& cplSiteName &

AT&T Warns of $10B Hit

Ray Le Maistre
1/18/2013
50%
50%

AT&T has issued a profit warning for its fourth quarter, citing changes to the expected returns on its pension plan and the impact of storms and smartphone sales. The operator will record a non-cash charge of about $10 billion related to the value of its pension plans, as it now expects a lower rate of return on its investments, it stated in a filing with the SEC. That will hit the company's balance sheet but not its operating figures. However, there's bad news on that front too. The impact of various storms, including Superstorm Sandy, on AT&T's service revenues and costs (mostly related to its wireless operations) is expected to result in a $175 million hit on its fourth-quarter operating income. (See Operators Slog Ahead in New York & New Jersey and Sandy: The Case for Better Cell Site Backup?) In addition, end-of-year sales of high-end mobile devices will also affect the company's profitability. AT&T noted: "Fourth-quarter total smartphone sales were approximately 10.2 million devices. Due to the high subsidies on these devices, we expect a near-term pressure on operating income, margins, and earnings per share in the fourth quarter of 2012." — Ray Le Maistre, International Managing Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
wanlord
50%
50%
wanlord,
User Rank: Light Sabre
1/21/2013 | 5:08:59 PM
re: AT&T Warns of $10B Hit
VZ also said they will have big impacts to results from the storm, but I doubt it's that much even though they are very embedded in the Northeast.
macster
50%
50%
macster,
User Rank: Light Bulb
1/20/2013 | 4:40:05 PM
re: AT&T Warns of $10B Hit
Re. subsidy, I think it'll shed light if you compare US CLV with European CLV figures.-á
year2525
50%
50%
year2525,
User Rank: Light Beer
1/18/2013 | 3:43:19 PM
re: AT&T Warns of $10B Hit
I think all the US carriers are watching T-Mobile's no subsidy plan with interest in 2013.
Ray Le Maistre
50%
50%
Ray Le Maistre,
User Rank: Light Sabre
1/18/2013 | 2:59:29 PM
re: AT&T Warns of $10B Hit
I wonder if this might cause a rethink of AT&T's subsidy strategy?
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 17, 2018, Chicago, Illinois
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Telus CTO: NFV Burden May Cripple Telcos
Iain Morris, News Editor, 5/14/2018
TM Forum Sea-Change Overcomes That Sinking Feeling
Iain Morris, News Editor, 5/17/2018
Verizon CEO Says LA Is Second 5G City
Dan Jones, Mobile Editor, 5/16/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
Swisscom: Quick off the Blocks With 5G
By Gary Maidment, for Huawei
SAIL the Atlantic With CAMTEL
By Gary Maidment, for Huawei
What's in the Box?
By Huawei
Beginning With the End In Mind
By Kevin Taylor, for Huawei
All Partner Perspectives