These last few months , for the first time since the iPhone was release , customer finally had a choice in who their carrier would be . They ’d no longer be shackled by AT&T ’s sucktastic internet ! And what did these client do ? Well , it seems like in a deal of cases they , uh , sign on with AT&T.
All of which is well and adept , but AT&T maybe should n’t start belt down bottles quite yet ; the Verizon iPhone 4 was still an iPhone 4 , meaning if you really want one that badly you probably already had one . The real test will be a longsighted - condition one ; what will people choose once their two - year contracts are up ? Which way of life will they go if and when the iPhone 5 is released at the same time on both carriers ?
In other iStats : AT&T also report the activating of 322,000 pad of paper for the after part . Of those three calendar month , the iPad 2 had only been uncommitted for three hebdomad here in the US . Still , though , cast some insight into how important Wi - Fi iPads are to Cupertino .
10.2 Percent Wireless Revenue Growth , Record Net total and
Smartphone Sales Highlight AT&T ’s First - Quarter Results
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$ 0.57 diluted EPS , compare to $ 0.41 diluted EPS , and $ 0.58 per diluted share when
excluding significant token , in first quarter of 2010
fused revenues of $ 31.2 billion in the first quartern , up more than $ 700 million , or
2.3 percentage , versus the year - earlier period
10.2 percent growth in wireless receipts , with an 8.6 percent increase in radio
service receipts
Best - ever first - quarter increment in full wireless reader , up 2.0 million to achieve
97.5 million reader in service , with profit in every category
Best - ever first - quarter smartphone sale of more than 5.5 million
iPhone activating increase nearly 1 million year over year to 3.6 million , with
year
Best - ever first - quarter connected gimmick net add of 1.3 million
up 421,000 , doubling since the first quarter of 2010 to hit 3.4 million
23.9 pct growth in wireless information tax revenue , up almost $ 1 billion versus the year-
early twenty-five percent
Postpaid indorser ARPU ( average monthly revenues per indorser ) up 2.4 percentage to
$ 63.39 , the 9th consecutive stern with a year - over - year increase
Postpaid butter churn stable eject the impact of the Alltel and Centennial integration
Third consecutive quarter of year - over - twelvemonth growth in wireline consumer receipts ,
driven by AT&T U - verse ® services
proceed mellow broadband and spokesperson bind rates
26.1 percent ontogeny in wireline consumer IP data point revenues , driven by AT&T U - verse
expansion
175,000 net addition in wireline broadband connectedness
Strategic business services revenues go on to increase , up 18.8 percentage yr over
class , the best functioning in more than two years
Note : AT&T ’s first - quarter net profit conference call will be distribute live via the Internet at 10 a.m. ET
on Wednesday , April 20 , 2011 , at www.att.com/investor.relations .
DALLAS , April 20 , 2011 – AT&T Inc. ( NYSE : T ) today account first - quarter result , highlighted by
continue robust mobile broadband growth with record first - quarter smartphone sales agreement and a two - plica
yr - over - year increase in trademark calculation contributor .
“ We delivered another robust mobile broadband growth quarter for a very unanimous start to the twelvemonth , ” enounce
Randall Stephenson , AT&T chair and main executive officer . “ We put up double - dactyl radio set
tax revenue growth , and we set newfangled first - quarter book in full net adds , tie machine net adds and
strong .
“ nomadic broadband networks are driving unprecedented growing and innovation , and AT&T is wager a
lead purpose in work these benefit to customers , ” Stephenson state . “ That ’s why our agreement to
acquire T - Mobile USA , which we announced in March , is so important . Combined , the two companies ’
spectrum and connection assets will allow us to simultaneously cover spectrum government issue created by this
increased demand and improve customer ’ connection experience as volume keep to grow . ”
First - Quarter Financial Results
For the twenty-five percent ended March 31 , 2011 , AT&T ’s consolidated revenues totaled $ 31.2 billion , up
more than $ 700 million , or 2.3 percent , versus the year - early quarter , marking the company ’s fifth
consecutive quarter with a year - over - year revenue increase .
compare with results for the first quarter of 2010 , operating disbursement were $ 25.4 billion versus
$ 24.6 billion ; operating income was $ 5.8 billion , down from $ 6.0 billion ; and AT&T ’s operate income
gross profit margin was 18.6 percent , compared to 19.6 percent .
First - fourth part 2011 net income attributable to AT&T totaled $ 3.4 billion , or $ 0.57 per diluted share .
These results compare with reported final income attributable to AT&T of $ 2.5 billion , or $ 0.41 per
diluted share , in the first stern of 2010 . except 2010 meaning point , pay per share for the
first quarter of 2011 was stable with earnings per share of $ 0.58 per dilute share in the year - ago first
one-fourth .
