AT&T’s Q4 2024 results exceeded expectations, with the company attributing its performance to strong holiday-season growth in both its wireless and fiber segments. The telecommunications giant added 482,000 phone subscribers in the year’s final quarter, surpassing analysts’ predictions. This growth was driven by a surge in demand for AT&T’s bundled plans, which combine its growing 5G capabilities with high-speed fiber internet.

AT&T’s fiber network also saw a notable boost, adding 307,000 new subscribers in Q4, marking its highest quarterly fiber growth in recent history. The company’s focus on expanding its fiber infrastructure continues to yield dividends, with consumer broadband revenues climbing by 7.8% year over year.

“Customers have responded positively to our bundled offerings, which combine mobile and broadband services,” said AT&T CEO John Stankey. “This approach not only provides customers with more value but also supports our broader strategy of convergence in the market.”

Revenue for the quarter increased by 0.9%, reaching $32.3 billion, as mobility service revenue grew by 3.3%, supported by higher ARPU (average revenue per user) and strong phone sales. In addition to subscriber growth, AT&T also reported a 70% year-over-year increase in net income, totaling $4.4 billion, driven by the performance of its mobility and fiber segments.

As part of its long-term strategy, AT&T remains committed to expanding its fiber network. With over 28 million locations passed and plans to reach 50 million locations by 2029, the company’s investments in high-speed broadband are expected to further accelerate its subscriber growth in 2025.

INSIDER TAKE

The holiday-season surge in AT&T’s subscriber base is no coincidence. As the telecom market becomes increasingly competitive, bundling services like 5G mobile with fiber broadband offers customers compelling value propositions that make it easier for companies like AT&T to retain and acquire subscribers.

This strategy plays a significant role in the company’s broader push toward convergence, a model that combines multiple services (mobile, broadband, etc.) into a single offering. This approach not only drives up average revenue per user (ARPU) but also strengthens customer loyalty, which is key in an era where subscriber retention is as critical as acquisition.

The growth in 5G and fiber subscribers also signals AT&T’s continued focus on high-margin, recurring revenue streams—elements crucial to sustaining long-term business growth. Fiber, in particular, has become a more profitable service than traditional mobile, and AT&T is well-positioned to capitalize on this shift. By 2025, the company anticipates even more robust subscriber gains, supported by its infrastructure expansion and increasing convergence penetration.

While AT&T’s Business Wireline unit faces challenges due to declining legacy services, the company’s commitment to 5G and fiber broadband positions it to maintain a competitive edge. As consumer demand for faster internet and more robust mobile networks grows, AT&T’s focus on network expansion will likely continue to drive strong financial performance.