AT&T Inc. (NYSE: T) reported a loss of $6.7 billion for the fourth quarter owing to the breakup fee it had to pay T-Mobile US Inc. for its failed merger attempt, as well as changes in how it reports pension benefits. (See AT&T Drops Bid to Acquire T-Mobile.)
The carrier did, however, report its best quarter yet for smartphone sales. It sold 9.4 million smartphones, including 7.6 million iPhone activations, handily beating out Verizon Wireless 's 4 million iPhones sold. (See VZ iPhone Boosts Data, Shaves Margins in Q4.)
AT&T lost $1.12 per share on revenues of $32.5 billion in the first quarter. A year earlier it reported a profit of $1.1 billion or 18 cents a share on revenues of $31.4 billion.
Non-GAAP earnings came out to 42 cents per share. Analysts polled by Thomson Reuters expected non-GAAP earnings of 43 cents a share on sales of $31.95 billion.
Shares of AT&T are down 56 cents (1.85%) to $29.65 in early morning trading.
re: T-Mobile Breakup Causes $6.7B Q4 Loss for AT&T At&t got a 7-year roaming agreement to assist with capacity issues as part of this "fee". Also, it seems that AT&T paid T-Mobile 10MHz of spectrum which helps AT&T once T-Mobile builds a network for AT&T customers to roam on.
Looks like a good situation for everybody except for T-Mobile customers who still don't have an iPhone option.
Oh well. Unlimited Data on Sprint still looks like a best option.
It must be difficult for Phillip Humm to go to board Meetings without having an iPhone on T-Mobile US's network. After all, the US is the world's largest economy and from the press releases, iPhone users use less data than android counterparts.
re: T-Mobile Breakup Causes $6.7B Q4 Loss for AT&T At&t got a 7-year roaming agreement to assist with capacity issues as part of this "fee". Also, it seems that AT&T paid T-Mobile 10MHz of spectrum which helps AT&T once T-Mobile builds a network for AT&T customers to roam on.
re: T-Mobile Breakup Causes $6.7B Q4 Loss for AT&T
Capex is going to be slightly down in 2012, assuming the $20B AT&T is saying is literal and not rounded off. (It was $20.3B in 2011.) Wireless spending will be up, wireline down.
Verizon said capex would be down, too.
Doesn't bode well for the wireline side (except for things like 100G).
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