AT&T 1Q07 results

Publié le par Jean Arnal

AT&T reported strong 1Q07 results. Revenues rose to $29bn, from $15.7bn a year ago (non proforma), but includes BellSouth and its 40% stake in Cingular from now. Net income amounted to $2.8bn, up 100% (non proforma). The operating income margin grew to almost 24%, up from just above 17% a year ago. The wireless unit, Cingular, reported $10bn in revenues (up 11%) thanks to strong ARPU growing 1.5% to $49.2 (driven by data ARPU) and churn dropping to 1.7% (-0.2points). Cingular income jumped over 90% to $1.5bn in the quarter. Cingular added 1.2m new customers in the period to 62.2m. The wireline unit reported revenues of $18bn and suffered from fixed – mobile substitution. AT&T lost 285,000 lines in the quarter, but added 691,000 net new digital subscriber line customers and 187,000 TV customers. It added 10,000 new users to its U-Verse Internet TV service to a total of 18,000. Strong earnings results were also driven by $900m in cost savings in the quarter, compared to $2bn expected for the year.

Publié dans Top stories

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