US wireless carrier AT&T Inc raised its annual profit view and posted a better-than-expected adjusted profit in its third-quarter on Thursday on strong demand for its phone and internet services, and as more Americans upgraded to 5G plans.

After unwinding its efforts to become a media and entertainment company, AT&T is back to focusing on wireless services in a highly competitive telecoms market where customers are cutting back on spending due to decades-high inflation.

AT&T’s promotional offers on smartphones and wireless plans helped it add 708,000 net new monthly bill paying wireless phone subscribers, surpassing Factset estimates of 552,300 additions and sending its shares up 2.8% before the bell.

The carrier also added 338,000 fiber internet customers in the quarter and said it was on track to achieve its annual free cash flow target of $14 billon.

AT&T has not raised prices since a July warning that some customers were taking more time to clear their bills, which had forced it cut its forecast for annual free cash flow.

The company now expects adjusted profit per share for the full year to be $2.50 or higher compared with earlier expectations of $2.42 to $2.46 per share.

Total revenue rose 3% to $30 billion, exceeding expectations of $29.86 billion, according to Refinitiv data.

Income from continuing operations was $6.3 billion compared with $5 billion a year earlier. Adjusted earnings per share came in at 68 cents per share, topping estimates of 61 cents.