AT&T Shares Dip as Pricey Mobile Promotions Weigh on Revenue

AT&T Inc. reported revenue that fell slightly short of analysts’ estimates in the third quarter, resulting from a heavy promotional campaign to woo new customers amid a fiercely competitive mobile phone market.

The Dallas-based carrier is up against “increased marketplace activity” that shows no sign of slowing through the end of the year, Chief Executive Officer John Stankey said on a call to discuss results on Wednesday. Average revenue per user also slid, reflecting pricing cuts to attract customers in niche markets such as the over-55 crowd. The shares dropped 1.1% Wednesday late-morning in New York.