AT&T clocks flat Q3 growth with $31.5 billion income and $3.6 billion profit

Telecom Lead America: AT&T on Wednesday said its income and profit growth during third quarter was flat.

For the quarter ended September 30, 2012, AT&T’s revenues were $31.5 billion, flat versus the year-earlier quarter.

Third-quarter net income was $3.6 billion consistent with $3.6 billion in the year-earlier quarter.

AT&T’s growth engines were wireless, wireline data and managed IT services, representing 81 percent of total revenues and grew 6.4 percent versus the same quarter a year ago.

AT&T posted 18.3 percent growth in wireless data revenues, up more than $1 billion versus the year-earlier quarter.

It also recorded 38.3 percent growth in U-verse revenues.

AT&T’s growth in strategic business services revenues was 11.4 percent.

Postpaid wireless subscriber ARPU grew 2.4 percent to $65.20.

Smartphone sales touched 6.1 million. AT&T said 4.7 million iPhones were activated during the quarter.

Wireline consumer revenue increased 2 percent. Total wireline broadband data ARPU was up almost 10 percent year over year.

“We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks,” said Randall Stephenson, AT&T chairman and chief executive officer.

“In wireless, we had another excellent smartphone quarter, penetration of usage-based mobile data plans continues to climb, and our 4G LTE network build is ahead of schedule. In wireline, our IP network continues to deliver strong gains in U-verse high speed Internet connections, which helped drive an almost 10 percent increase in broadband data ARPU,” Stephenson added.

Total wireless revenues, which include equipment sales, were up 6.6 percent year over year to $16.6 billion. Wireless service revenues increased 4.5 percent, to $14.9 billion, in the third quarter. Wireless data revenues — driven by mobile Internet access, access to applications, messaging and related services — increased by more than $1 billion, or 18.3 percent, from the year-earlier quarter to $6.6 billion. Third-quarter wireless operating expenses totaled $12.3 billion, up 11.7 percent versus the year-earlier quarter, driven by increased smartphone volumes, and wireless operating income was $4.4 billion, down 5.6 percent year over year.


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