AT&T reports 26% increase in second-quarter earnings

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Alex White

22 July, 2010

On Thursday, July 22 2010, the company reported earnings of $4 billion compared to $3.2 billion in the last year'' quarter. The data of sales showed a rise of 0.6% to $30.8 billion as against the last year's corresponding quarter.

AT&T reports a 26% year over year increase in its earning in the second-quarter. A record number of iPhones, 3.2 million of them, were activated on AT&T’s network contributed to this growth.

On Thursday, July 22 2010, the company reported earnings of $4 billion compared to $3.2 billion in the last year'’ quarter. The data of sales showed a rise of 0.6% to $30.8 billion as against the last year’s corresponding quarter.

The company went on to acknowledge that fact that as many as 27% of the iPhone buyers this year were new ones which were a part of the 3.2 million iPhone connections this quarter. The company sells the iconic iPhone from Apple via its stores with a two year contract locked phone. AT&T added that the pre-orders for the iPhone 4 were as much as 10 times higher on the first day as against the iPhone 3GS a year ago.

There were a very small chunk of people who exited the AT&T network. The exiting customers rate fell to a mere 1.29 percent from 1.48 percent a year ago. Overall, the company said that they have added as many as 1.6 million new subscribers in this quarter which took the total to 90.1 million. This is a 13 percent gain over the last year.

"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow," Randall Stephenson, AT&T chief executive officer, said in a statement. "These results add to our confidence going into the second half of the year."

Not only the iPhone but the iPads were a hit too. Beyond the contribution of the iPhone, other areas played a role in the earnings growth. iPad is barely a few months old, but AT&T claims that it has activated 400,000-500,000 iPad 3G in this quarter.

The sales from wireless data segment which includes Internet access, messaging, and related services, rose by $936 million, or 27 percent, to $4.4 billion. The company saw an increase of 24 percent in customers opting for data services over the year ago quarter.

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