Sales of Android and other non-iPhone smartphones were almost half of 4.8 million smartphone sales
The net income of telecom company AT&T has gone down in the third quarter 2011, totalling $3.6bn ($0.61 per diluted share), compared to $12.3bn ($2.07 per diluted share), in Q3 2010.
However, the company said that last year’s net income included one-time gains from a tax settlement and the sale of Sterling Commerce. Excluding one-time gains, earnings were $0.54 in the third quarter a year ago.
For the quarter ended 30 September 2011, AT&T’s consolidated revenues totalled $31.5bn, down $103m, or 0.3%, versus the year-earlier quarter. Compared with Q3 2010 results, AT&T’s operating income margin was 19.8%, compared to 17.2%; operating expenses were $25.2bn versus $26.2bn; and operating income was $6.2bn, up from $5.4bn.
Q3 2011 cash from operating activities totalled $10.4bn, and capital expenditures totalled $5.3 bn. Free cash flow totalled $5.1bn.
Compared with results for the first nine months of 2010, year to date through the third quarter, cash from operating activities totalled $27.2bn versus $25.4bn; capital expenditures totalled $14.7bn compared to $13.7bn; and free cash flow totalled $12.4bn versus $11.6bn.
The company reported strong mobile broadband growth and sequential growth in wireline business revenues. There was 18% growth in wireless data revenues, up $857m versus the year-earlier quarter. This was the fifth consecutive quarter of year-over-year growth in wireline consumer revenues, driven by AT&T U-verse services.
It said that the quarter saw 2.1 million increase in total wireless subscribers to pass 100 million subscribers, with gains in every customer category. The company also reported first sequential growth in wireline business revenues in three years and best wireless EBITDA service margin performance in six quarters.
Continued growth in strategic business services revenues, up 19.3% year over year. The company reported 19.6% growth in wireline consumer Internet Protocol (IP) data revenues to reach half of consumer revenues, driven by continued AT&T U-verse expansion
Sales of Android and other non-iPhone smartphones were almost half of 4.8 million smartphone sales in the quarter, while branded computing subscribers, including tablets, aircards, and MiFi devices, were up 505,000, to reach 4.5 million.
The company said that it saw a 176,000 net gain in AT&T U-verse TV subscribers to reach 3.6 million in service, with continued high broadband and voice attach rates
AT&T chairman and chief executive officer Randall Stephenson said mobile broadband growth continues to be robust, execution was strong across the business, and we delivered another solid quarter.
"Smartphones, connected devices and tablets all posted impressive gains. Our first LTE 4G markets are up and running with terrific speeds. And we continue to work toward a successful completion of our planned T-Mobile USA merger. The next waves in the mobile Internet revolution represent tremendous growth potential, and we are laying the groundwork required for that future," Stephenson said.