AT&T Quarterly Profits Jump on One Off Gains
Published on: 21st Oct 2010
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USA based AT&T has reported its third quarter results announcing that consolidated revenues from continuing operations rose by 2.8% to $31.6 billion. This was broken down by an 11.4 percent growth in wireless revenues, with a 10.5 percent increase in wireless service revenues.
Compared with results for the third quarter of 2009, operating expenses were $26.1 billion versus $25.4 billion; operating income was $5.5 billion, up from $5.4 billion; and AT&T's operating income margin was stable at 17.3 percent, compared to 17.5 percent.
Net income was $12.3 billion including the one-time gains from a previously disclosed tax settlement and the sale of Sterling Commerce. These results compare with reported net income of USD3.2 billion in the third quarter of 2009. Excluding one-time gains, earnings grew 3.8 percent.
"This was a terrific mobile broadband quarter," said Randall Stephenson, AT&T chairman and chief executive officer. "A record number of customers signed new two-year contracts and integrated device sales outpaced our previous best by a wide margin. Wireless revenues continue to grow, churn is reaching record low levels, and postpaid ARPU increased for the seventh straight quarter.
AT&T posted a net gain in total wireless subscribers of 2.6 million, to reach 92.8 million in service. Retail net adds for the quarter include postpaid net adds of 745,000 and prepaid net adds of 321,000. Connected device net adds were 1.2 million, and reseller net adds were 406,000.
AT&T's third-quarter integrated device growth included 5.2 million iPhone activations, the most iPhone activations ever in a quarter. This is 62 percent more than the previous quarterly record of 3.2 million activated in the second quarter of 2010. Approximately 24 percent of those activations were for customers who were new to AT&T.
Wireless data revenues - from messaging, Internet access, access to applications and related services - increased $1.1 billion, or 30.5 percent, from the year-earlier quarter to $4.8 billion. AT&T wireless subscribers on data plans increased by 21.5 percent over the past year.