SBC: Our Best DSL Quarter Ever

SBC’s financials are in a bit of a funk, as it tries to digest AT&T Wireless and AT&T respectively. The company reported net income of about $885 million for the quarter, down from $1.9 billion (or 58 cents a share) for the same quarter a year ago. Actually if you took out the merger related costs, the SBC income was $1.1 billion, still a pretty steep decline from last year. Last year’s income included profits (about 22 cents a share) from the sale of SBC’s investment in Belgian telecommunications firm Belgacom SA. Still earnings this year, 27 cents a share are down from 36 cents a share. Now for the good news – the company added 504,000 DSL lines — its best-ever quarterly gain — for a total of 5.6 million. DSL/Internet revenue jumped 28% from a year ago. And that’s despite discounting and bargains the company has been offering to entice new subscribers. (Software guys call it end of the quarter channel stuffing!) I guess the battle is between them and Comcast now for the top spot.