Cingular's Subs-stantial Quarter
The top cellular carrier in the U.S. reported this morning that net income grew to $847 million from $222 million in the same quarter a year ago. Cingular's total revenues were $9.6 billion, up 9.2 percent over revenue for the year-ago quarter and 3.6 percent compared to the second quarter of 2006.
"The increasing pace of incremental revenue growth is a clear indication that Cingular is gaining momentum in the marketplace," wrote Technology Business Research Inc. (TBR) analyst John Byrne in a note to clients. "The company’s continued focus on the postpaid [customers who pay a monthly bill] market is the major factor driving this trend."
The Atlanta, Ga.-based joint venture between AT&T Inc. (NYSE: T) and BellSouth Corp. (NYSE: BLS) ended the quarter with 58.7 million subscribers, a year-over-year increase of 6.4 million. Verizon Wireless had around 54 million subscribers at the close of the second quarter. Sprint Corp. (NYSE: S) reported 51 million in the same time period. T-Mobile US Inc. trails the big three with 23.3 million.
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— Dan Jones, Site Editor, Unstrung