Mobile, TV customers drive AT&T revenue growth

AT&T posts its second highest quarter for U-verse TV subscriber growth

AT&T posted gains in revenue and net income for the third quarter of 2013, with gains in mobile phone and U-verse TV subscribers driving the growth.

AT&T on Wednesday reported revenue of US$32.2 billion for the third quarter, a 2.2 percent increase from the third quarter of 2012. Net income was $3.8 billion, up 4.9 percent. Earnings per share was $0.66, beating analyst expectations by one cent.

"There is a lot we really like about the quarter," said John Stephens, AT&T's CFO. AT&T's efforts to expand its 4G mobile services and shift its voice network to IP, announced in November 2012, are paying off, he said during a conference call.

Even after large additions of U-verse TV and broadband customers, there's more room for growth as AT&T expands its broadband network and increases speeds in many areas, he said.

The company added 989,000 mobile phone customers during the quarter, including 178,000 smartphone and 388,000 tablet customers. Mobile revenue was $17.5 billion, up 5.1 percent from a year earlier, and mobile data revenue was up 17.5 percent to $5.5 billion, the company said.

Data revenue growth has "a lot of runway" as customers continue to use more mobile data, Stephens said.

In AT&T's wireline division, revenue was $14.7 billion, down 1 percent from a year earlier. But the company's U-verse broadband and video revenue grew 28.1 percent from a year ago. U-verse TV had its second highest growth quarter ever, by adding 265,000 subscribers to reach 5.3 million, the company said. U-verse broadband added 655,000 customers to reach 9.7 million, the company said.

Overall, AT&T had a net loss of 26,000 wireline broadband customers during the quarter, with DSL losses offsetting U-verse gains.

AT&T's revenue from business customers were $8.8 billion, down 2.6 percent.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's email address is grant_gross@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuestelecommunicationfinancial resultsat&tJohn Stephens

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?