AT&T's fiber revenue per user to keep sliding as bundle discounts weigh
T•AT&T expects average revenue per fiber customer to keep falling in the fourth quarter after a 4% decline in the third, as discounted bundles weigh on spending per user. The company beat quarterly revenue and profit estimates and raised its annual adjusted profit forecast to about $2.40 per share.
1. Fiber revenue declines
AT&T expects average revenue per fiber customer to extend its third-quarter decline into the fourth quarter as more customers sign up for discounted bundles. Average revenue per user across its fiber base fell 4% in the third quarter, reflecting discounts, introductory pricing in new markets and the addition of lower-priced Lumen customers.
2. Bundles attract customers
About 43% of households signing up for AT&T internet services also opted for its wireless plans. CEO John Stankey said the company had “every reason to believe that a converged customer that's sitting on fiber is going to be a sticky and high lifetime value customer.”
3. Outlook and subscribers
AT&T added 379,000 net monthly bill-paying wireless subscribers in the quarter, compared with 379,300 additions estimated by FactSet. It raised its annual adjusted profit forecast to about $2.40 per share, from a prior range of $2.25 to $2.35, after beating quarterly revenue and profit estimates.
