It ’s peradventure not that big a surprise , render thehuge number of iPhonesApple move this past quarter , but it ’s still a large figure : AT&T activated 5.2 million iPhones this summertime . That ’s nearly 70 % of their entire integrated equipment activations .
https://gizmodo.com/apple-sells-14-1-million-iphones-and-more-ipads-than-ma-5667042
RECORD WIRELESS SALES , STRONG REVENUE AND EARNINGS
GROWTH HIGHLIGHT AT&T ’S THIRD - QUARTER solvent
DALLAS , Oct. 21 , 2010 – AT&T Inc. ( NYSE : T ) today reported third - quarter event highlighted by
growth in consolidated revenues , strong cut-rate sale of structured devices , gains in IP - based and strategic
patronage services , and disciplined execution on cost enterprisingness .
“ This was a terrific wandering broadband fourth part , ” say Randall Stephenson , AT&T chairwoman and chief
executive officer . “ A record number of customer signed new two - class contract and integrated equipment
sales outpaced our previous upright by a wide margin . Wireless receipts continue to grow , churn is
reaching record humiliated point , and postpaid ARPU increased for the 7th true one-quarter .
“ These trends add to our momentum and self-confidence , ” Stephenson said . “ roving broadband is the
industriousness ’s most sinewy growth equipment driver , and demand is in its early degree in both the consumer and
$ 2.08 dilute EPS compared to $ 0.54 dilute EPS in the third quarter of 2009 ; EPS of
$ 0.55 , leave out $ 1.53 in one - clip gains from a antecedently break tax liquidation and
the sale of Sterling Commerce
Consolidated revenues from continue operations of $ 31.6 billion in the third quarter , up
$ 847 million , or 2.8 per centum , versus the year - early catamenia
11.4 percentage growth in wireless revenues , with a 10.5 percent increase in wireless
service receipts
Record radio intensity , with more than 8 million prepaid integrated gimmick sales
Postpaid endorser ARPU ( fair monthly revenue per endorser ) up 2.0 percentage to
$ 62.84 , the seventh sequent fourth with a year - over - yr growth
1.32 per centum total wireless churn , best - ever third - quarter
30.5 percent ontogeny in wireless data revenues , up $ 1.1 billion versus the year - early
fourth part
First twelvemonth - over - year growth in wireline consumer receipts in more than two years
30.0 percent growth in consumer IP data revenues , driven by AT&T U - verse ® expansion
236,000 net gain in AT&T U - rhyme television set reader to reach 2.7 million in servicing , with
continue high broadband and voice attach rates
148,000 net increase in wireline broadband connections
15.4 percent ontogenesis in revenues from strategic business services such as Ethernet ,
Virtual Private Networks ( VPNs ) , host and app services
business segments . AT&T is well positioned for the opportunities ahead . ”
Third - Quarter Financial resultant role
( On August 27 , 2010 , AT&T completed its sale of Sterling Commerce to IBM for approximately
$ 1.4 billion in hard cash . Third - quarter comparisons are based on results from carry on operations , which
turf out results from Sterling Commerce in all flow . )
For the fourth ended September 30 , 2010 , AT&T ’s consolidated revenues add together $ 31.6 billion , up
$ 847 million , or 2.8 percent , versus the twelvemonth - earlier quarter , score the caller ’s third consecutive
quarter with a year - over - year revenue increase . Versus the 2d quarter of this class , consolidated
revenues were up $ 773 million , or 2.5 pct .
Compared with results for the third tail of 2009 , operating expenses were $ 26.1 billion versus
$ 25.4 billion ; operating income was $ 5.5 billion , up from $ 5.4 billion ; and AT&T ’s operating income
margin was stable at 17.3 percent , compare to 17.5 percent .
Third - quarter 2010 final income attributable to AT&T totaled $ 12.3 billion , or $ 2.08 per dilute part ,
including $ 1.53 in one - sentence gain from a previously disclosed revenue enhancement village and the sales agreement of Sterling
Commerce . These results liken with reported net income attributable to AT&T of $ 3.2 billion ,
or $ 0.54 per diluted share , in the third fourth of 2009 . Excluding one - time addition , net profit maturate
3.8 percent to $ 0.55 per dilute share , compared to $ 0.53 per diluted share in the year - earlier quarter .
Third - poop 2010 John Cash from operating natural process add up $ 9.5 billion ; chapiter expenditures tally
$ 5.5 billion , include a about 64 per centum step-up in wireless - bear on upper-case letter investment funds versus the
year - earlier quarter , as AT&T aggressively deploys next - generation wireless broadband networks .
