AT&T announces 26% rise in earnings
By Peter Svensson |
July 23, 2010, Friday
|
Print Edition
Print Edition
AT&T Inc's earnings rose 26 percent in the latest quarter, the firm said yesterday, and raised its forecast for the year, helped by its iPhone-fueled wireless arm.
The country's largest telecommunications provider said it now expects a "strong" increase in earnings this year, compared to its previous forecast of "stable-to-improved" results.
Its shares rose 38 cents to US$25.30 in premarket trading.
AT&T said its net income rose to US$4.02 billion, or 68 cents per share, in the April-June period, up from US$3.2 billion, or 54 cents a share, a year ago.
Revenue was US$30.8 billion, compared with US$30.7 billion a year ago.
The Dallas company signed up a net 496,000 new wireless contract customers, down slightly from the 512,000 it signed in the first quarter. That's about half of what it has signed up in recent years, but it will still likely prove a strong result compared to the rest of the industry, where contract signups have collapsed this year.
AT&T has been helped by the iPhone, for which it is the exclusive US carrier. AT&T said it once again activated a record number of iPhones: 3.2 million. That was boosted by the launch of the iPhone 4 in the last few days of the quarter.
Contract-signing customers are the most lucrative, but AT&T also added 300,000 no-contract, prepaying customers, more than it has in any quarter since 2007.
AT&T and other carriers are banking on keeping growth going by providing wireless services to non-phone devices, like the iPad tablet and Kindle e-reader.
The country's largest telecommunications provider said it now expects a "strong" increase in earnings this year, compared to its previous forecast of "stable-to-improved" results.
Its shares rose 38 cents to US$25.30 in premarket trading.
AT&T said its net income rose to US$4.02 billion, or 68 cents per share, in the April-June period, up from US$3.2 billion, or 54 cents a share, a year ago.
Revenue was US$30.8 billion, compared with US$30.7 billion a year ago.
The Dallas company signed up a net 496,000 new wireless contract customers, down slightly from the 512,000 it signed in the first quarter. That's about half of what it has signed up in recent years, but it will still likely prove a strong result compared to the rest of the industry, where contract signups have collapsed this year.
AT&T has been helped by the iPhone, for which it is the exclusive US carrier. AT&T said it once again activated a record number of iPhones: 3.2 million. That was boosted by the launch of the iPhone 4 in the last few days of the quarter.
Contract-signing customers are the most lucrative, but AT&T also added 300,000 no-contract, prepaying customers, more than it has in any quarter since 2007.
AT&T and other carriers are banking on keeping growth going by providing wireless services to non-phone devices, like the iPad tablet and Kindle e-reader.
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