AT&T reports better results than expected, with a 9.7% drop in Q1 earnings

AT&T reports better results than expected, with a 9.7% drop in Q1 earnings
Thanks to the strong performance of its wireless division due to increased sales of the Apple iPhone 3G, AT&T reported first quarter earnings of $3.1 bln. The 53 cents a share is still a 9.7% drop as compared to the initial figure posted in Q1 last year, but still beat the expectations of Wall Street analysts.

The carrier has added 1.2 mln. new subscribers after accounting for those who left the network and 875,000 of the new customers signed a contract. This is a gain of 24.1% from last year's figures. Ma Bell sold 1.6 million Apple touchscreen devices with 40% of their buyers becoming new AT&T customers. Craig Moffett, an analyst with Sanford Bernstein, said the iPhone was the main reason behind the networker's growth, as revenues from wireless data rose 39% in the period to $3.2 bln. In comparison to the strong wireless performance, AT&T reported that revenues from its traditional wireline business dropped 12.2% in the same quarter.

source: NY Times

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15 Comments

1. vzw fanman

Posts: 1977; Member since: Dec 11, 2008

im so happy that at&t is doing so well.

2. Keepin_Real

Posts: 23; Member since: Apr 22, 2009

Let's see if those "SO CALLED" economic analysts are correct that the wireless industry will be effected by the economic situation we are currently in. So far those experts are no smart than a Fifth grader!!!!

3. belve14

Posts: 113; Member since: Mar 31, 2009

Thats good for AT&T....they better hope that they can hold the rights to the Iphone forever...cause without that well AT&T will be good for oh thats right nothing.

9. vzw fanman

Posts: 1977; Member since: Dec 11, 2008

i TOTALLY agree .

4. PL007

Posts: 22; Member since: Feb 09, 2009

It's still early in 2009. Iphone or not, VZW, Sprint, TMO, all of them could be in for a rough year.

10. E.N.

Posts: 2610; Member since: Jan 25, 2009

i TOTALLY agree

5. wifidude

Posts: 25; Member since: Apr 17, 2009

I think AT&T will continue to be the only carrier or iPhone. Apple already they won't make a CDMA iPhone because it would not be easy to distribute globally - most nations use GSM. China would be a hot market for a CDMA but they are entering the Chinese Market with a GSM. So, GSM-wise, on the US, it is between T-Mobile and AT&T. I don't see Apple giving the iPhone to T-Mobile as they are flag shipping G-phones and Android. What do you think on this?

7. *HOVA*

Posts: 564; Member since: Dec 11, 2008

I agree. All companies are in the biz to make money. If they made a CDMA version only it would deffinetly cut into their pockets. I could see them making both CDMA and GSM, but this would cut the profits a little as it would require 2 diff manufacturing processes to an extent. I'm sure eventually they will make both but have a feeling for the time being it will be AT&T exclusive through 2010.

6. TestManVZW

Posts: 25; Member since: Apr 14, 2009

Pretty decent results for AT&T. I would be interested in seeing there churn rate as well. I dont know why they would put some of their 1st quarter stats on here but not all?

8. TestManVZW

Posts: 25; Member since: Apr 14, 2009

Just looked it up. AT&T's churn rate was 1.2% last quarter if anyone else is interested. Total customer base is now at 78.2 million customers.

11. att_agent

Posts: 96; Member since: Feb 26, 2009

this is pretty much the only thing att has goin for them besides theyr bussiness account but hey good for them lets just hope that when they go to renegotiate theyre contract they stick with it we all know verizon may get a peice of the pie

12. E-Z DUZ-IT

Posts: 36; Member since: Mar 17, 2009

No iphone for Verizon,or any one else till every one is 4G. Then, and only then everyone will have it. Also hard times doesn't exactly curb what phone you want, it curbs the calling and data plans, text, etc...

13. E-Z DUZ-IT

Posts: 36; Member since: Mar 17, 2009

EVERY BODY WANTS SOME OF THAT PIE. you know verizon honchos kick there own ass every night before they go to sleep. oohh, the one that got away.

14. E-Z DUZ-IT

Posts: 36; Member since: Mar 17, 2009

iPhone 3G added support for UMTS service, the third generation mobile network standard that all GSM providers are moving toward. Development of UMTS is managed by the 3rd Generation Partnership Project (3GPP) organization. For Verizon, the primary competitor to AT&T in the US, the next generation mobile network means Long Term Evolution (LTE). That future specification is sometimes referred to as 4G, but is really the next stage of 3GPP development. AT&T currently operates a 3GPP Release 5 network now being upgraded to incorporate newer improvements in the 3GPP specifications; LTE is simply a name attached to the forthcoming 3GPP Release 8.

15. E-Z DUZ-IT

Posts: 36; Member since: Mar 17, 2009

Once LTE networks are built out over the next several years, Verizon's CEO told the Wall Street Journal that an LTE version of the iPhone would make Apple "more likely" to want to work with Verizon in addition to AT&T. If all goes according to plan, at some point early in the next decade both Verizon and AT&T will operate compatible networks, just like all the providers in Europe. However, AT&T has already stated that it plans to upgrade its existing network incrementally, which is a much easier path toward LTE than Verizon's plans to completely replace its CDMA/EVDO network with LTE. During that time, AT&T will also be able to continue to advertise a faster mobile network, and Apple will be able to leverage global support for 3GPP mobile networks to release increasingly faster versions of the iPhone

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