AT&T's Q2 revenue, profit gained on mobile growth
- 23 July, 2013 21:02
AT&T posted higher revenue and profit in the second quarter, with gains in its mobile unit offsetting flat wireline revenue.
The company gained 632,000 wireless subscribers and saw its mobile data revenue rise almost 20 percent. On the wireline side, the U-Verse high-speed TV and broadband service now accounts for a majority of consumer revenue, AT&T said.
AT&T's revenue grew 1.6 percent from a year earlier to US$32.1 billion. Not counting the company's former Advertising Solutions division, which was sold off in the past year, revenue was up 2.6 percent, AT&T said. Profit grew 7.6 percent to $0.71 per share, or $0.67 excluding one-time items. Both results roughly matched the expectations of analysts surveyed by Thomson Financial.
Tablets accounted for a large part of the company's net subscriber gains in mobile. Its postpaid net additions included 398,000 tablets, the company said. Meanwhile, 88 percent of AT&T's postpaid phone sales were smartphones.
Mobile competition in the U.S. is heating up, especially in the weeks since the end of the quarter, with T-Mobile USA introducing new types of subscriber plans and a rejuvenated Sprint sitting on more spectrum than either AT&T or Verizon. AT&T is making its own move in the ongoing consolidation of the industry with a plan to buy Leap Wireless, operator of the Cricket prepaid brand.