AT&T has reported significant growth in both its revenue and net income for the second quarter of 2008, with interest in Apple's iPhone spurring strong mobile and mobile data numbers.
AT&T has reported its net income of $3.8 billion for the second quarter, up 31 percent from the $2.9 billion it reported in the second quarter of 2007. Adjusted net income was up slightly, from $4.3 billion to $4.5 billion, with the adjusted numbers not to include expenses related to AT&T's recent mergers.
Meanwhile, revenue for the second quarter was $30.9 billion, up 4.7 percent from the second quarter of 2007 or up 3.6 percent, using adjusted numbers. Adjusted earnings per share was $0.76, meeting expectations of analysts polled by Thomson Financial.
AT&T officials said their deal with Apple has helped drive the growth. AT&T has an exclusive agreement to provide mobile service for the iPhone in the domestic market. In addition, Apple has released a new version of the iPhone, called iPhone 3G, on July 11. However, strong sales of the new device did not count on AT&T's second-quarter numbers, as the quarter ended June 30.
According to Randall Stephenson, AT&T chairman and CEO, AT&T is all about deploying and enhancing premier networks and products to deliver this world to both business and consumers." Yet, the Apple iPhone 3G is a dramatic example of this transformation.
Even without the iPhone 3G to boost the quarter's numbers, AT&T reported that mobile revenue increased by 15.8 percent to $12 billion, with mobile service revenue up 14.8 percent. Moreover, AT&T reported that wireless data revenue was up 52 percent to $2.5 billion. Text messaging volumes on AT&T's mobile network tripled from the second quarter of 2007. Unfortunately, wireline voice revenue was down 8.3 percent to $9.5 billion. However, wireline data revenue was up 5.4 percent to $6.1 billion.
AT&T also reported that 170,000 new potential customers have signed up for its U-verse TV service that delivers TV service over Internet Protocol networks. Recently, AT&T has 549,000 U-verse TV subscribers.
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