Gains in Wireless, Broadband Help Lift AT&T’s Earnings

GAINS IN WIRELESS CUSTOMERS HELP LIFT AT&T'S EARNINGS
[SOURCE: New York Times, AUTHOR: Laurie Flynn]
Capping a whirlwind year of merging and rebranding that has come to characterize the telecommunications business, AT&T reported a 17 percent increase in quarterly profits driven by a sizable increase in wireless subscribers. Bright spots in AT&T’s report were its wireless and high-speed Internet businesses. The wireless business is seen as the main driver of growth, with that operation adding a net 2.4 million customers for a total of nearly 61 million. Wireless service revenue was up 13.1 percent, while wireless data revenue grew 68.6 percent. The company’s high-speed Internet business grew 23 percent. AT&T’s traditional consumer phone lines totaled 25.3 million at the end of December, down 5 percent from 26.7 million a year ago, illustrating the challenge the company faces as it adapts to the decreasing demand for wire-line phone service. In its final quarter as an independent company, BellSouth had profit of $1.2 billion, 29 percent higher than a year earlier. Revenue increased 4.6 percent, to $9.1 billion. During the quarter, BellSouth added 183,000 new high-speed Internet connections, but access lines were down 6.4 percent compared with last year. The report from AT&T came a day after Cingular issued a quarterly earnings report for the last time. On Wednesday, Cingular reported its quarterly profits more than tripled to $782 million as it added 2.4 million new subscribers. That report led AT&T shares to gain almost 4 percent. For the full year, AT&T reported $7.36 billion in net income, or $1.89 a share, a 54 percent increase over the $4.79 billion, or $1.42 a share, last year. Revenue was $63.1 billion, a 44 percent increase from $43.8 billion in 2005.
http://www.nytimes.com/2007/01/26/technology/26phone.html
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See also --
* AT&T's Delivery of TV Hits a Glitch
AT&T's rollout of its new television service is being delayed by glitches in the Microsoft Corp. technology that helps power the Internet-based system. The phone giant has begun offering the service in 11 markets, but problems with the Microsoft software have slowed the rollout, AT&T Chief Financial Officer Rick Lindner said in an interview. AT&T has decided against heavy marketing of the TV service because it doesn't want demand to increase until the problems are solved, he said.
http://online.wsj.com/article/SB116977140774288415.html?mod=todays_us_ma...
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