Why did T's Q4 2024 earnings surprise positively?

AT&T's Q4 2024 earnings surprise was positive due to several key factors:

1. **Strong Mobility and Fiber Growth**: AT&T's mobility business showed strong performance with a 6% increase in EBITDA, primarily driven by growth in wireless service and consumer wireline segments. The company added 403,000 postpaid phone net adds, demonstrating solid subscriber growth. The fiber segment also contributed positively, with nearly 17% year-over-year revenue growth.
2. **Revenue Growth in Key Segments**: Despite a slight overall revenue decline, growth in wireless service and fiber revenues offset the impact of declines in business wireline and mobility equipment revenues. The growth in mobility service revenue, which grew by 4% year-over-year, and fiber revenue growth, contributed significantly to the positive earnings surprise.
3. **Cost Management and Debt Reduction**: AT&T's strategic focus on reducing net debt and increasing operating leverage is evident, with a target to achieve a net debt to adjusted EBITDA ratio of 2.5 times by the first half of next year. Effective cost management and cash flow generation, as indicated by the $5.1 billion free cash flow for the quarter, support the company's financial resilience and ability to invest in growth areas.

In summary, AT&T's Q4 2024 earnings surprise was positively influenced by strong growth in its mobility and fiber segments, effective cost management, and debt reduction strategies, which collectively contributed to the company's financial performance.