AT&T: First quarter earnings shine; 1.6 million iPhones activated

AT&T: First quarter earnings shine; 1.6 million iPhones activated

Summary: AT&T on Wednesday delivered first quarter net income of $3.1 billion, or 53 cents a share, on revenue of $30.

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AT&T on Wednesday delivered first quarter net income of $3.1 billion, or 53 cents a share, on revenue of $30.6 billion. That tally handily topped Wall Street estimates. Meanwhile, AT&T said it activated 1.6 million iPhones in the quarter. 

Wall Street was expecting earnings of 48 cents a share on revenue of $31 billion. Revenue was a bit light, but close enough. In the first quarter a year ago, AT&T earned $3.1 billion, or 57 cents a share. 

In a statement, AT&T CEO Randall Stephenson said the company continues to play through a tough economy and invest in growth areas. Once again, AT&T is primarily a wireless story. 

 

  • AT&T added 875,000 net post-paid subscribers, up 9.2 percent from a year ago. Churn was 1.2 percent. Of those additions, all of the subscribers were using integrated devices. 
  • AT&T ended the quarter with 78.2 million total wireless subscribers. More than 40 percent of subscribers had a 3G device, up from 19.5 percent a year ago. 
  • Wireless data revenue was up 38.6 percent from a year ago and AT&T delivered more than 94 billion text messages, double from a year ago. 
  • The company said it activated 1.6 million iPhones in the first quarter with 40 percent of that tally new to AT&T. That's down from 1.9 million in the fourth quarter and 2.4 million in the third quarter. 

 

By the numbers:

  • AT&T said it added 284,000 U-verse TV subscribers to hit a total of 1.3 million TV subs. 

  • Total broadband subscribers---including 3G wireless cards and wireline customers (DSL and U-verse)---increased 471,000 in the first quarter to hit 16.7 million. 
  • AT&T's enterprise unit took a hit. Revenue was $10.7 billion in the first quarter, down from $11.2 billion a year ago.

Topics: iPhone, Banking, Enterprise Software, Hardware, Mobility, Networking, AT&T, Wi-Fi

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14 comments
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  • Yep! IPhone Is Dead, Not Going Anywhere, Total Failure

    Oh wait, that was my No_Ax and Loverock imitation.
    itanalyst2@...
    • LOOK EVERYONE!!@#@!!! HE MENTIONS ME!!@#@!

      This guy is so in love with me that he mentions me when I don't post, he mentions me when I do post. I think I have a stalker on my hands. Kinda flattering tho :)
      Loverock Davidson
      • Yep, Total Failure

        That's your name.
        itanalyst2@...
    • Well that is a pretty sharp decline

      From 2.4 in Q3 to 1.9 in Q4 to 1.6 now in Q1. And of that only 40% new customers. That's a pretty steep decline path they're on. If it doesn't change they're heading for 5M a year or so. Lucky for Apple they can count on the fanbois that bought 1's and 2's to keep on parting with their cash and buy 3's this summer and 4's next year but with the competition having better products now it's going to get harder for them to pick up a bigger share of non fanbois...
      Johnny Vegas
      • Funny I remember similar statements about he iPod.

        I guess history does repeat itself:)

        Pagan jim
        James Quinn
      • All that means ...

        is that the iPhone is reaching a market saturation plateau. Drop the cost of the plans or expand to different carriers and I venture the numbers would go up. It's all a game of statistics, anyway. The iPhone is ubuquitous.
        Lunatic59
      • You're overlooking several points...

        first, of course, is that the iPhone is sold in more than just the US.

        Also, these numbers should be looked at in context. Nokia's earnings,
        for example, have fallen by an astounding 90%. HTC's are down 30%. In
        case you hadn't noticed, we're in a recession.
        msalzberg
    • Who said it was a failure?

      [i]The company said it activated 1.6 million iPhones in the first quarter with 40 percent of that tally new to AT&T. [b]That?s down from 1.9 million in the fourth quarter and 2.4 million in the third quarter.[/b][/i]

      No one claimed it was a faiure, but they have said that the numbers appear to show that sales to be in a decline.

      Plus, only 40 percent were new customers. It does not say how many activations where new sales to existing iPhone customers (upgrades)

      Not that it matters, sales are sales, no matter how they come about.
      GuidingLight
  • RE: AT&T: First quarter earnings shine; 1.6 million iPhones activated

    Johnny Vegas: "but with the competition having better
    products now it's going to get harder for them to pick up a
    bigger share of non fanbois..."

    def: "non fanbois" Unemployed virgin male PC gamers in
    their twenties or thirties still living in parents basement.
    zato_3@...
  • iPhone screen WAY too small, I'm getting an Acer

    http://www.wmexperts.com/acer-kills-eten-brand-brings-new-phones-singapore

    I laugh at your pitiful 3.5" screen. :)
    NonZealot
    • Now that's funny...:)

      Pagan jim
      James Quinn
    • Very funny!

      I'm buying pants with bigger pockets.
      msalzberg
      • Can't wait too try out the "vibrate"

        Pagan jim
        James Quinn
        • It'd probably...

          shake my fillings out.
          msalzberg