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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