Announces 3.2 million iPhone activations

Jul 22, 2010 14:17 GMT  ·  By

Mobile phone carrier AT&T today announced its financial results for the second quarter of the ongoing year. During the three months period ended June 30, 2010, the company's consolidated revenues reached $30.8 billion, marking a $194 million, or 0.6 percent, increase when compared to the second quarter of 2010. at the same time, AT&T announced that the revenues were up $278 million, or 0.9 percent, from the first quarter of the ongoing year. The carrier posted consolidated operating margin of 19.8 percent, up from 18.0 percent a year ago.

“We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year,” said Randall Stephenson, AT&T chairman and chief executive officer. “We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver — mobile broadband. I am excited by the opportunities ahead.”

When compared to the last year's second quarter, operating income was $6.1 billion, up from $5.5 billion; while operating expenses reached $24.7 billion, down from $25.1 billion. However, the carrier announced that its workforce is about 10,000 down when compared to six months ago. The carrier's net income for Q2 was $4.0 billion, or $0.68 per diluted share, marking an increase of 25.9 percent on a yearly basis.

The sales of Apple's iPhone were quite impressive too. “3.2 Million iPhone Activations. On June 24, AT&T began offering iPhone 4, the most powerful iPhone yet. Preorder sales of iPhone 4 were 10 times higher than the first day of preordering for iPhone 3GS a year earlier. For the full second quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone activations ever. Approximately 27 percent of those activations were for customers who were new to AT&T,” the wireless carrier announced.

When it comes to the rest of the year, AT&T announced that it expects “strong earnings per share growth for full-year 2010,” which would be complemented by improved consolidated operating income margins. The new outlook marks an improvement over the previous forecast, which pointed towards “stable-to-improved earnings per share, stable-to-improved consolidated operating income margins.” According to the wireless carrier, the change was determined by improved revenue trends. More info can be found here.

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