AT&T Posts Strong Second-Quarter Results

Tuesday, July 24th, 2007
|
AT&T logo

AT&T Posts Strong Second-Quarter Results Led by Accelerated Wireless Growth, Solid Regional Results and a Significant Improvement in Enterprise Trends

  • $0.47 reported earnings per diluted share, versus $0.46 in the year-earlier quarter
  • $0.70 adjusted earnings per diluted share, up from $0.58 in the second quarter of 2006
  • 1.5 million net gain in wireless subscribers to reach 63.7 million,with further improvement in wireless churn to 1.6 percent overall and 1.2 percent for postpaid subscribers
  • 14.9 percent growth in wireless service revenues with wireless data revenues up 66.9 percent and service ARPU (average revenues per user) up 3.6 percent
  • Substantial improvement in enterprise customer revenue trends driven by accelerated growth in IP-based data services
  • 200,000 net increase in satellite and AT&T U-verseSM video subscribers; U-verse video ramp to 51,000 subscribers at the end of June, up from 13,000 at the end of the first quarter

AT&T Inc. (NYSE: T) today posted its ninth consecutive quarter of double-digit growth in adjusted earnings per share as it ramped revenue growth and delivered continued strong execution in merger integration. Results were led by accelerated growth in wireless and IP (Internet Protocol)-based services along with substantial improvement in enterprise revenue trends.

Costs for AT&T’s U-verse initiative, which delivers advanced television and high speed Internet services, continue to be in line with the company’s previous outlook.

Wireline

AT&T’s second-quarter wireline results included significant improvement in enterprise revenue trends, continued solid regional results and an accelerated ramp in U-verse video subscriber growth. Second-quarter wireline highlights are based on pro forma revenue and volume comparisons that combine results from AT&T and BellSouth in all periods and include ongoing shifts in customer categories to reflect AT&T’s management of customer relationships.

  • AT&T posted strong video growth in the second quarter. U-verse services are now available in parts of 23 metro areas, and sales and installations have ramped significantly. At the end of the second quarter, AT&T had 51,000 U-verse video subscribers, up from 13,000 three months earlier. Total video connections, which include AT&T U-verse service and bundled satellite television service, increased by 200,000 in the second quarter to 1.9 million. At the end of the second quarter, 5.9 percent of AT&T’s primary consumer lines also had a video solution from AT&T, up from 3.8 percent a year earlier.
  • AT&T’s high speed Internet connections, which include DSL, AT&T U-verse high speed Internet and satellite broadband services, increased by 400,000 in the quarter, reflecting typical seasonality due to end-of-school-year disconnects. At the end of the quarter, AT&T had 13.3 million consumer and business high speed Internet connections, up 2.2 million, or 20.0 percent, versus pro forma totals a year earlier. Across AT&T’s regional operations, 35.0 percent of its consumer primary lines now have the company’s broadband service, up from 27.8 percent one year earlier.