First - quarter 2011 cash from operating activities number $ 7.7 billion , and capital expenditure totaled
$ 4.2 billion . barren hard cash flow – cash from operating activities minus uppercase expending – tally
$ 3.6 billion .
Wireless Operational Highlights
Led by unattackable performance in mobile broadband in the first fourth part , AT&T delivered continued solid
growth in its wireless business enterprise , include record first - quarter ratifier maturation and stable churn .
highlighting included :
2
strength in the reseller TV channel and a record first after part for connected devices such as eReaders ,
security systems , fleet management arrangement and a master of ceremonies of other products . Retail mesh add for the
quarter include prepaid net attention deficit disorder of 62,000 . Excluding the impacts of the Alltel and Centennial
integrating migrations , prepaid earnings adds were approximately 165,000 . Prepaid net adds were 85,000 .
Connected twist mesh lend were 1.3 million , and reseller net adds were 561,000 .
computing endorser , a new growth sphere for the company that include tablets , aircards , MiFi
equipment , tether plans and other information - only devices . AT&T add up 421,000 of these devices to reach
added in the quarter . More than 80 percent of those tablets were booked to the prepaid category .
Sequential Churn Stable . butter churn levels were comparatively unchanging sequentially . entire butter churn was
1.36 percent versus 1.30 percent in the first stern of 2010 and 1.32 pct in the fourth quarter
of 2010 . Postpaid churn was 1.18 percentage , compare to 1.07 percent in the year - ago first stern
and 1.15 percent in the fourth quarter of 2010 . Excluding the impact of the Alltel and Centennial
migrations , prepaid churn was 1.12 per centum for the one-quarter , compared with 1.05 pct in the year-
ago quarter and 1.10 percent in the 4th quarter of 2010 .
Smartphone Sales Remain Strong . AT&T had another potent quarter of smartphone sales .
( Smartphones are voice and data devices with an modern operating system to better manage datum
and cyberspace access . ) More than 5.5 million smartphones were sold in the first quarter , the third - high
tail ever and an growth of more than 60 percent year over year . During the quarter , 3.6 million
iPhones were activated . Approximately 65 per centum of postpaid sales were smartphones .
up from 34.7 percent a year in the beginning . The intermediate ARPU for smartphones on AT&T ’s web is
1.8 times that of the companionship ’s other devices . More than 80 percent of smartphone contributor are on
Double - Digit Wireless Revenue Growth . Total wireless tax income , which let in equipment cut-rate sale ,
were up 10.2 percentage year over year to $ 15.3 billion . Wireless help revenues increased 8.6 percent ,
to $ 14.0 billion , in the first quarter .
Wireless Data Revenues Lead Growth . Wireless data point revenues – drive by messaging , net
access code , approach to applications and related servicing – increase nearly $ 1 billion , or 23.9 percent ,
from the year - former quarter to $ 5.1 billion . AT&T postpaid wireless ratifier on monthly data design
increase by 18.7 percent over the past yr . Versus the year - earlier one-fourth , full textbook messages
gestate on the AT&T internet increased by more than 25 per centum to 179.8 billion , and multimedia
messages increased by 54.2 percent to 3.7 billion .
2.4 percent versus the class - earlier quarter to $ 63.39 . This marked the 9th consecutive quarter AT&T
has posted a year - over - year step-up in prepaid ARPU . Excluding the impact of the Alltel unification ,
3
postpaid ARPU growth would have been about 3 percent class over yr . Postpaid data ARPU reached
$ 23.35 , up 16.0 percent versus the year - earlier quarter .
Wireless Margins reverberate Strong Smartphone Sales . First - quarter wireless leeway ponder
increase operating costs assort with strong smartphone sales , high client upgrade level and
the Alltel and Centennial amalgamation costs , countervail in part by improved operating efficiencies and further
wireless operating income margin was 25.8 pct versus 30.0 pct in the yr - earlier quarter ,
and AT&T ’s wireless EBITDA service allowance was 39.0 per centum , compare with 44.5 percent in the
first quarter of 2010 . Without customer migration costs from the Alltel and Centennial fusion , service
margin would have been 40.5 percentage . ( Earnings Before Interest Taxes Depreciation and Amortization military service tolerance is net before interest , taxis ,
depreciation and amortisation , divide by total service taxation . ) First - stern wireless run
disbursal totaled $ 11.4 billion , up 16.8 pct versus the year - other tail , and radio operating
income was $ 3.9 billion , down 5.3 percent year over year .
