AT&T earnings: Wireless and nothing else

AT&T's (NYSE: T) wireless business was all it had to talk about when it reported second-quarter results this morning. For good reason too; it is the company's only good operation. Numbers were not really comparable to last year, because of the merger with BellSouth and Cingular.

In the second quarter of 2007, AT&T reported revenues of $29.5 billion, up from $15.8 billion in the year-earlier quarter, prior to AT&T's acquisition of BellSouth Corporation and the accompanying consolidation of wireless results. But, on a proforma basis with the combined company factored in, revenue was up only 2%.

Wireless revenue rose 15% to $9.5 billion. The company added 1.5 million wireless customers to hit 63.7 million. The company only activated 146,000 Apple iPhones in June, but claims demand has been good in July.

AT&T will need the iPhone. Consumer landline business was up only 0.4% for the period and the new U-verse, home TV and broadband initiative ended that quarter with 51,000 subscribers. A long, long way from competing with cable.

The stock is down in the premarket. It should be. The company is a one-legged stool.

Douglas A. McIntyre is a partner at 24/7 Wall St.