AT&T Sees Slowing Subscriber Growth but Plenty of Free Cash Flow

AT (NYSE: T) CFO Pascal Desroches gave investors a variety of updates while speaking at a technology, media, and telecommunications conference earlier this week. The message was mixed overall. The telecom giant is winning fewer postpaid phone subscribers and fewer fiber subscribers than expected due to various issues, but the situation is looking just fine in terms of profitability.

AT's core wireless business performed well during most of the pandemic, and it continued to thrive through last year. After the initial pandemic disruption passed in early 2020, AT was routinely adding between 600 thousand and 900 thousand net postpaid phone subscribers each quarter. This trend continued through the end of 2022.

This year, things have slowed down quite a bit. In the first quarter, AT managed to add just 424 thousand net postpaid phone subscribers. In the second quarter, according to Desroches' update, the company is on pace to add just over 300 thousand net postpaid phone subscribers.

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Source Fool.com