Wireline Operational Highlights
AT&T ’s first - one-fourth wireline solvent were highlight by continued growth in consumer revenues ,
sustained ontogeny in revenues from strategic business service and solid cost management . Highlights
include :
Growth in Wireline Consumer Revenues Continues . Driven by forte in IP data services , tax revenue
from residential customers totaled $ 5.3 billion in the first quarter , up 0.5 pct year over year , the
third consecutive quarter of year - over - year growing .
in service . In the first quarter , the AT&T atomic number 92 - verse High Speed Internet attach rate continued to race above
make for customers was $ 168 , up 14.3 percent year over year .
AT&T ’s U - rhyme deployment now reaches 28 million keep units . Companywide insight of eligible
living units is 15.3 percent , and across areas marketed to for 30 months or more , overall incursion
satellite customers , make 5.1 million at the end of the fourth , representing 20.6 per centum of
households served .
Wireline Broadband Growth Remains warm . drive by strength in AT&T U - verse gamy Speed
net military service and standalone broadband , AT&T posted a 175,000 final gain in wireline broadband
connection . About two - thirds of consumer have a broadband plan of 3 Mbps or higher .
IP Data Growth Transforms Consumer . Increased AT&T U - verse penetration and a significant
revenues from residential customers ( broadband , U - poesy goggle box and U - verse Voice ) . IP gross now
defend 46.9 pct of total wireline consumer revenue , up from 37.4 pct in the first quarter of
2010 .
4
Growth in Revenues Per Household . Wireline revenue per household serve increase 6.5 pct
versus the twelvemonth - earlier first quarter and were up 1.4 percent consecutive ( modal revenue per
family is full consumer wireline revenue divided by the medium monthly family in service ) ,
driven by AT&T U - verse service . This marked AT&T ’s 13th consecutive quarter with year - over - year
ontogeny in wireline consumer tax revenue per family .
Consumer Connection Trends . In the first fourth part , AT&T post a decline in total consumer revenue
connections due in the first place to expected declines in traditional voice access lines , consistent with all-inclusive
diligence trends and somewhat offset by increment in U - verse TV , broadband and VoIP ( Voice over
Internet Protocol ) link . AT&T U - verse line Voice connections increase by 181,000 in the quarter
and 716,000 over the past four quarters . Total consumer revenue connections at the end of the
first fourth were 43.1 million , compared with 45.0 million at the end of the first quarter of 2010 and
43.4 million at the end of the 4th quartern of 2010 .
secure Growth in Strategic Business Services in More than Two age . Revenues from new-
generation capabilities that lead AT&T ’s most innovative business solution – including Ethernet ,
VPNs , hosting , IP conferencing and program program services – grew 18.8 percentage versus the year - early
quarter , their strongest outgrowth in more than two years , continuing AT&T ’s strong trends in this category .
full business gross were $ 9.3 billion , a decline of 4.5 percent versus the year - earlier quarter
and down 2.0 percent consecutive , reflecting economic impuissance in voice and bequest data production
and the third - quarter 2010 sales event of the company ’s Japan assets . When normalized for the Japan sales agreement ,
total business enterprise revenues refuse 3.6 percent , about the same rate as normalize answer for the fourth
one-fourth of 2010 and improve from the year - ago quarter . Business service revenues , which omit
CPE , declined 4.4 percent year over year and were down slightly consecutive .
outgrowth in Business IP Revenues . Total business IP information revenues grew 8.5 percent versus the year-
before first fourth , led by ontogeny in VPN receipts . More than 70 percent of AT&T ’s frame customers
have made the transition to IP - based solution , which allow them to well add managed services such
as connection surety , cloud services and IP conferencing on top of their infrastructures . Total business
data tax income maturation was 0.3 pct when compared to a year earlier .
Wireline Operating Expenses Down 2.7 Percent yr Over Year . AT&T ’s first - quarter wireline
engage income leeway was 11.5 pct , down slightly compared to 12.0 pct in the year-
earlier fourth and 13.0 percent in the fourth fourth part of 2010 . Improved consumer revenue trends and
carrying out of cost initiatives helped to partly offset declines in voice revenue and storm - related costs
in the West . First - fourth entire wireline revenues were $ 15.0 billion , down 3.2 percent versus the year-
earlier after part . First - quarter wireline operating expenses were $ 13.2 billion , down 2.7 percentage versus
the first quarter of 2010 and up 0.4 percent consecutive . Wireline operating income add together $ 1.7 billion ,
compared to $ 1.9 billion in the first one-fourth of 2010 and $ 2.0 billion in the fourth twenty-five percent .
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