ATT 3Q08 results

Publié le par Jean Arnal

3Q08 figures show a 4% increase in revenues to $31.3bn, $5.6bn (+6%) in operating income, and $3.2bn (+5.5%) in net income. Mobile revenues reached $12.6bn (+15.4%) and ATT Mobility had 74.9m subscribers after adding some 1.7m new users in the quarter, of which about 1m high-quality subscribers with the iPhone device. But that induce higher costs, given the high cost of customer subsidies, and cause ATT' s missed earnings mark. Wireline revenues declined 2% to $17.6bn. ATT had 28.3m access lines (down 10% and -1m subs in the quarter) and 12.7m consumer broadband users (+9%). The gains in mobile were nearly offset by drops in wireline. It is true in revenues but also in income with wireline income down 8% in the quarter, while mobile income was over 20%. The concern is real, as it could be amplified by the economical crisis. So the stock price was down 6.6% after the announcement. ATT also announced it will buy Wayport, a US WiFi services provider, for $275m, and Centennial for about $1bn (this will add 1m new subs ).

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