AT&T adds 2.1 million connections in solid Q2

AT&T's second quarter results were solid as it preps to integrate DirecTV amid a continuing battle for customers.

AT&T said it added 1 million connected cars and about 1.2 million smartphones to its subscriber base in the second quarter.

The additions highlight progress, but competition from the likes of T-Mobile as well. Verizon added 1.1 million new wireless subscribers and that total was fueled by tablets.

Consider:

  • Verizon added 321,000 net phones in the quarter.
  • AT&T added 741,000 net phones (postpaid and prepaid).
  • T-Mobile added 760,000 net postpaid phones and 178,000 prepaid.

As for the financials, AT&T delivered better than expected earnings with revenue that was a smidge light. The company reported second quarter earnings of $3 billion, or 58 cents a share, on revenue of $33 billion, up 1.4 percent from a year ago. Excluding merger charges related to the purchase of Nextel Mexico and integration expenses, AT&T had second quarter earnings of 69 cents a share.

Wall Street was expecting AT&T to report earnings of 63 cents a share on revenue of $33.04 billion.

AT&T is also about to close the acquisition of DirecTV with plans to deliver content over its infrastructure.

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Among the key themes from AT&T's report:

  • AT&T added about 600,000 tablets.;
  • The company said two-thirds of its base is off of its subsidy plans.
  • Wireline revenue was $14.21 billion, down 2.9 percent from a year ago.