rise in costs primarily stemmed from a $4.4 billion non-cash goodwill impairment charge associated with the business wireline unit, where customers are opting out of legacy services at a faster-than-expected pace.