AT&T Posts Decline in Quarterly Revenues Following Disposals
Published on: 24th Apr 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
USA based AT T has reported that its first quarter revenues fell by 1.5 percent to USD31.4 billion largely due to the disposal of its advertising division. Excluding that disposal revenues would have risen by 0.9 percent.
Net profits rose to USD3.7 billion, compared to USD3.6 billion a year ago.
Wireless service revenues increased 3.4 percent in the first quarter, to $15.1 billion. Wireless data revenues increased 21 percent from the year-earlier quarter to $5.1 billion.
First-quarter 2013 cash from operating activities totaled $8.2 billion, and capital expenditures totaled $4.3 billion. Free cash flow -- cash from operating activities minus capital expenditures -- totaled $3.9 billion.
The company continues to expect capital expenditures for 2013 to be in the $21 billion range and now expects capital expenditures for 2014 and 2015 each to be in the $20 billion range.
"Our wireless network performance continues to be terrific," said Randall Stephenson, AT&T chairman and CEO. "And that helped drive our best ever first quarter for smartphone sales, improved wireless churn and strong growth in mobile data revenues."
AT&T added 1.2 million postpaid smartphone subscribers in the first quarter. At the end of the quarter, 72 percent, or 48.3 million, of AT&T's postpaid phone subscribers had smartphones, up from 61 percent, or 41.2 million, a year earlier.
About 60 percent of AT&T's postpaid smartphone customers now use a 4G-capable device, with more than half of those using LTE devices.
Postpaid churn was 1.04 percent, down from 1.10 percent in the first quarter a year ago, and from 1.19 percent in the fourth quarter of 2012.