AT&T third quarter on target: 5.2 million iPhone activations

AT&T's third quarter earnings were on target with estimates as the company activated a record 5.2 million iPhones amid a total of 8 million smartphones.

AT&T's third quarter earnings were on target with estimates as the company activated a record 5.2 million iPhones amid a total of 8 million smartphones.

The company reported third quarter earnings of $12.3 billion, or $2.08 a share, on revenue of $31.6 billion, up 2.8 percent from a year ago (statement). Those earnings were inflated by one-time gains that included a tax settlement and the sale of Sterling Commerce to IBM. Strip out those gains and earnings were 55 cents a share, in line with Wall Street estimates. AT&T's revenue was better than the $31.2 billion expected.

Among the key moving parts in the third quarter:

  • AT&T added 2.6 million wireless subscribers and now has a total of 92.8 million. These gains were fueled by connected devices---e-readers, security systems and GPS devices---instead of people. AT&T added 745,000 postpaid customers and 321,000 prepaid.
  • Postpaid churn was 1.14 percent. Total churn was 1.32 percent.
  • 80 percent of postpaid sales were smartphones.
  • Wireless data revenue was $4.8 billion, up 30.5 percent from the third quarter a year ago.

  • Wireless service revenue was $13.7 billion, up 10.5 percent from a year ago.
  • The company added 236,000 U-Verse TV subscribers and most of those companies also got the U-Verse Internet service. U-Verse revenue in the third quarter was $1.1 billion.
  • Business service revenue continued to stabilize, but were down 3.9 percent from a year ago to $9.5 billion.
  • The company also reiterated its 4G migration plan.

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All