AT&T posts fifth consecutive quarterly revenue increase; revenues up 2.3% year-on-year

21 Apr 2011

US telco AT&T has reported consolidated revenues of USD31.25 billion for the three months ended 31 March 2011, a rise of 2.3% compared to the same period a year earlier, marking the company’s fifth consecutive quarter with a year-on-year revenue increase. Wireless revenues accounted for the lion’s share of revenues in 1Q11, rising 8.6% to USD14 billion; wireless data revenues, including SMS, rose 23.9% year-on-year to USD5.1 billion. By contrast, fixed line voice revenues slumped 12.5% to USD6.6 billion. Net income for the quarter increased 36.5% to USD3.47 billion.

In operational terms, AT&T Wireless added a net 1.98 million new customers, quarter-on-quarter, for a total of 97.52 million at the end of March. Of the new additions 62,000 were post-paid subscribers (compared to 512,000 million in the same period one year earlier), and 85,000 were pre-paid. Of the remaining additions, 561,000 were attributed to resellers, and a further 1.28 million subscriber accounts were classified as ‘connected devices’. Post-paid average revenue per user (ARPU) increased 2.4% to USD63.4 per month, representing the ninth consecutive quarter displaying a year-on-year increase. On the fixed line side, residential voice connections dropped 10.4% to 42.46 million, whilst AT&T’s U-verse high speed broadband service saw fixed line broadband connections increase 2.7% to finish the quarter with 16.49 million broadband subscribers.

AT&T CEO Randall Stephenson commented: ‘We delivered another robust mobile broadband growth quarter for a very solid start to the year. We posted double-digit wireless revenue growth, and we set new first-quarter records in total net adds, connected device net adds and smartphone sales. Mobile broadband networks are driving unprecedented growth and innovation, and AT&T is playing a leading role in bringing these benefits to customers. That is why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies’ spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers’ network experience as volumes continue to grow’.

United States, AT&T