A day after AT&T’s proposed merger with T-Mobile was assailed for potential anti-trust issues by a key senator, the telco had a lot to smile about with its Q2 earnings: it managed to exceed analysts’ expectations in terms of revenue and the number of new subscribers (though profits did drop). No mean feat considering this was the first full quarter where it had to share rights to sell the iPhone in the U.S.
Some of the highlights from AT&T’s Q2:
– The company added 331,000 net subscribers in the quarter, compared with the average expectation for 91,000 from seven analysts contacted by Reuters. In addition, it’s a major turnaround from Q1’s low 62,000 new additions.
– It added 137,000 prepaid subscribers and 379,000 connected devices such as the Kindle and iPad
– AT&T (NYSE: T) reported 9.5 percent growth in wireless revenues, with a 7.4 percent increase in wireless service revenues.
– The company activated 3.6 million iPhones and doubled Android device sales from a year ago, making up 40 percent of smartphone sales.
– This was AT&T’s “best-ever” Q2 in terms of smartphone sales of 5.6 million. Nearly 70 percent of total postpaid sales were smartphones.
– There was a 202,000 net gain in AT&T U-verse TV subs. It now has 3.4 million in service.
– 21.9 percent growth in wireline consumer Internet Protocol (IP) data revenues to reach nearly half of consumer revenue, driven by continued AT&T U-verse expansion.