AT&T loses 191,000 postpaid phone subscribers in Q1
Revenue attributed to AT&T's wireless division declined 4.4% year-over-year to $17.2 billion, thanks to lower equipment and services revenue. Still, there were some positives. Postpaid phone churn was at a record low of .90%. Operating margins were a strong 30.1%. During the three months, 85% of postpaid phone subscribers were using a Mobile Share plan that does not offer a phone subsidy. 82% of all equipment upgrades and gross smartphone additions during the quarter came from sales made under AT&T's equipment installment program, including AT&T Next. That was up from the 80% of phone upgrades and gross additions that were related to an EIP during the first Quarter of 2016.
AT&T says that because it cannot predict handset sales in advance, it no longer will forecast revenue for future quarters. After the earnings were reported, the stock dropped 11 cents after-hours to $39.83