‘As we reposition the focus of the organization [and as] we move from spending most of our time in the Fortune 1000 to a broader exposure to the business market, I do see those volumes starting to take off, and I see our distribution starting to ramp. They’re just not doing so at the rate and pace of some of the decline in the legacy revenue base,’ says AT&T CEO John Stankey.

AT&T is seeing “green shoots” in its Business Wireline segment, despite the quarterly declines the carrier has seen in the business in 2024, according to CEO John Stankey.

The overall Business Wireline segment, which includes AT&T’s advanced Ethernet-based fiber services, IP voice and managed professional services as well as traditional data services, fell 11.87 percent during third-quarter 2024 to $4.60 billion from $5.22 billion a year ago due to declines in legacy voice revenue.

AT&T has been on a path toward returning the carrier to its core connectivity business and this effort, said Stankey, will help AT&T recapture business customers.

“As we reposition the focus of the organization [and as] we move from spending most of our time in the Fortune 1000 to a broader exposure to the business market, I do see those volumes starting to take off, and I see our distribution starting to ramp. They’re just not doing so at the rate and pace of some of the decline in the legacy revenue base,” Stankey said during the carrier’s third-quarter 2024 earnings call Wednesday morning.

Related: AT&T’s ‘Endgame’ Is To Boost Business Revenue Through 5G, Fiber, CEO Says]

AT&T plans to reach more small- and midsize-business customers through next-generation services such as 5G, Stankey said. The carrier wants to scale its distribution to this market segment and wants to work with partners that can help it expand its footprint, he added.

“It’s just a technology shift. In some cases, businesses have traditionally purchased wireline services that are now migrating certain products and services to wireless. I think our product portfolio is now starting to evolve on a combined basis. … I’m pretty confident we’re going to make that pivot,” he said.

Dallas-based AT&T Business today provides services to nearly all Fortune 1000 companies.

Third-Quarter 2024 Results

AT&T’s mobility segment revenue totaled $21.05 billion during the quarter, a 1.7 percent increase compared with $20.69 billion in the same quarter a year ago. The overall communications business, which includes high-speed internet, video and legacy voice services, totaled $29.07 billion during the quarter compared with $29.24 billion in the third quarter of 2023, a modest 0.5 percent decrease.

Mobility Services revenue climbed once again by 3.9 percent to $16.54 billion, up from $15.91 billion a year ago. Mobility Equipment revenue, on the other hand, declined 7.3 percent to $4.51 billion during the quarter compared with $4.87 billion a year ago.

Business Wireline services decreased 13 percent during the quarter, while Business Wireline equipment rose 41 percent.

One bright spot of the business portfolio was AT&T Business Solutions wireless revenue, which grew 4.4 percent during the quarter. AT&T CFO Pascal Desroches has said that Business Solutions is poised to capture incremental growth opportunities in fiber, 5G and AT&T Internet Air for Business, a service that was launched nationwide in late March.

Desroches said earlier in the year that the company expects Business Wireline revenue trends to continue to decline for the rest of the first half of 2024. He added that enterprise relationships are key to driving future connectivity growth.

The company had 403,000 postpaid phone adds during the third quarter of the year.

Total operating revenue for the first quarter ended Sept. 30 was $30.21 billion, a modest decrease of 0.5 percent from $30.35 billion in the same quarter one year earlier that the carrier in part contributed to its continued decline in business wireline revenue. Diluted earnings per share during AT&T’s fiscal third quarter was negative 3 cents, compared with 48 cents a year ago.

AT&T’s third-quarter 2024 results marginally missed Wall Street’s expectations during the quarter.