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Wireless giant AT&T reported better-than-expected second quarter earnings this morning, even as revenue grew slightly below forecasts.The company said it earned net income of $3.9 billion, or $0.66 per share, during the period.
Sales during the three months ending in June advanced 0.3 per cent from the year-ago period to $31.58 billion, below consensus estimates for a $31.65 billion quarter.
AT&T’s wireless division continued to generate a significant portion of the company’s growth, with sales up 4.8 per cent to $16.4 billion.
“Our mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better,” AT&T Chief Executive Randall Stephenson said. “And most impressive, with this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network.”
AT&T added some 1.3 million wireless customers during the period, including 320,000 post-paid plans.
The Dallas, Texas, based telecommunications firm said it sold 5.1 million smartphones, a third of which were capable of using the company’s 4G network. However, that is a 9 per cent decline from a year earlier, when it moved 5.6 million of the devices.
AT&T activated 3.7 million iPhones in the quarter, slightly above the 3.6 million Apple devices it activated in the year-ago period.
Wireline continued to weigh on results, as revenues fell 0.8 per cent to $14.9 billion.