AT&T Beats Estimates, But Revenues Remained Flat

A day after Apple’s earnings were catapulted by iPhone sales, the device did pretty much the same for carrier AT&T (NYSE: T). The telco’s adjusted net income was up significantly — a $1 billion non-cash charge it attributed to the health care reform bill sent profits down by 19 percent in actual terms — and that was enough to beat analysts’ estimates. Still considering that it added 1.9 million wireless subscribers in the quarter — the highest quarterly total in company history, giving it 87 million subs in all — revenues were pretty lackluster, remaining virtually flat year-over-year. The company also signed on 2.7 million iPhone activations, with more than one-third of the activations for customers who were new to AT&T.
AT&T also said it added 512,000 postpaid subscribers, That was down from 897,000 the year before, but analysts had factored that in as well. Other highlights from the release:
— Revenue per monthly subscriber were up 10.3 percent, with postpaid subscriber revs up 3.9 percent — the fifth consecutive quarter with a year-over-year increase in postpaid ARPU
— 3.3 million net increase in 3G postpaid integrated wireless devices on AT&T