• AT&T Beats Analyst Expectations with 4Q Profit

    Despite impressive subscriber growth from rival US telecoms, AT&T managed to post a profit of $6.9 billion on $33.6 billion in revenue for the fourth quarter of 2013. In a recently released earnings statement, AT&T cites record-low post-paid churn rates and smartphone sales gains as drivers for the companyís $33.6 billion in revenue, which represents a 2% rise from $33.2 billion in 2012. Revenue from wireless operations grew 4.8% year-to-year to hit $15.7 billion, while data services revenue was up 16.8% at $5.7 billion.

    The $6.9 billion in profit, or $1.31 per share is a vast improvement from 2012ís loss of $3.9 billion or 68 cents per share. Excluding a pensions0related gain of $7.6 billion, taxes and other expenses, adjusted earnings came in at 53 cents per share. This number beat analyst expectations of 51 cents for the quarter according to the Associated Press.

    AT&T reported a gain of 809,000 net wireless subscribers for the December quarter, 566,000 of which were on more lucrative post-paid contracts. Broken down further, 299,000 of the post-paid net adds were smartphones. The company also saw fourth-quarter post-paid churn at 1.11%, down from 1.19 in the year ago period. When considering pre-paid subscribers, overall churn was at 1.43% compared to 1.42% in the year-ago quarter.

    The wireless carrier hit another record with smartphones, which ended up accounting for 93% of all phone sales during the fourth quarter. AT&T added 1.2 million post-paid smartphones to its user base, which now accounts for 77% post-paid phone subscribers. Growth in the sector is apparently slowing though as only 7.9 million smartphones were sold in the quarter, down from 10.2 million over the same period last year. Tablets were also a major factor in the carrierís performance as the company logged 440,000 net tablet adds over the quarter.

    Although it may seem like AT&Tís results are quite promising, it should be noted that the nationís largest carrier, Verizon, added 1.7 million subscribers in the fourth quarter. Smaller carriers such as T-Mobile are also continually nibbling away market share with lower-cost plans and incentives for switching carriers.

    Which carrier do you use?

    Source: ABCNews, AT&T (Press Release)
    This article was originally published in forum thread: AT&T Beats Analyst Expectations with 4Q Profit started by Akshay Masand View original post
    Comments 6 Comments
    1. plumoso's Avatar
      plumoso -
    1. nealh's Avatar
      nealh -
      AT&T. My experience with verizon was crappy compared to how AT&T has treated me
    1. WHUDS's Avatar
      WHUDS -
      Verizon would cost me way more, At&t has been pretty decent for most part
    1. wolverinemarky's Avatar
      wolverinemarky -
      Quote Originally Posted by plumoso View Post
      AT&T grandfathered unlimited data plan
    1. quidam_brujah's Avatar
      quidam_brujah -
      Take note, Apple: beat your financial expectations, but not outside analysts and suffer the consequences. It only took Motorola 15 years to learn that lesson. Start being humble and set expectation to be mediocre.
    1. Merthod's Avatar
      Merthod -
      So ATT is recommendable?
  • Connect With Us

  • Twitter Box

  • Facebook