AT&T Inc. (NYSE:T) stock rose 0.45% (As on October 21, 11:52:16 AM UTC-4, Source: Google Finance) after the company raised its annual profit view and reported a better-than-expected adjusted profit in Q3 on strong demand for its phone and internet services. The company’s promotional offers on wireless plans and smartphones helped it add 708,000 net new monthly bill-paying wireless phone subscribers. The carrier also added 338,000 fibre internet customers in the third quarter and held it on track to achieve its annual free cash flow target of USD 14 billion. Internet of Things (IoT) connections, including wholesale, have now reached more than 100 million. Income from continuing operations was USD 6.3 billion compared with USD 5 billion a year earlier. Cash from operating activities from continuing operations was $10.1 billion, up $0.8 billion year over year. Capital expenditures from continuing operations were $5.9 billion in the quarter, up $1.5 billion year over year. Capital investment from continuing operations, which includes $0.9 billion of cash payments for vendor financing, totaled $6.8 billion. Free cash flow from continuing operations was $3.8 billion for the quarter. At the end of the third quarter, net debt was $131.1 billion with net debt-to-adjusted EBITDA of 3.22x.

T in the third quarter of FY 22 has reported the adjusted earnings per share of 68 cents, beating the analysts’ estimates for the adjusted earnings per share of 61 cents. The company had reported 4.1 percent fall in the adjusted revenue to $30 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $29.87 billion. This is due to the impact of the U.S. Video separation in July 2021. Excluding the impact of U.S. Video, operating revenues for standalone AT&T were up 3.1%, from $29.1 billion in the year-ago quarter. This increase primarily reflects higher Mobility revenues, and to a lesser extent Consumer Wireline and Mexico, partly offset by lower Business Wireline revenues. Operating income from continuing operations was $6.0 billion versus $6.2 billion in the year-ago quarter.

Moreover, Mobility Revenues were up 6.0% year over year to $20.3 billion due to higher service and equipment revenues. Service revenues were $15.3 billion, up 5.6% year over year, primarily driven by subscriber and postpaid ARPU growth. Equipment revenues were $4.9 billion, up 7.2% year over year, driven by increased sales and mix of higher-priced smartphones.