Feature Article

October 24, 2012

AT&T Sees Flat Q3 2012 Revenue, Changing Revenue Mix

AT&T third quarter 2012 revenue of $31.5 billion was flat compared to the third quarter of 2011, with continued significant changes in the revenue contributors. AT&T considers mobile services, fixed network data and business services, particularly managed information technology services, its growth drivers, for good reason.

Mobility, fixed network data and business managed services represented 81 percent of total AT&T revenue and grew 6.4 percent versus the same quarter a year ago.

Mobile services represented 53 percent of total revenue, up two percent, year over year. Fixed network data services, including both consumer and business managed services, represented 28 percent, up one percent, year over year.

Fixed network voice (and all other miscellaneous revenue) generated 19 percent of total AT&T revenue, down from 22 percent, year over year.

Those trends are quite a contrast from developments in Western Europe, where revenue is stalled or falling.

Mobile data grew 18.3 percent, year over year, producing revenue that grew more than $1 billion versus the third quarter of 2011. U-verse revenue grew 38.3 percent, while strategic business services revenue grew 11.4 percent.

Wireless revenue (device revenue included) was up 6.6 percent with wireless service revenue up 4.5 percent, AT&T says.

AT&T had its strongest postpaid wireless subscriber average monthly revenue per subscriber growth in six quarters, up 2.4 percent to $65.20.

AT&T sold 6.1 million smartphones, with postpaid smartphone customers reaching 44.5 million, up 1.4 million from the second quarter of 2012.

AT&T also gained 678,000 net wireless subscribers.

Wireline consumer revenue growth accelerated, up 2.0 percent versus the year-earlier period, strongest growth in more than four years, AT&T says.

AT&T had 7.4 million total AT&T U-verse subscribers (TV and high speed Internet) in service, and gained almost 200,000 net gain in U-verse TV subscribers and 613,000 net high speed access subscribers.

Edited by Brooke Neuman

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