AT&T added 73,000 net postpaid wireless customers in the second quarter as the telecom giant reported mixed results following its acquisition of Time Warner.

The number of postpaid connections was below the 125,000 forecasted by Wells Fargo analysts, but the total included 46,000 net added postpaid phones. Wells Fargo had instead projected a loss of 25,000 phones.

The carrier reported 143,000 net postpaid smartphones added during the quarter and said decreases in tablet numbers offset gains in connected watches.

Overall postpaid churn came in at 1.02 percent, while postpaid phone churn was 0.82 percent.

The company also touted 453,000 branded prepaid connections, which brought its total number of quarterly additions to 526,000.

“Our upgrade rate was down year-over-year, but our equipment revenues were up, reflecting customers’ purchasing habits and their choice of more expensive devices,” AT&T CFO John Stephens said, according to a transcript of the company’s earnings call. “But even with these strong sales, margins were very good, with service margins coming in over 50 percent on a comparable basis.”

AT&T’s wireless segment reported total operating revenues of $17.3 billion, including $13.7 billion in service revenue and $3.6 billion in equipment revenue. Adjusted earnings of $7.6 billion and adjusted earnings service margins of 55.7 percent also eclipsed Wells Fargo projections.

Wells Fargo analysts wrote in a note that AT&T, as well as Verizon, “has made an important and encouraging turn — with growth in service revenue expected this year.”

The second-quarter consolidated results reflected 16 days of contributions from Time Warner’s operations following a difficult merger fight. AT&T reported overall revenues of $39 billion — below analysts’ expectations of $39.4 billion — but adjusted earnings per share of $0.91 beat the forecast of $0.85 per share.