AT&T reports second quarter growth

25 Jul 2007

The largest telco in the US by customers, AT&T Inc, has reported its ninth consecutive quarter of double-digit growth in adjusted earnings per share as results are boosted by strong wireless growth and a decent performance from its enterprise division. In the second quarter of 2007 AT&T Inc reported revenues of USD29.5 billion, up from USD15.8 billion in the previous quarter, which came prior to AT&T’s acquisition of BellSouth and the accompanying consolidation of results from their cellular joint venture, AT&T Mobility (formerly Cingular Wireless). On a pro forma basis revenues were up 2% year-on-year. Net income for the quarter totalled USD2.9 billion, up from 1.8 billion a year ago.

Wireless service revenues grew 14.9% versus the year-earlier quarter to USD9.5 billion. Boosted by strong data growth, AT&T’s wireless ARPU posted its best year-over-year growth in several years. Total service ARPU in the second quarter was USD50.63, up 3.6%. Post-paid ARPU growth was even stronger at approximately 6%. AT&T posted a second-quarter net gain in wireless subscribers of 1.5 million to reach 63.7 million in service, up 6.4 million over the past year. The firm said that it activated 146,000 Apple iPhone accounts in just two days at the end of period following the launch of the new handset on 29 June; around 40% of iPhone customers were new to AT&T.

In the wireline segment results were driven by the Enterprise division and the U-verse fibre-to-the-home network, which is now available in 23 markets. There were 51,000 U-verse video subscribers at end-June. The firm had more than 13.2 million DSL connections in service, including over two million wholesale lines.

Randall Stephenson, AT&T Inc’s chairman and chief executive officer, Randall Stephenson, commented: ‘Wireless revenue growth accelerated for the fourth consecutive quarter. Our U-verse video service has begun to ramp aggressively. And we took a major step up toward revenue growth in enterprise services, where AT&T has tremendous assets and great potential.’

United States, AT&T, AT&T Communications