Earnings: AT&T Profits Fall 16 Percent; Wireless Subs Grow, Along With Related Costs

AT&T

While AT&T (NYSE: T) is clearly benefiting from the growth in wireless subscribers, the costs are also adding up. The company’s Q2 profits fell about 16 percent to $3.2 billion ($0.54 EPS) from last year’s $3.8 billion ($0.63 EPS). Revenues slipped 0.6 percent to $30.7 billion, compared with $30.9 billion in Q208. Thomson Reuters (NSDQ: TRIN) analysts had been expecting EPS of $0.51 on $30.6 billion in revenues, according to the WSJ. As for wireless subs, AT&T, which has an exclusive contract with Apple (NSDQ: AAPL) for the iPhone, gained 1.2 million in Q2, for a rise of 29 percent over Q208; sequentially, the Q2 subscriber numbers increased 31.8 percent over Q109. However, as part of its contract with Apple, AT&T paid the company about $720 million in subsidies, which impacted its earnings.

2Q 2009 2Q 2008 Analysts’ Estimates For 2009
EPS $0.54 $0.63 $0.51
Net Income $3.2B $3.8B
Revenue $30.7B $30.9B $30.6B

Earnings release | Webcast (10:00 AM EDT)

— Texting revenues: AT&T

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