Earnings: AT&T Reports Rise In Revenue; Boosted By iPhone, Wireless Growth

This story was written by Dianne See Morrison.
AT&T (NYSE: T), the US's largest telecoms company reported today Q3 net income of $3.2 billion, or 55 cents a share, on revenue of $31.3 billion. This compares to last year's Q3 profit of $3.06 billion, or 50 cents a share. It reported adjusted earnings of 67 cents a share, falling short of the 71 cents a share estimate from a *Thomson Reuters* poll of analysts. But the adjusted EPS includes 10 cents for *Apple* iPhone subsidies--or what AT&T called "pressure generated by strong performance from the Apple (NSDQ: AAPL) iPhone 3G initiative".

AT&T CEO Randall Stephenson had nothing but praise for the iPhone, saying in a statement he was "particularly pleased" with the customer response. The iPhone helped drive customer acquisitions, as well as boost revenues at the wireless unit, which saw a 15.4 percent growth in revenues. AT&T's total wireless revenues came in at $12.6 billion, and wireless service revenues, which exclude handset and accessory sales, grew 14.3 percent to $11.3 billion. Retail postpaid subscriber ARPU was $58.99, up 2.6 percent versus the year-earlier third quarter. Iphone 3G activations totaled 2.4 million in the quarter, with approximately 40 percent of them new customers for the operators. The iPhone was also delivering a better class of subscribers--"high value" ones with "significantly higher ARPU and lower churn than postpaid subscriber average." iPhone ARPU was 1.6 times higher, coming it at $95 compared to $58.99 for non iPhone users. AT&T expects its dilution associated with the iPhone 3G to "run above its previous expectation....more on MocoNews.

By Dianne See Morrison


Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.

The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App