AT&T Misses on Revenue from Cheaper Tablet Data Fees

Michael Teague |

AT&T Misses on Revenue from Cheaper Tablet Data FeesAT&T (T) reported net income for the first quarter of $3.7 billion, or $0.67 per share on revenue of $31.36 billion.

Adjusted earnings, excluding the sale of an advertising business, were at $0.64 per share, above the $0.60 earned in the prior-year period, and exactly what analysts had predicted.

Revenue, however, was nearly half a billion less than analyst expectations of $31.74 billion, and less than the prior year period when the company brought it $31.82 billion.

The company added 296,000 devices to contract-based plans, but all in the form of tablets carrying lower monthly fees. Overall, the AT&T posted its first ever loss on contract-based plans, and, excluding tablets, lost contract-based devices to the tune of 69,000.

This created a situation in which average revenue per contract user rose only 0.9 percent for Q1.

Company CFO John Stephens recognized the role of tablets in the decrease in spending for the period, noting that the company’s cheap data plans for the devices are not set in stone. “We put that in place to see how it would work, to stimulate demand,” but later in the conference call said that it was not necessarily a “permanent offering.”

The company’s shares closed regular trading at $39 on a slight gain of 0.7 percent, but slipped 1.54 in afterhours to $38.40.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
GPAC Global Partner Acquisition Corp. 9.80 0.00 0.00 0
T AT&T Inc. 36.43 -0.27 -0.74 32,874,445


Emerging Growth

GSV Capital Corp

GSV Capital Corp is an externally managed, non-diversified closed-end management investment company. The Company has elected to be treated as a business development company.

Private Markets

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…


Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.