Feature Article

July 24, 2012

AT&T Announces Second Quarter Earnings for 2012: 'Solid Performance, Strong Momentum Going Forward'

Telecommunications services provider, AT&T reported better-than-expected second quarter earnings this morning, despite revenue slightly below forecasts, earning a net income of $.39 billion, or $0.66 per share, during the period. Sales during the three months ending in June advanced 0.3 percent from the year-ago period to $31.58 billion, below consensus estimates for a $31.65 billion quarter.

AT&T's wireless division continued to generate a significant portion of the company's growth, with sales up 4.8 percent to $16.4 billion. It sold 5.1 million smartphones in Q2, representing 77 percent of postpaid device sales. At the end of the quarter, 61.9 percent, or 43.1 million, of AT&T’s postpaid subscribers had smartphones, up from 49.9 percent, or 34.1 million, a year earlier.

AT&T posted a net increase in total wireless subscribers of 1.3 million in the second quarter to reach 105.2 million in service. This included gains in every customer category. Subscriber additions for the quarter included postpaid net adds of 320,000. Prepaid net adds were 92,000, connected device net adds were 382,000 and reseller net adds were 472,000. Second-quarter net adds reflect continued adoption of smartphones and sales of tablets.

“Our mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better," AT&T chief executive, Randall Stephenson said. "And most impressive, with this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network."

Smartphone and data-only device sales help drive almost 19 percent growth in wireless data revenue. The company experienced its highest wireless margins ever with 45 percent, up from 41.1 percent a year ago.

AT&T’s growth engines – wireless, wireline data and managed services – represented 80 percent of total revenue when excluding Advertising Solutions, and grew 5.5 percent versus the same quarter a year ago, led by 18.8 percent growth in wireless data revenue, 13.5 percent growth in strategic business services revenue and 38.3 percent growth in U-verse revenue.

Its wireless consumer revenue went up 1.7 percent versus the year-earlier period, which is its strongest growth in more than four years. The number of U-verse TV subscribers grew 22 percent year-over-year, with 6.8 million total AT&T U-verse subscribers in service.

To read more from the full report, click here.



AT&T is a sponsor of ITEXPO West 2012. To be held Oct. 2-5 at the Austin Convention Center in Austin, TX, ITEXPO is the world’s premier IP communications event. For more information on IEXPO West 2012 click here.




Edited by Brooke Neuman


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