Background on AT&T in Mexico
AT&T, a prominent telecommunications company in the United States, has a significant presence in Mexico’s mobile market. It ranks as the second-largest operator based on revenue, user base, and mobile traffic in Mexico. The company’s performance is crucial to understanding the broader telecommunications landscape in the country.
First Quarter of 2025: A Difficult Start
In the first quarter of 2025, AT&T encountered a challenging period. The company reported a decrease of 77.62% in net additions of consumers compared to the same period in the previous year. Additionally, AT&T’s reseller business shrank by 35.61%, and its primary income source, service revenue, declined by 10.86%.
Financial Performance
AT&T’s revenue for the first quarter of 2025 totaled $971 million, representing an 8.65% decrease from the same period in 2024. However, it’s essential to note that the 2024 quarter was also unusual for AT&T, as the company did not anticipate a 20.38% growth in revenue compared to the first quarter of 2023.
Economic Context
The Mexican economy also experienced changes between the first quarters of 2023, 2024, and 2025. The real GDP growth was 1% in Q1 2023, 2% in Q1 2024, and an estimated contraction of 0.4% in Q1 2025. These economic factors provide context for AT&T’s financial performance in Mexico.
User Base Growth
Despite the challenging first quarter, AT&T’s user base in Mexico continued to grow. Comparing the first quarters of 2020 through 2025, the total consumer base expanded by 5.11% in Q1 2025 compared to 2024. Moreover, this growth surpasses the 3.91% increase seen in Q1 2024 compared to Q1 2023.
- From Q1 2020 to Q1 2025, AT&T’s total user base increased by 23.22%.
- In prepaid services, AT&T’s user base grew by 3.78% in Q1 2025.
- The postpaid segment showed more significant growth, with AT&T’s contract-based customer base increasing by 12.05% in Q1 2025, following increases of 7.62% in Q1 2024, 3.38% in Q1 2023, and 1.79% in Q1 2022. This represents a reversal from the 4.77% decline in Q1 2021.
AT&T’s Postpaid Strategy
The postpaid segment has been a key growth area for AT&T in Mexico, accounting for 25.4% of its business as of the end of March 2025. Despite the difficult Q1 2025, AT&T emphasized its commitment to growth and resilience in the face of macroeconomic and competitive challenges.
“Making a difference in the market has been challenging, but we have demonstrated consistent performance and continue to grow despite the complex macroeconomic and competitive environment,” said AT&T in a statement.
Key Questions and Answers
- Q: How did AT&T’s revenue perform in Q1 2025 compared to 2024? A: AT&T’s revenue in Q1 2025 was $971 million, an 8.65% decrease from Q1 2024.
- Q: What was the impact on AT&T’s user base in Mexico during this period? A: Despite the challenging quarter, AT&T’s total user base in Mexico grew by 5.11% compared to Q1 2024, with the postpaid segment accounting for 25.4% of its business.
- Q: How did the Mexican economy influence AT&T’s performance? A: The Mexican economy experienced changes between Q1 2023, 2024, and 2025, with real GDP growth of 1% in Q1 2023, 2% in Q1 2024, and an estimated contraction of 0.4% in Q1 2025.
