AT&T Inc (NYSE:T) stock rose 1.98% (As on July 25, 11:22:27 AM UTC-4, Source: Google Finance) after the company exceeded market expectations for wireless subscriber additions in the second quarter, as the telecom operator’s higher-tier unlimited plans attracted customers. The telecom giant saw its monthly bill-paying wireless phone subscribers jump by 419,000 during the three months, compared with expectations of 284,800 additions, according to five analysts polled by FactSet. This increase was driven by the company’s higher-tier unlimited plans, which attracted budget-conscious customers amid tough competition from T-Mobile and Verizon. AT&T’s unlimited plans that are usually priced lower than those of rivals have helped the company add budget-conscious customers amid tough competition from T-Mobile and Verizon. That has also helped AT&T retain customers better than rivals, with its postpaid phone churn- the number of people disconnecting from a company’s service – coming at 0.70%, the second lowest reported for a second quarter. Free cash flow, a metric that helps determine dividend payouts, rose more than 9% to $4.6 billion, beating LSEG estimates of $4.22 billion. However, slower phone upgrades in the U.S. weighed on AT&T’s revenue, mirroring comments from Verizon. Mobility equipment revenue was down 8% in April-June period.

T in the second quarter of FY 24 has reported the adjusted earnings per share of 57 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 57 cents. The company had reported the adjusted revenue decline of 0.4 percent to $29.8 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue of $29.92 billion, according to LSEG data. The Dallas telecom giant saw second-quarter net income fall to $3.6 billion from $4.49 billion a year earlier. Communications revenue decreased 0.9% year over year to $28.58 billion. Within mobility, service revenue rose 3.4% to $16.28 billion, while equipment revenue dropped 8% to $4.2 billion due to lower volumes. Consumer wireline rose 3% to $3.35 billion, boosted by broadband gains. Business wireline revenue fell 9.9% to $4.76 billion amid reduced demand for legacy voice and data services.

Moreover, total operating expenses rose to $24.04 billion from $23.51 billion in the prior-year quarter. The increase was due to higher depreciation related to the company’s continued investment in fiber and 5G technology, accelerated depreciation on wireless network equipment and restructuring charges.

AT&T continues to project adjusted EPS in a range of $2.15 to $2.25 for 2024, while the Street is looking for $2.21. The company said it reiterated its revenue growth outlook in “the 3% range” for wireless service and more than 7% for broadband.