AT&T Concludes 2024 with Remarkable Growth in 5G and Fiber Subscriber Base

AT&T Inc. (NYSE: T) has reported impressive performance in the fourth quarter and throughout 2024, demonstrating substantial progress in attracting and retaining profitable 5G and fiber subscribers. This success comes as the company reiterates its commitment to delivering value to customers and shareholders alike.

Financial Overview

In the fourth quarter, AT&T's revenues reached $32.3 billion, reflecting an increase from $32.0 billion in the same period the previous year. The diluted earnings per share (EPS) for the quarter was reported at $0.56, with an adjusted EPS of $0.54. The operating income tallied up to $5.3 billion, consistent with the previous year's performance, while the adjusted operating income was slightly higher at $5.4 billion.

For the full year, AT&T generated revenues of $122.3 billion, almost matching the $122.4 billion of the prior year. Here, diluted EPS was $1.49, down from $1.97 in the previous year, while the adjusted EPS stood at $2.26, compared to $2.41 in 2023. Meanwhile, the operating income for the year was reported at $19.0 billion, down from $23.5 billion in 2023. This trend of stabilizing revenues contrasted other financial metrics, such as cash from operating activities, which rose to $38.8 billion, a slight year-over-year increase.

Subscriber Growth and Metrics

AT&T experienced significant subscriber growth in its mobility and fiber sectors during Q4 and 2024. In the fourth quarter alone, the company added 482,000 postpaid phone subscribers, achieving one of the industry’s lowest churn rates at 0.85%. Mobility service revenues increased by 3.3% year-over-year, reaching $16.6 billion.

In relation to fiber, AT&T added 307,000 subscribers, marking the 20th consecutive quarter it has recorded at least 200,000 net fiber adds. Broadband revenues, primarily driven by fiber offerings, grew by 7.8% to reach $2.9 billion in the fourth quarter.

2025 Outlook

Looking ahead, AT&T remains optimistic about its financial prospects. The company anticipates a low-single-digit growth rate for consolidated service revenues and expects mobility service revenue growth to fall at the higher end of 2% to 3%. Furthermore, consumer fiber broadband revenues are predicted to grow in the mid-teens.

The firm plans to continue its commitment to capital investment, projecting expenditures to range around $22 billion in 2025, with the expectation of generating more than $16 billion in free cash flow excluding DIRECTV. The company also aims to lower its net-debt-to-adjusted EBITDA ratio to around 2.5x by the first half of 2025, reflecting its dedication to maintaining financial strength and operational resilience. Notably, AT&T is poised to initiate share repurchases in the latter half of 2025, indicating a return of capital to its shareholders as growth strategies materialize.

Conclusion

In summary, AT&T's exceptional performance during 2024 not only underscores its effective operational strategies and customer-centric initiatives but also lays a robust foundation for growth in 2025. With significant advancements in subscriber base expansion and continuous revenue growth, AT&T remains resolute in its mission to enhance connectivity and value for its extensive consumer and business customer base. As the largest player in the fiber network landscape, the company is well-positioned to leverage its capabilities for sustained success amidst an evolving telecommunications landscape.