Shares of AT&T Inc. recorded only one annual increase in the last five calendar years. The main competitors are Verizon Communications Inc. and T-Mobile US Inc. has achieved the opposite result, with shares of each side rising over the past four or five years.
But after years of disappointment, AT&T
T,
is slowly gaining more favor on Wall Street. The stock is currently on track to post positive gains for 2022.
Part of that warmer reception may be the result of the company’s recent moves to phase out the media and video businesses, leaving a simpler story focusing on wireless. But AT&T also wants to credit the steps it’s taking in that wireless business.
CEO Jeff McElfresh said at a UBS conference Tuesday morning it will “give investors some confidence” that “AT&T’s growth performance is not simply a result of promotions.” price tag or heavy equipment supply”. AlphaSense. “There’s something else going on and why AT&T can drive high-quality growth, increase volume, and drive performance in the business.”
AT&T has achieved success thanks to its level of advertising, but the company maintains its story go beyond wireless transactionssomething McElfresh repeated on Tuesday.
“The growth we’ve experienced at AT&T isn’t just because we have a device promotion,” he said. “We have a number of other actions in place, not least of which our FirstNet program in serving first responders continues to perform exceptionally well, especially in the wireless space. this, so I think our program is sustainable.”
Admittedly, wireless promotions are complicated. Companies can offer different offers to different types of consumers, and sometimes offer offers for things like free streaming services that blur the comparisons between promotions. from different carriers.
That said, in McElfresh’s view, AT&T “wasn’t the most active company” with Black Friday promotions, the company wasn’t “the most active company on the market during this period of time.” a long time”.
(A analysis of MarketWatch data from MoffettNathanson and Navi seems to indicate that AT&T promotions for converters are lower than T-Mobile’s.)
TMUS,
and Verizon
VZ,
offered, although the company’s deals for current upgraders are higher.)
One of AT&T’s initiatives in recent quarters has been to offer the same offers to existing customers as it does to new customers. Normally, companies would offer better deals to new customers to encourage them to switch, but AT&T has said its simpler messaging about pricing and plans has allowed them to get better yields on its marketing dollars.
McElfresh shared Tuesday that AT&T is “getting compelling customers with a very compelling ARPU.” [average revenue per user] and our churn rate is low.”
