AT&T Nets 512K Subscribers from Lumen Fiber Acquisition in Q1
AT&T’s first-quarter results included contributions from the Lumen fiber business acquired in February, boosting residential internet additions by 512,000, with 45% also taking wireless service. Free cash flow dipped to $2.5 billion from $3.1 billion as AT&T ramps up $250 billion infrastructure spending, spotlighting the impact of the Lumen divestiture.
1. AT&T Q1 Includes Lumen Fiber Unit
AT&T’s first-quarter report cited contributions from the Lumen fiber business acquired in February, with 512,000 net new residential internet customers and 45% bundling wireless service. The integration of Lumen’s network expanded AT&T’s advanced connectivity segment, underpinning the company’s 2.9% year-over-year revenue growth to $31.5 billion.
2. Free Cash Flow Impact and Infrastructure Spending
Free cash flow decreased to $2.5 billion from $3.1 billion a year ago as AT&T accelerated capital investments for fiber deployment. The company pledged $250 billion in infrastructure spending over the next five years, targeting 40 million fiber locations by year-end and 60 million by 2030.
3. Implications for Lumen Technologies
The divestiture removes a fast-growing segment but injects significant liquidity into Lumen, reshaping its revenue base. Lumen will now concentrate on legacy enterprise networking and software services, using proceeds to bolster core operations and fund strategic growth initiatives.