AT&T reports Q3 revenues of USD31.6 billion

22 Oct 2010

AT&T has reported consolidated revenues of USD31.6 billion for the three months ended 30 September 2010, a rise of 2.8% compared to the same period a year earlier, and is the company’s third consecutive quarter with a year-on-year revenue increase. Net profit for the quarter almost quadrupled to USD12.4 billion, from USD3.3 billion in the third quarter of 2009, as a result of one-off gains from a previously disclosed tax settlement and the sale of business-to-business solutions company Sterling Commerce.

In operational terms AT&T Wireless added a net 2.6 million new customers, quarter-on-quarter, for a total of 92.76 million at the end of September. Of the new additions 745,000 were post-paid subscribers, 321,000 pre-paid subscribers and 406,000 re-seller net additions. Data revenues, including SMS, rose 30.5% year-on-year to USD4.8 billion, while total mobile revenues rose 11.4% to USD15.2 billion. In terms of fixed line activities, AT&T reported its first growth in residential revenues in two years, up 0.2% to USD5.3 billion, while business revenues dropped 3.9% to USD9.5 billion. Fixed line operating income totalled USD1.8 billion, unchanged from a year earlier. Driven by its U-verse high speed broadband service, AT&T posted a net gain of 148,000 fixed line broadband connections for the quarter, to finish September with 16.1 million subscribers.

AT&T CEO Randall Stephenson commented: ‘This was a terrific mobile broadband quarter. A record number of customers signed new two-year contracts and integrated device sales outpaced our previous best by a wide margin. Wireless revenues continue to grow, churn is reaching record low levels, and post-paid ARPU increased for the seventh straight quarter. These trends add to our momentum and confidence. Mobile broadband is the industry’s most powerful growth driver, and demand is in its early stages in both the consumer and business segments. AT&T is well positioned for the opportunities ahead’.

United States, AT&T