AT&T Sees iPhone Pop in Q3
The company said it was a record quarter for wireless; it added 2 million subscribers, the highest in the company's history. AT&T cited the iPhone as a large reason for this success but did not specify how many of these additions were iPhone subscribers.
In the wireline sector, U-verse continues to grow rapidly and now has 126,000 subscribers compared to only 3,000 at the end of 2006. AT&T is on pace to exceed its goal of 10,000 installs by the end of the year as it says it is already about to eclipse that mark.
On the financial side, the reported numbers were in line with expectations. In the third quarter, AT&T earned $3.06 billion, or 50 cents a share, on revenues of $30.1 billion. In the same quarter last year it earned $2.2 billion, or 56 cents a share, on revenues of $15.6 billion.
The huge increase in earnings is due to the fact that last year's numbers were reported before AT&T's acquisition of BellSouth closed. On a pro forma basis, assuming the two companies had been merged last year, AT&T's revenues increased by only 3.2 percent versus the officially reported 92.7 percent jump.
The company's merger with BellSouth continues to help the carrier trim back redundant personnel, equipment, and operations. For the first three quarters of 2007, AT&T says it has saved $2.8 billion as a result of the merger.
— Raymond McConville, Reporter, Light Reading