Free cash stream – John Cash from operating activities minus uppercase expenditures – sum up $ 4.0 billion .
liken with result for the first three quarter of 2009 , yr to engagement through the third quarter ,
hard currency from operating action sum up $ 25.4 billion versus $ 25.4 billion ; capital consumption totaled
$ 13.7 billion versus $ 11.6 billion ; and free cash flow totaled $ 11.6 billion versus $ 13.9 billion .
Wireless Operational Highlights
Led by a record twenty-five percent of integrated gadget sales , AT&T delivered self-colored third - quarter growth in its
wireless business , including double - dactyl wireless revenue gains . Highlights included :
2.6 million , to reach 92.8 million in service . Third - twenty-five percent net add growth ponder rapid adoption of
eReaders , security system , fleet management and global location systems in both the business
and consumer markets . Retail mesh adds for the quartern include postpaid net income adds of 745,000 and
prepaid connection attention deficit disorder of 321,000 . machine-accessible twist cyberspace adds were 1.2 million , and reseller net append were
406,000 .
Total Churn at Record Third - Quarter Level . Postpaid churn was 1.14 percent – agree the third-
quarter record fructify in 2009 – and full butter churn reached a best - ever third - quarter level of 1.32 per centum
versus 1.42 percent in the third after part of 2009 .
Record Integrated machine Sales . More than 8 million postpaid desegregate devices were activated
in the third quarter , the most quarterly activations ever . More than 80 percent of postpaid sale were
integrate devices . ( Integrated devices are French telephone with QWERTY or virtual keyboard in plus to
voice functionality and are a cardinal driver of wireless datum utilisation . )
equipment , up from 42.0 pct a year to begin with . The average ARPU for integrated equipment on AT&T ’s
web is 1.7 time that of the company ’s non - integrated gimmick understructure . More than 80 percent of
plans go on to race below the company ’s postpaid base .
AT&T ’s third - quarter integrated machine development included 5.2 million iPhone activations , the most iPhone
activation ever in a quarter . This is 62 pct more than the old quarterly record of 3.2 million
activated in the second quarter of 2010 . just about 24 percent of those activations were for
customers who were unexampled to AT&T.
Data Revenue Growth of 30.5 percentage . Wireless data revenues – from message , Internet admission ,
memory access to applications and related services – increased $ 1.1 billion , or 30.5 percent , from the year-
over the past year . Versus the yr - earlier quarter , total school text messages transport on the AT&T meshing
increased about 34 percent to 161 billion and multimedia system substance more than doubled to 2.8 billion .
self-coloured Postpaid ARPU Growth . Driven by strong information development , prepaid contributor ARPU increased
2.0 per centum versus the year - earlier quarter to $ 62.84 . This marked the 7th consecutive quarter
AT&T has posted a year - over - year addition in postpaid ARPU . Postpaid data ARPU arrive at $ 22.02 ,
late vogue , with double - digit growth , chew over addition in both voice and data .
Double - Digit Wireless Revenue Growth . Wireless service receipts increase 10.5 percent to
$ 13.7 billion in the third quarter . Total wireless receipts , which admit equipment sales , were up
11.4 percent year over yr to $ 15.2 billion and increased 6.6 percent from the 2nd quarter of 2010 .
Wireless Margins . Wireless margins were touch on by increase operating costs link up with
the caller ’s record tail for integrate machine activation . scatty the costs associated with
these additional activation , service margins would have been similar to the anterior one-fourth of this year .
operable execution and further emergence in the company ’s high - quality integrate gimmick indorser
helped partially offset these costs . AT&T ’s wireless operate on income security deposit was 23.1 percent versus
25.6 percent in the class - early quarter , and AT&T ’s wireless OIBDA overhaul tolerance was 37.6 percent ,
compare to 40.3 percent in the third quarter of 2009 ( OIBDA help margin is operate income
before depreciation and amortisation , divided by entire serving revenues ) . Third - stern radio set
operating expenses totaled $ 11.7 billion , up 15.2 pct versus the year - earlier quarter , and radio receiver
lock income was $ 3.5 billion , up 0.2 per centum class over year .
