Katie MarsalAT&T announced its quarterly earnings Thursday morning, and revealed that it had earned $30.8 billion in revenue in its second fiscal quarter, amounting to $0.61 earnings per share. Helping the company to those numbers was Apple's iPhone, of which the carrier activated a record 3.2 million in the three-month period.
AT&T said that 27 percent of those 3.2 million iPhone activations were from new customers, which means the device brought 860,000 new subscribers to the carrier. Last quarter was bolstered by the launch of the iPhone 4, of which Apple sold 1.7 million in the first three days internationally.
The ratio of new customers is lower than the previous quarter, when AT&T activated 2.7 million iPhones, of which more than a third were new subscribers.
AT&T again noted that iPhone 4 preorder rates were 10 times higher than the first day of preordering for the iPhone 3GS in 2009.
AT&T's earnings per share were up 25.9 percent from the same period in 2009, and revenue increased $194 million, or 0.6 percent. The earnings per share beat Wall Street expectations, while revenue was lower than anticipated.
The iPhone helped AT&T reach 1.6 million net adds in total wireless subscribers, which was the company's best-ever second quarter. AT&T now has 90.1 million customers in service.
Wireless revenues increased 10.3 percent, and postpaid average monthly revenues per subscriber were up 3.4 percent. Wireless data revenues grew even greater, up $936 million over 2009, for 27.2 percent year-over-year growth.
"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver — mobile broadband. I am excited by the opportunities ahead."
Wesley Hilliard
William Gallagher
Andrew O'Hara
Marko Zivkovic
Christine McKee
23 Comments
Verizon’s earnings come out tomorrow. Who will win this quarterly round of net adds and churn? Will AT&T best Verizon is total subs before the Apple contract ends?
We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband. I am excited by the opportunities ahead."
Heres a CEO that doesn't even realize that APPLE is the reason for ATTs revenue trends, double-digit earnings growth and solid cash flow. Its going to be interesting to see what happens when they lose their exclusivity with APPLE.
there sure are a lot of people who wanted the latest and greatest from apple
And then there's Nokia which seems to be struggling with profitability - down 40% last quarter! See it here at BBC:
http://www.bbc.co.uk/news/business-10725887
The article attributes Google and Apple's entrance into the smartphone category (presumably where the profits are) to the decline, but also notes that the margins on their handsets decreased. If they are stuck with mostly feature phones feeding their profitability then this makes sense.
Amazing really that Apple was able to start this juggernaut with only ATT on board - and it looks like ATT has been greatly rewarded (financially at least) with taking the risk on an untried and novice handset maker.
We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband. I am excited by the opportunities ahead."
Heres a CEO that doesn't even realize that APPLE is the reason for ATTs revenue trends, double-digit earnings growth and solid cash flow. Its going to be interesting to see what happens when they lose their exclusivity with APPLE.
This is called "putting your best foot forward" (sarcasm). I bet that when Apple and AT&T have their next quarterly joint review regarding AT&T service, Apple is going to have some extra leverage to make demands.
Disclaimer: I do not have an iPhone.