AT&T Inc. (NYSE: T) today posted strong first quarter results thanks to the continuing popularity of the iPhone and its ability to squeeze more savings from the BellSouth merger.Net income rose to $3.46 billion, or 57 cents a share, from $2.85 billion, or 45 cents. Sales climbed 6% to $30.7 billion. On an adjusted basis, profit was 74 cents. The results matched the estimates of analysts surveyed by Thomson Financial, which in this market is good news. Shares of the telecommunications company were trading up in early morning market action.
"Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook," said Chief Executive Randall Stephenson in the earnings release.
Among the highlights:
- Total wireless revenue increased 18.3% year-over-year to $11.8 billion. Wireless service revenue, which excludes handset and accessory sales, grew 17.1% to $10.6 billion. Growth was driven by strong subscriber gains and continued improvement in ARPU (average monthly revenues per subscriber).
- Wireless data revenues grew 57.3% to $2.3 billion, reflecting surging demand for Internet access, e-mail, messaging, data access and media bundles.
- The first quarter net gain in wireless subscribers totaled 1.3 million. AT&T ended the quarter with 71.4 million subscribers.
- AT&T's broadband revenue grew 13.2% in the first quarter to $1.4 billion.
- Total video connections, which include AT&T U-verse service and bundled satellite television service, increased by 264,000 to 2.6 million.
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