Wireline Operational Highlights
AT&T ’s third - quarter wireline results were highlight by improving movement in revenues admit the first
yr - over - year growth in consumer revenues in more than two age , further expansion in AT&T
U - verse services , sustained growth in revenue from strategic business services and solid toll
management . highlight let in :
Growth in Wireline Consumer Revenues . Driven by strength in IP data point service , in the third quarter ,
entire revenue from residential customer add up $ 5.3 billion , up 0.2 pct from the third quarter of
2009 , the first yr - over - class growth in more than two years .
increased by 236,000 in the tail to get through 2.7 million . In the third quarter , the AT&T U - verse in high spirits
stop number Internet attach charge per unit bear on to feed above 90 pct , and nearly 60 percent of indorser
quad - looseness pick from AT&T. ARPU for U - poetry treble - play customers was about $ 160 .
AT&T ’s U - rhyme deployment now give more than 26 million living unit . Companywide incursion
of eligible livelihood units is 14.1 percent , and across areas marketed to for 30 months or more , overall
incursion is more than 22 percent . AT&T ’s full video ratifier , which combine the ship’s company ’s
atomic number 92 - verse and bundled orbiter customers , reached 4.7 million at the end of the twenty-five percent , representing
18.8 percent of households served .
Internet religious service , AT&T posted a 148,000 final gain in wireline broadband connective .
U - poetry Revenues outdo $ 1 Billion . Increased AT&T U - poetry penetration drove 30.0 percent year-
over - year growth in consumer IP revenues ( broadband , U - poetry television and U - poetry Voice ) . U - rhyme
continue to drive a transformation in AT&T ’s consumer business concern , mull by the fact that consumer
IP revenue now represent 42.6 percentage of AT&T ’s wireline consumer revenues , up from 32.8 percent
in the twelvemonth - earlier quarter . In the third one-fourth , AT&T U - poetry revenues were $ 1.1 billion , 84.5 pct
higher than in the third quarter of 2009 .
Consumer Connection Trends . In the third quarter , AT&T post a decline in total consumer revenue
connection due primarily to require declines in traditional voice access lines , partially cancel by
increases in broadband , U - poesy telly and VoIP ( Voice over Internet Protocol ) connections . combine
wireline consumer TV and broadband connections increased by 343,000 in the third quarter and
1.3 million over the retiring four stern . AT&T U - verse Voice connections increased by 166,000 in the
quarter and 759,000 over the preceding four quarter . full consumer taxation connection at the ending of the
third quarter were 43.7 million , compare with 45.7 million at the death of the third tail of 2009 and
44.3 million at the ending of the 2d quarter of 2010 .
Further sign of Stabilization in Business Markets . AT&T posted its good year - over - twelvemonth business
revenue comparisons in six quarter – reflect carry on solid sales event carrying into action and stay on
betterment in primal economical metrics . entire business concern revenues were $ 9.5 billion , a decline of
3.9 percentage versus the year - earlier quarter . job service revenue , which exclude CPE , correct
3.7 pct year over year and decreased slenderly sequentially , down 1.3 pct .
Business IP Revenues go along Growth . Business IP data revenues grew 8.0 per centum overall ,
conduce by outgrowth in VPN revenues . Global Enterprise Solutions IP data revenues grew 9.7 per centum .
Approximately 70 percent of AT&T ’s build customers have made the transition to IP - based solution ,
which allows them to well add bring off services such as electronic connection certificate , cloud Robert William Service and IP
conferencing on top of their infrastructures .
15.4 Percent ontogenesis in Strategic Business Services Revenues . Revenues from new - multiplication
potentiality that lead AT&T ’s most advanced business enterprise result – including Ethernet , VPNs , hosting ,
IP conferencing and program service – grew 15.4 per centum versus the year - earlier quarter and were
up 4.5 percent from the second after part of 2010 , stay on AT&T ’s strong trends in this category .
Wireline final result . lead by improved consumer and line of work customer trend , total wireline revenues
post their minor year - over - year fall in six quarters , down 3.0 per centum , and down slightly
sequentially . Third - one-quarter gross in AT&T ’s wireline segment add together $ 15.3 billion versus
$ 15.7 billion in the yr - early one-quarter . Third - after part wireline operating expenses were $ 13.4 billion ,
down 3.9 per centum versus the third tail of 2009 and down 0.6 percent sequentially . Wireline
operate income add together $ 1.8 billion , compared to $ 1.8 billion in the third poop of 2009 and
$ 1.9 billion in the 2d quartern of 2010 . AT&T ’s third - quarter wireline operating income margin was
12.0 percent , compared with 11.2 percent in the year - earlier fourth and 12.2 percent in the second
quarter of 2010 .
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