AT&T Posts Decline in Quarterly Revenues Following Disposals
USA based AT&T has reported that its first-quarter revenues fell by 1.5 percent to US$31.4 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 US$3.7 billion, compared to US$3.6 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.