What happened
Shares of AT&T (T 0.84%) jumped 4% on Thursday, following the release of the telecommunications titan's first-quarter earnings results.
So what
AT&T added 691,000 net postpaid phone customers, who subscribe to monthly bills and are typically the most profitable accounts for wireless service providers. The telecom giant also gained 113,000 prepaid phone customers.
Better still, AT&T is doing an excellent job of retaining its existing clients. Its postpaid phone churn rate checked in at an impressive 0.79%.
Image source: Getty Images.
AT&T also grew its broadband internet business during the quarter. AT&T Fiber added 289,000 net subscribers, with average revenue per user rising 5.9%.
"Our momentum in growing customer relationships is reaching historical levels," CEO John Stankey said in a press release. "We had our best first quarter for postpaid phone net adds in more than a decade and our fiber broadband net adds remain consistently strong."
All told, AT&T's revenue -- adjusted to exclude WarnerMedia and other divested businesses -- rose 2.5% to $29.7 billion, while its adjusted operating income was flat at $5.8 billion.
Now what
AT&T recently merged its WarnerMedia business with Discovery to form Warner Bros. Discovery (WBD -0.29%). AT&T is now a more streamlined company focused on its core wireless and broadband operations.
Management is excited about the strong demand for its fifth-generation (5G) wireless technology, and it's confident that the telecom leader can achieve its goal of generating roughly $16 billion in free cash flow in 2022.
"AT&T has entered a new era, meeting this opportunistic moment from a position of flexibility and strength thanks to our evolving networks, enhanced customer experience, growing 5G and fiber customer base, and a much stronger balance sheet," Stankey said.
