AT&T reports $3 billion net income, fueled by mobile, broadband
Thursday, January 28, 2010 11:19AT&T reported net income of $3 billion for the fourth quarter of 2009, up nearly 26 percent from the fourth quarter of 2008, largely due to increases in mobile subscribers.
Revenue, however, fell slightly, from $31.1 billion in the fourth quarter of 2008 to $30.9 billion in the fourth quarter of 2009. Earnings per share was $0.51, meeting the expectations of analysts polled by Thomson Reuters.
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Mobile and broadband growth fueled the increase in net income, the company said. The company added 2.7 million mobile customers in the fourth quarter, the second highest quarterly increase in AT&T history, the company said in a news release.
The increases were driven by “rapid” adoption of smartphones such as Apple’s iPhone, e-readers and netbooks, AT&T said. Mobile operating revenue increased by 7.6 percent between the fourth quarter of 2008 and the fourth quarter of 2009, from $12.9 billion to $13.8 billion.
Mobile data revenue increased by 26.3 percent to $3.9 billion, AT&T said.
“We had a solid 2009 and led the industry in the biggest growth driver — mobile broadband,” Randall Stephenson, AT&T chairman and CEO, said in a statement. “Looking ahead, customer demand for connectivity, particularly mobile broadband and IP data, continues to be strong, and AT&T is well-positioned at the center of this growth.”
AT&T also reported an increase of 248,000 subscribers for its fiber-based U-verse television service. The company now has 2.1 million U-verse TV subscribers.
AT&T added 167,000 wireline broadband customers for the quarter. The company now has 17.3 million broadband subscribers, including wireless broadband customers.
Total wireline revenue, including traditional telephone service, declined 5.3 percent, from $17.1 billion to $16.2 billion.
For the full year, AT&T’s revenue was $123 billion, down from $124 billion in 2008. Net income for the year was down 2.6 percent from 2008, to $12.5 billion.
