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Telecom conglomerate AT&T ( T ) reported Q1 earnings late Tuesday that topped expectations and in-line revenue, as it had a net loss of postpaid phone subscribers — those billed monthly — for the sixth quarter in a row amid fierce wireless competition. AT&T lost 363,000 postpaid phone customers, who are considered more lucrative than prepaid customers who buy minutes as needed. AT&T stock was down 1% in premarket trading Wednesday. T-Mobile US ( TMUS ) on Monday said it added 877,000 postpaid phone lines in Q1, while Verizon Communications ( VZ ) on Thursday reported a loss of 8,000. “AT&T has been a share donor for six consecutive quarters in postpaid handsets, which have by far the highest customer lifetime value,” said Paul de Sa, analyst at Bernstein Research, in a research note. Including tablet users, AT&T added 129,000 postpaid subscribers overall, also below Wall Street estimates. AT&T has focused on selling consumers product bundles of wireless and DirecTV video services. T-Mobile, meanwhile, has thrived with its Uncarrier-branded promotions, while Sprint ( S ) continues to compete aggressively on price, analysts say. Sprint had been losing postpaid phone subscribers for several years before recently reversing the trend. “Postpaid net adds came in light at 129,000 as AT&T simply refuses to aggressively compete and instead focus on profitability and other areas of the business,” said Colby Synesael, analyst at Cowen & Co., in a report. AT&T said Q1 earnings rose 11% to 72 cents per share, excluding items, topping analysts’ estimate of 69 cents. Including the acquisition of satellite broadcaster DirecTV, AT&T said revenue rose 24% to $40.53 billion, in line with views. AT&T said it lost 382,000 landline U-verse TV customers while DirecTV gained 328,000, up from 60,000 in the year-earlier period. AT&T had a net loss of 54,000 video subscribers in the March quarter. Scalper1 News
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