AT&T reports 1Q results

22 Apr 2010

AT&T has reported first quarter revenues of USD30.6 billion, up 0.3% on the same period of 2009. Operating profit in the three months ended 31 March 2010 rose from USD5.7 billion to USD6.0 billion, while net profit fell to USD2.5 billion from USD3.1 billion as a result of a one-time charge of USD995 million to account for changes in employee health insurance. CAPEX for the quarter was USD 3.3 billion.

AT&T Wireless added 1.9 million new customers to its base, to raise its total to 87 million at the end of March. Wireless service revenues increased 10.3% to USD12.8 billion, driven by a 29.8% rise in data service revenues to USD947 million. Operating profit from the mobile activities rose 20.4% to USD4.2 billion, while the OIBDA service margin improved to 44.5% from 42.5% a year ago. Meanwhile, its fixed line operations reported a 12.1% year-on-year decline to USD15.4 billion and operating profit fell 16.9% to USD1.7 billion. The number of retail consumer voice lines dipped 11.1% to 26.633 million. On a more positive note, the company reported 255,000 net new wireline broadband customers and 231,000 U-Verse TV subscribers. U-Verse is now available to over 24 million homes, with a services penetration rate of 13%.

United States, AT&T