Mobile, TV customers drive AT&T revenue growth
AT&T posts its second-highest quarter for U-verse TV subscriber growth
IDG News Service - 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 $32.2 billion for the third quarter, a 2.2% increase from the third quarter of 2012. Net income was $3.8 billion, up 4.9%. Earnings per share was 66 cents, 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% from a year earlier, and mobile data revenue was up 17.5% 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% from a year earlier. But the company's U-verse broadband and video revenue grew 28.1% 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 was $8.8 billion, down 2.6%.
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 email@example.com.
- The Apple-ization of the Enterprise: Understanding IT's New World Read this paper for how to tackle Apple-ization (and the related consumerization of IT and Bring Your Own Device/BYOD).
- A Practical Introduction to Enterprise Mobility Management Read the white paper to better understand the basic concepts within mobility management and to learn how you can apply EMM technology to...
- Enterprise Mobility: A Checklist for Secure Containerization The advantages and disadvantages of the multiple approaches to containerization. Learn More>>
- Enterprise Endpoint Backup Checklist Read this checklist to learn how to create a back up strategy to quickly and easily protect your endpoint data.
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the... All Mobile/Wireless White Papers | Webcasts