AT&T Inc. today reported solid second-quarter results highlighted by strong wireless growth, double-digit gains in revenues from IP-based data services and further expansion of consolidated margins.
For the quarter ended June 30, 2008, AT&T’s consolidated revenues totaled $30.9 billion, up 4.7 percent versus reported results in the year-earlier quarter and up 3.6 percent compared with second-quarter 2007 pro forma revenues, which exclude merger-related accounting impacts on directory revenues.
Compared with results for the year-earlier quarter, AT&T’s reported operating expenses for the second quarter of 2008 were $24.3 billion, down from $24.5 billion; reported operating income was $6.6 billion, up from $4.9 billion; and AT&T’s reported operating income margin was 21.3 percent, up from 16.8 percent.
AT&T’s reported second-quarter 2008 net income totaled $3.8 billion, up from $2.9 billion in the year-earlier quarter, and reported earnings per diluted share totaled $0.63, up from $0.47 in the second quarter of 2007.
“Our results demonstrate the great strength of AT&T’s assets and our ability to execute with focus and discipline,” said Randall Stephenson, AT&T chairman and chief executive officer, in the press release. “Earnings growth continues to be solid, our wireless momentum is strong, our major growth and cost-reduction initiatives are on track, and we continue to return substantial value to shareowners.”
“As we generate sound financial results, AT&T also has taken the lead to innovate and create great solutions for customers,” Stephenson said. “Mobility, broadband connectivity and integrated services that encompass voice, data and video are driving a new world of communications. AT&T is all about deploying and enhancing premier networks and products to deliver this world to both business and consumers.”
“The Apple iPhone 3G is a dramatic example of this transformation,” Stephenson added. “In the days following our exclusive U.S. launch of this new device, powered by the nation’s fastest 3G wireless network, customer response has been everything we had anticipated and more. This strengthens our wireless business, and it reinforces our positive view of the opportunities ahead for AT&T and the industry.”
Total wireless revenues increased 15.8 percent to $12.0 billion in the second quarter, and wireless service revenues, which exclude handset and accessory sales, grew 14.8 percent to $11.0 billion. Wireless revenue growth was driven by solid subscriber gains and a greater number of customers choosing more advanced smartphones and integrated devices, spurring increased usage of data services. Retail postpaid subscriber ARPU (average monthly revenues per subscriber) was up 3.5 percent versus the year-earlier second quarter.
Wireless data revenues grew 52.0 percent versus the year-earlier quarter to $2.5 billion, reflecting continued strong adoption of services such as Internet and data access, e-mail and messaging. Wireless Internet access revenues more than doubled versus results for the year-earlier second quarter, while revenues from e-mail, messaging and data access all delivered greater than 50 percent growth. Text messaging volumes tripled versus totals for the year-earlier quarter, and multimedia message volumes increased more than 170 percent. At the end of the second quarter, approximately 18 percent of AT&T’s postpaid wireless subscribers had an integrated device, up from 8 percent one year earlier. On average, these subscribers have ARPUs roughly double the company average. AT&T expects continued strong growth in wireless data services as more customers choose data plans and advanced wireless devices such as the new iPhone 3G, which was launched as an AT&T U.S. exclusive on July 11. In the first 12 days following launch, sales of the iPhone 3G were nearly double levels achieved in AT&T’s 2007 iPhone launch.
AT&T’s second-quarter net gain in total wireless subscribers exceeded 1.3 million, down 123,000 versus results in the second quarter of 2007 and up 38,000 compared with the first quarter of this year. Retail postpaid net adds totaled 894,000, down 2.0 percent versus the year-earlier second quarter and up 26.8 percent from results in the first quarter of this year. This sequential postpaid improvement was achieved despite reduced iPhone sales ahead of the early July iPhone 3G launch. Retail postpaid churn moved down to 1.1 percent in the second quarter, the lowest level in the company’s history.
Source: AT&T
So much for the claims that the 3G sales have been less than that of the original. Facts people, only the facts, and the 3G is a bigger success than the original by far.
AT&T;would funnel some of that revenue back into improving their overall coverage area (to the level of Verizon’s, preferably) I’d enjoy my iPhone experience that much more. Fewer dead spots, please!
AT&T will have to improve and increase their coverage if they want to stay ahead of Verizon. Hopefully this is a priority for them.
Dead spots? Never experienced that with my iPhone. Either I’m extremely fortunate or AT&T;has great coverage just for me. However, the two previous cellular providers I subscribed to had a lot of dropped calls and poor reception.
Thank you AT&T;and Apple:)
Maybe if Verizon offered SIM cards with their phones and offered better customer service they would actually be ahead of the game
Yes but did there stock fall of a cliff after the report like Apple’s?
Why is is only the retards that own stock in my favorite company, that don’t get it, Good new is GOOD, stock should go UP.
I feel the coverage area shown by AT&T;is very optimistic at best. It shows areas of coverage where I can’t get phone bars on my AT&T;service.
@ Now if only
Someone keeps posting on this site that CDMA is superior to GSM. I suspect that the transceiver algorithim for CDMA may be more robust. This is why Verizon can claim a more relaible network.They can’t claim the cheapest rates or best customer service however. Ninety nine percent of the rest of the uses GSM and that technology allows ATT greater flexibility in deploying wireless data services. I suspect that ATT will continue to improve technically. As for their people skills, I have no comment.