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AT&T earnings: 63 cents per share, vs expected EPS of 62 cents

AT&T topped analysts' profit estimates by a penny on Wednesday, but revenue came in light as core subscribers declined.

AT&T reported earnings of 63 cents per share, beating expectations of 62 cents. The telecom giant reported revenue of $32.57 billion, versus Wall Street estimates of $32.82 billion.

The company reported 1.2 million total wireless net adds, including 441,000 postpaid users, or core subscribers. That's down from the 854,000 core subscribers it added during the last quarter and the 625,000 post subscribers it added in the year-earlier period. AT&T reported a wireless postpaid churn of 1.02 percent, a record performance for the first quarter.

"The first quarter was a significant step in a transformative year for AT&T," said Randall Stephenson, AT&T's CEO. "The repositioning of our wireless customer base to no-device-subsidy plans drove industry-leading postpaid churn."

Shares rose more than 2 percent in after-hours trading.

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The country's No. 2 wireless provider said it expects its acquisition of DirecTv to gain regulatory approval during the second quarter. It expects financial benefits from the deal to reach at least $2.5 billion on an annual run rate by year three after closing.

Last week, AT&T filed a lawsuit against the Federal Communications Commission appealing its new net neutrality rules.

The regulations prevent Internet firms from blocking or slowing Web traffic and from striking deals with content providers for smoother delivery to users.

AT&T, along with other major broadband firms, dislikes the new Web traffic rules, claiming they will deter business investment and innovation, according to a Reuters report.

In late-January, the telecom giant agreed to acquire NII Holdings' Nextel Mexico for about $1.88 billion, minus the outstanding net debt of the business at closing. The deal, expected to close in mid-2015, will net AT&T an additional 3 million subscribers.

DISCLOSURE: CNBC owner Comcast opposed the net neutrality plan adopted by the FCC.