U-verse, iPhone drive AT & T’s Q1
While holding exclusive rights to the iPhone continues to be a big part of whatever success AT&T is having, U-verse made a nice contribution to the company’s first quarter.
AT&T reported 32.5 percent growth in wireline consumer IP data revenues driven by AT&T U-verse expansion and broadband gains. The company claimed a net gain of 231,000 in U-verse TV subscribers (to reach a total of 2.3 million) and a net gain of 255,000 wireline broadband connections.
More than three-fourths of U-verse TV subscribers have a triple- or quad-play option, the company said. U-verse deployment now reaches approximately 24 million living units. Companywide, penetration of eligible living units is 13 percent; across areas marketed to for 24 months or more, overall penetration exceeds 20 percent.
As for mobile broadband, the company reported adding a total of 1.9 million wireless subscribers, to reach 87 million. That led to a 10.3 percent increase in wireless service revenues. AT&T also said it experienced 29.8 percent growth in wireless data revenues, up $947 million versus the year-earlier quarter. Total wireless data revenue reached $4.1 billion.
That wasn’t just smartphones. The company pointed out increased traffic from other connected devices such as e-readers, global positioning systems and alarm monitoring systems. The company said the number of connected devices in service increased by 1.1 million in the quarter to reach 5.8 million.
Another growth category was business services. AT&T said it had 14.9 percent growth in revenues from business services such as Ethernet, VPNs, hosting and application services.
Capital expenditures totaled $3.3 billion, including a 34 percent increase in wireless-related capital investment ,versus the year-earlier quarter. The company is still upgrading its network from 2G technology to 3G.
AT&T reported $30.6 billion in first-quarter consolidated revenue, up $78 million, or 0.3 percent, versus the year-earlier period.
First-quarter 2010 net income attributable to AT&T totaled $2.47 billion, down 20 percent from the $3.1 billion reported in the similar period last year. The company attributed the drop to a charge of $995 million “related to recently enacted changes in the tax treatment for the Medicare Part D subsidy.”