AT&T sees profits fall in Q2

24 Jul 2009

US-based cellular operator AT&T has announced a 15.2% year-on-year drop in net income for the three months ended 30 June 2009, down to USD3.2 billion from USD3.77 billion in Q2 2008. Operating expenses for the quarter were up 3.8% to USD25.23 billion, whilst operating revenues fell marginally; down 0.4% year-on-year to USD30.7 billion. The company attributed these results to falling wireline revenues and the costs associated with the launch of the iPhone 3GS handset, which is available exclusively to AT&T customers in the US. AT&T revealed that the 19 June launch date of the iPhone 3GS was its best sales day to date and since the launch the company has sold 2.4 million of the handsets, over of third of which were sold to new customers. The company added 1.37 million net new mobile customers in the second quarter of 2009, giving it a total of 79.6 million wireless customers as of 30 June, up 9.2% from 72.9 million a year earlier. The telco’s broadband customer base grew by 8.4% to 16.9 million over the course of the year. AT&T’s wireline operations, however, continued to struggle, ending the first half of 2009 with 46.3 million revenue generating connections, down 4.4% from 48.4 million a year earlier.

United States, AT&T, AT&T Communications