Mergers, acquisitions, wireless contribute to AT & T’s bigger pocket
AT&T continued to lose lines, but continued to offset those losses with growth in broadband and video subscriptions. The subscriber growth helped lead to a modest increase in profit and revenue.
AT&T's regional consumer connections—retail access lines, high-speed Internet and video connections—increased by 402,000 in Q1 2007. High-speed Internet and video growth more than offset net declines in traditional access lines: Primary consumer lines across the 22 states where AT&T has its regional operations declined by 285,000 in the first quarter, compared with declines of 251,000 in the Q1 2006 and 331,000 in Q4 2006, the company said.
AT&T's video connections—including AT&T U-verse service and bundled satellite television service—increased by 187,000 in the first quarter. At the end of the first quarter, AT&T had 1.7 million total video connections in service.
The vast bulk of AT&T’s video customers continue to be DBS subscribers. AT&T’s recently launched U-verse service is now in 15 markets, but at the end of the first quarter, AT&T had only 13,000 U-verse video subs.
AT&T offered U-verse numbers from after the close of the quarter to show the service is ramping. By mid-April, U-verse installations had increased to approximately 2,000 per week, and as of April 24, U-verse subs in service had reached approximately 20,000, the company said.
Q1 2007 consolidated revenue totaled $29 billion, up nearly 50 percent year-on-year from $15.8 billion. Versus Q1 2006 pro forma revenues of $28.9 billion, AT&T's Q1 2007 revenues—adjusted to exclude the effects of purchase accounting on directory revenues—grew 1.7 percent to $29.4 billion, the company said.
"Merger integration is on track, volumes continue to be solid, and we expanded margins in both wireless and wireline,” said AT&T’s CEO Edward E. Whitacre Jr. "Wireless service revenues increased at a double-digit pace.”
The company’s wireless subs increased by 11.5 percent year-on-year to total 62.2 million. AT&T's total wireless revenues grew 11.2 percent in the first quarter to $10 billion. Wireless data revenues spiked 66.8 percent year-on-year to $1.5 billion.
AT&T's Q1 2007 wireline revenues totaled $18 billion, versus $14.4 billion reported in Q1 2006, prior to AT&T's acquisition of BellSouth. But versus pro forma revenues of $18.6 billion for Q1 2006, wireline revenues declined 3.2 percent.