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AT&T gained a net 49,000 postpaid wireless subscribers in the first three months of the year, according to an underwhelming first quarter report released Wednesday.

The carrier reported total postpaid churn of 1.06 percent and said postpaid phone churn set a record low for a first quarter at 0.84 percent.

The results showed a net increase of 42,000 postpaid smartphones, but postpaid phones overall declined by a net of 22,000. Although the company called that a significant improvement compared to early 2017 — postpaid phone losses were also better than expectations on Wall Street — it fell short of Wells Fargo's projection of 70,000 in net postpaid phone additions.

Wells Fargo Senior Analyst Jennifer Fritzsche wrote that the results reflected "the competitive pressure [AT&T] is facing in each of its consumer segments."

The increase in overall postpaid accounts was attributed to increases in smart watches and other mobile electronics overcoming a net loss in tablets and computing devices.

The carrier also reported adding 241,000 net prepaid subscribers, including 192,000 net prepaid phones.

Total wireless revenues edged up compared to the previous first quarter to $17.4 billion due to a more than 50 percent increase in equipment revenues from increased overall additions and upgrades. Adjusted wireless earnings of $7.3 billion exceeded analyst forecasts.

Wireless service revenue, however, was down more than 7 percent year-over-year and fell short of Wells Fargo's projection.

"Our investment in customer growth and our integrated service offerings helped drive solid first-quarter subscriber gains across our wireless, video and broadband businesses," AT&T Chairman and CEO Randall Stephenson said in a statement. "We also moved quickly to deploy FirstNet, and we expect the buildout to accelerate as we go forward."

Overall, the company reported $38 billion in consolidated revenue and adjusted earnings per share of $0.85. Analysts surveyed by Thomson Reuters had projected $39.3 billion in revenue and $0.87 in earnings per share, according to The Wall Street Journal.

Analysts from MoffettNathanson wrote in a research note that although the wireless segment "did about what was expected for unit growth" while falling short on earnings, struggles in other segments — particularly DirecTV — hindered the overall results.

"All of AT&T's consolidated growth metrics are negative, and they are trending lower rather than higher," the note continued. "As has been the case since before AT&T acquired DirecTV, AT&T remains a company that is struggling to find a path to growth."

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