Monday, July 23, 2007

AT&T Sees Strong Wireless Growth

Citing strong growth in wireless services, AT&T reported Q2 revenues of $29.5 billion, up from $15.8 billion in the year-earlier quarter, prior to AT&T's acquisition of BellSouth and the accompanying consolidation of wireless results. AT&T's second-quarter 2007 reported earnings per diluted share were $0.47 versus $0.46 in the year-earlier quarter. Adjusted earnings per share, which exclude costs and accounting effects related to major acquisitions, were $0.70, up 20.7 percent versus adjusted earnings per share of $0.58 in the year-earlier quarter. Some highlights for the quarter:

  • AT&T had 63.7 million wireless subscribers at the end of Q2,up by 1.5 million in the quarter.

  • Wireless service revenues grew 14.9 percent versus the year-earlier quarter to $9.5 billion. Total wireless revenues, which in addition to services include revenues from sales of handsets and accessories, were up 12.7 percent to $10.4 billion.

  • Wireless data revenues increased 66.9 percent versus the year-earlier quarter to $1.7 billion -- driven by strong increases in both consumer and business data usage including messaging, downloads, media bundles, laptop connectivity, smart phone connectivity and enterprise vertical market solutions. At the end of second quarter, AT&T's wireless operations had nearly 37 million active data users, up 39 percent over the past year.

  • Total service ARPU in the second quarter was $50.63, up 3.6 percent.

  • During the first two days of iPhone availability in late June, AT&T activated 146,000 iPhone subscribers, more than 40 percent of them new subscribers.

  • AT&T's enterprise revenues were $4.8 billion, up 2.0 percent sequentially and down 2.1 percent versus the year-earlier quarter. This represents an improvement from declines in the first quarter of this year of 4.1 percent sequentially and 4.0 percent versus the year-earlier quarter.

  • Regional business revenues increased 4.5 percent versus the year-earlier second quarter with growth in both voice and data services. Regional business revenues from small and midsized firms increased more than 6 percent, consistent with year-over-year growth in the first quarter of this year.

  • Regional consumer revenues increased 0.4 percent, driven by a net gain of 946,000 regional consumer connections (retail access lines, high speed Internet plus video connections) over the past year.

  • Consumer primary lines declined by 193,000 in the second quarter versus a pro forma decline of 528,000 for the year-earlier quarter.

  • U-verseAt the end of the second quarter, AT&T had 51,000 U-verse video subscribers, up from 13,000 three months earlier. Total video connections, which include AT&T U-verse service and bundled satellite television service, increased by 200,000 in the second quarter to 1.9 million. At the end of the second quarter, 5.9 percent of AT&T's primary consumer lines also had a video solution from AT&T, up from 3.8 percent a year earlier. AT&T U-verse services are now available in parts of 23 metro areas, and sales and installations have ramped significantly.

  • AT&T's high speed Internet connections, which include DSL, AT&T U-verse high speed Internet and satellite broadband services, increased by 400,000 in the quarter, reflecting typical seasonality due to end-of-school-year disconnects. At the end of the quarter, AT&T had 13.3 million consumer and business high speed Internet connections, up 2.2 million, or 20.0 percent, versus pro forma totals a year earlier. Across AT&T's regional operations, 35.0 percent of its consumer primary lines now have the company's broadband service, up from 27.8 percent one year earlier.