AT&T beats profit estimates in Q1, sells 4.3 million iPhones
AT&T just posted another stellar quarter, thanks to the increased data usage coming from both smartphones and wireline data consumption increase. The carrier made about a billion more from data compared to the January-March period of last year.
In total AT&T locked in $31.8 billion of revenue, of which it netted $3.6 billion in profit, or about $0.6 a share, beating Wall Street's consensus of $0.57 a share.
As per the boss Randall Stephenson, AT&T's chairman and chief executive officer:
We continue to capitalize on our terrific momentum in mobile Internet. Smartphone and branded computing device sales continue to set a record pace, mobile data revenues were up nearly 20 percent, and we achieved this growth with expanding margins. These results add confidence in our outlook for the year.
30% of its smartphone customers on contract are using 4G-capable handsets. Tablets and tethering plans also broke the previous record in sales, contributing to the overall rosy picture, and churn rate was the lowest in seven quarters.
AT&T will have a conference call at 10AM Eastern, but out of the 5.5 million smartphones sold, the carrier said 4.3 million were of the Apple variety. Verizon sold a million of them less than the previous quarter, and AT&T's 4.3 million number is 3.3 million short of the Q4 record, so Apple's earnings today might get interesting.