14 DAY TRIAL // Today, wireless carrier AT&T announced its financial results for the first quarter of 2010, and posted $30.6 billion first-quarter consolidated revenues, registering a growth of $78 million, or 0.3 percent, when compared to the same time frame a year ago. At the same time, the company announced $0.42 diluted earnings per share, or $0.59 before a previously disclosed non-cash charge, down from $0.53 diluted EPS in the Q1 2009.
Postpaid 3G integrated devices on AT&T's network went up by 3.3 million units in the time frame, marking the sixth consecutive quarter with growth of over 3 million. The increase included 2.7 million iPhone activations, more than one third of which were customers new to the carrier. Postpaid subscriber ARPU went up 3.9 percent on a yearly basis, while postpaid churn was 1.07 percent, down from 1.15 percent in the same time frame a year ago.
“We’re off to a great start to the year, and our fundamental outlook for the business continues to be quite positive,” said Randall Stephenson, AT&T chairman and chief executive officer. “AT&T continues to set the pace in mobile broadband, the industry’s number one growth driver, and our wireless business continues to perform at a high level, with improved margins, lower churn and overall revenues growing at a healthy clip,” Stephenson said. ”AT&T has outstanding mobile broadband capabilities today and a terrific technology path forward to lead the next wave of wireless innovation and growth. We’re investing and executing aggressively to deliver on that potential.”
According to the carrier, its operating income for the three months period ended March 31 was $6.0 billion, showing growth from the $5.7 billion registered in the first quarter of 2009. Its operating expenses were of $24.6 billion, compared to $24.8 billion a year ago, while the operating income margin was 19.6 percent, going up from the 18.8 percent registered in the year-earlier quarter. AT&T posted net income of $2.5 billion, or $0.42 per diluted share, and announced that its first-quarter 2010 cash from operating activities totaled $7.3 billion.
Other highlights from the carrier's announcement include: - 29.8 percent growth in wireless data revenues, up $947 million versus the year-earlier quarter to $4.1 billion - Substantial wireless margin expansion - 29.9 percent wireless operating income margin, up from 26.9 percent in the year-earlier quarter; 44.5 percent wireless OIBDA service margin versus 42.5 percent in the year-earlier quarter (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues.) - 32.5 percent growth in wireline consumer IP data revenues driven by AT&T U-verse expansion and broadband gains - 231,000 net gain in AT&T U-verse TV subscribers to reach 2.3 million in service, with continued high broadband and voice attach rates.