AT&T Inc (NYSE:T) stock fell 1.31% (As on April 25, 11:07:24 AM UTC-4, Source: Google Finance) after the company surpassed Wall Street expectations for first-quarter wireless subscriber additions and free cash flow as more people purchased its higher-tier unlimited plans. AT&T added 349,000 net monthly bill-paying wireless phone subscribers in the first quarter, flying past expectations of 286,800 additions, according to five analysts polled by FactSet. AT&T’s efforts to expand its fiber network also helped it post a 7.7% increase in broadband revenue for the period. AT&T’s free cash flow more than tripled to $ 3.1 billion, topping estimates of $2.53 billion, according to Visible Alpha. The telecom giant has been leaning on its 5G rollouts and plans that are usually cheaper than rivals such as Verizon to appeal to more budget-conscious consumers and drive growth in the competitive U.S. market. The company finished the first quarter with net debt to adjusted EBITDA of 2.9x and continues to expect to reach the target in the 2.5x range in the first half of 2025.

Moreover, in the quarter, Business Wireline EBITDA was down 16.5% as the industry-wide secular decline of legacy voice continues. The wireless service revenues grew 4.6% in the first quarter, outpacing the overall Mobility services revenue growth. The postpaid phone ARPU was $55.57. This was up nearly 1% year-over-year, largely driven by higher ARPU and legacy plans.

T in the first quarter of FY 24 has reported the adjusted earnings per share of 55 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 55 cents. The company had reported the adjusted revenue of $30 billion in the first quarter of FY 24, missing the analysts’ estimates for revenue of $30.54 billion. Adjusted EBITDA was up 4.3% for the quarter as growth in Mobility, Consumer Wireline and Mexico were partially offset by a continued decline in Business Wireline.

Additionally, Cash from operating activities came in at $7.5 billion versus $6.7 billion last year. Capital investment for the quarter was $4.6 billion, down about $1.8 billion compared to the prior year. Capital expenditures were $3.8 billion compared to $4.3 billion in the prior year.

For the full year, AT&T reiterates guidance, expects wireless service revenue growth to be in the 3% range, Broadband revenue growth of 7%+, Adjusted EBITDA growth to be in the 3% range, Capital investment to be in the $21-$22 billion range, Free cash flow to be in the $17-$18 billion range and Adjusted EPS to be in the $2.15-$2.25 range.