AT&T wireless gain buffers fixed line decline

23 Oct 2009

US telecoms group AT&T has reported net income of USD3.19 billion for the three months ended 30 September 2009, a 1.2% decline from USD3.23 billion in the same period a year earlier. Operating revenues for the period slipped by 1.6% year-on-year, down to USD30.85 billion from USD31.34 billion. The firm’s wireline unit faced continued decline, with voice revenue falling from USD9.52 billion in 3Q08 to USD8.13 billion a year later, while its wireless division reported rising revenues, up from USD11.27 billion a year ago to USD12.39 billion, as the success of the exclusive iPhone handset drove growth. Wireless data revenues surged by 33.6% year-on-year to USD3.6 billion. Randall Stephenson, AT&T’s chief executive, said: ‘We delivered a terrific wireless quarter, IP data growth was strong and execution across the business continues to be solid.’ Stephenson added that the company would continue to push its fibre-based ‘U-Verse’ network in an effort to revitalise its wireline business. Operating expenses fell marginally, down from USD25.72 billion in the third quarter of 2008 to USD25.48 billion a year later.

AT&T added over 6.72 million net new mobile customers in the twelve months ended 30 September 2009, ending the period with 81.6 million in total, selling 4.3 million 3G devices in the third quarter of 2009, 3.2 million of which were iPhones. Conversely, the company’s traditional fixed line telephony customer base fell from 28.33 million at the end of September 2008 to 25.2 million a year later, while the broadband subscriber base grew from 14.84 million to 15.64 million. AT&T ended September 2009 with 1.8 million U-Verse video connections, up from 781,000 a year earlier.

United States, AT&T, AT&T Wireless (Defunct)