The AT&T logo is seen in a store window in Manhattan borough of New York City, New York City, U.S. January 19, 2022. REUTERS Brendan McDermid File Photo
WarnerMedia's growth comes as AT&T's media investments are unwinded and AT&T refocuss on its original business of providing phone and internet services. The Dallas-based company said it now expects to merge WarnerMedia with Discovery Inc DISCA.O in the second quarter.
The company's shares were up more than 2% in trading before the market opened.
AT&T has prioritized fiber internet business as an area of growth and added 271,000 net new customers during the quarter.
The total consolidated revenue was $41.0 billion in the quarter ended December 31, beating analysts' estimates of $40.44 billion, according to Refinitiv Data.
AT&T earned 78 cents per share, better than the average estimate of 75 cents, according to the Excluding items.
AT&T expects to see revenue growth in the low-single digit percentage range in the year 2022, including WarnerMedia and Xandr.
In 2022, the company expects to have earnings between $3.10 and $3.15 per share, less than analysts' average estimate of $3.21.
AT&T, a company that faces fierce competition from rivals Verizon and T-Mobile US TMUS.O, has deployed their 5 G technology, and forecasts for 2022 capital expenditure in the $20 billion range.