AT&T Inc. says that it added a net 296,000 devices to its contract-based plans in the first quarter, but the gain was due entirely to tablets, which carry lower monthly fees.
Excluding tablets, the carrier lost a net 69,000 devices from its contract-based plans, the first such loss.
The figures were announced Tuesday as the company reported a 3 percent gain in net income to $3.7 billion, or 67 cents per share.
Excluding the sale of an advertising business, adjusted earnings came to 64 cents per share, matching the expectation of analysts polled by FactSet.
Revenue fell nearly 2 percent to $31.36 billion, below the $31.74 billion that analysts were looking for.
Shares of the Dallas company are off 2 percent to $38.20 in after-hours trading.
Explore further: Media reaping profits from Internet (Update)