AT&T Inc on Thursday missed Wall Street estimates for its first-quarter revenue, signaling intense competition from deep-pocketed rivals Verizon Communications Inc and T-Mobile US Inc.

Shares of the Dallas, Texas-based company fell nearly 4% in trading before the bell. The stock gained about 7% this year, as of Wednesday's close.

Much like other sectors, telecoms are facing the pinch of consumers reluctant to spend more for 5G adoption and broadband connections on the back of high prices and soaring interest rates.

Still, AT&T added 424,000 postpaid phone subscribers in the latest quarter, above Factset estimate of 422,800 additions. The wireless carrier's discounted offers and cheaper plans helped it lure more cost-conscious customers in a highly competitive market.

Analysts and investors generally watch postpaid phone figures closely as those customers pay a recurring monthly bill, making them valuable to the carriers.

Total revenue for the first quarter rose 1.4% to $30.1 billion, compared with $29.7 billion a year earlier. Analysts on average were expecting $30.27 billion, according to Refinitiv IBES data.

AT&T said the growth was also driven by higher revenue in broadband services, partly offseting lower equipment sales.

Income from continuing operations was $4.5 billion, or 57 cents per share, in the quarter, compared with $5.1 billion, or 65 cents per share, a year earlier.

Excluding items, the company earned 60 cents per share.

 

 

(Reporting by Tiyashi Datta in Bengaluru; Editing by Sherry Jacob-Phillips)