AT&T Beats Q2 Profit Expectations With Help From U-verse And Smartphones

Shares are up about 1% in pre-market trading after AT&T reported that gains in its wireless and digital operations outweighed the losses in its conventional wired phone business in Q2. The company reported net income of $3.9B, up 8.7% vs the same period last year, on revenues of $31.6B, +0.3%. The revenue figure was just a little behind the $31.7B that Wall Street expected. The latest figure would be +2% if you strip out AT&T’s Advertising Solutions business which it sold in May. But the earnings, at 66 cents a share, were well ahead of the 63 cents analysts forecast. The company says that wireless data revenues grew 18.8%, or $1B from last year. AT&T had 105.2M wireless customers, up 1.3M in the quarter. With 5.1M smartphone sales in Q2, about a third of AT&T’s post-paid customers now have a 4G-capable device. The telecom giant also says that it added 155,000 U-verse TV customers, bringing the total to 4.1M. About 90% of the new TV customers also subscribe to the U-verse broadband service. (more…)

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