The telecom giant AT&T Inc. (NYSE:T) has reported financial results for the first quarter of 2015. As per the reports, it managed to announce better than expected earnings. Along with financial results, the company also announced that fewer wireless customers decided to switch to other networks in the previous quarter. AT&T had never witnessed such rate in any first quarter in the past.
As per the reports, AT&T has been awaiting regulatory approval for its proposal worth $48.5 billion to purchase DirecTV. It expects to save more cost in the coming months than it expected in the past. When the deal was executed a few months back, the company had thought of saving enough money on peculiar transactions, but on the basis of the current situation, it expects to save way more than that.
Apart from financial disclosures, AT&T also stated that it had managed to add another 441,000 contractual or postpaid customers in the first quarter. Apart from these customers, it also added 1.2 million wireless customers in 1Q2015. Even though the number of customers elevated at a good pace, but the average revenue per contract phone user dropped 9.6% on YOY basis. As soon as the announcement was made, investors responded positively in the stock market, as a result of which, the prices of AT&T’s stock increased 1.3% in after-hour trading. The closing price of its stocks was $32.86 in NYSE.
The net income of AT&T Inc. (NYSE:T) was 61 cents per share or $3.2 billion in 1Q2015 as compared to 70 cents per share or $3.65 billion in 1Q2014. The company announced that customer defection rate dropped to 1.02% in the first quarter of 2015 versus 1.07% a year ago. It claimed that the first quarter of 2015 was probably the best three-month period that it had witnessed in terms of employee churn.