Reuters

(Reuters)

AT&T Posts Third-Quarter Earnings Miss

Earnings Reuters

AT&T Inc (T) said on Wednesday its quarterly revenue rose but by less than wall street anticipated as a wave of subscribers signed up for equipment financing plans that charge lower service fees.

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AT&T shares fell 0.9 percent to $33.75 after closing at $34.50 on the New York Stock Exchange.

The company reported a record low number of customer defections, but average revenue per phone user fell 8 percent from a year earlier.

AT&T added 2 million new wireless customers and 785,000 contract subscribers in the quarter.

Wireless service revenue was flat while equipment revenue increased 44 percent.

The No. 2 U.S. mobile provider said on Wednesday that excluding items it earned 63 cents per share, a penny below Wall Street expectations, according to Thomson Reuters I/B/E/S.

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Revenue rose 2.5 percent to $33 billion from $32.2 billion in the year-ago quarter.

(Reporting by Marina Lopes; Editing by Chris Reese and David Gregorio)

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