AT&T has posted a Q2 loss of $12.7 billion on revenues of $12.1 billion. The revenue figure of $12.1 billion represents a fall of 8.7% from previous figures. The current quarter’s figures include goodwill and franchise impairment charges of $16.5 billion. These charges are related to a write down in the value of the company’s cable interests. AT&T also announced that it is expecting a revenue shortfall in Q3 that will be larger than the 6.1% recorded in the previous three months.
The company’s business unit experienced a fall in Q2 revenues of 3.8% to $6.7 billion. The unit saw a 12% decline in long distance voice revenue. The business unit experienced a growth in data, IP and managed services but expects revenue to shrink overall by 4-4.5% in this financial year.
AT&T’s consumer unit saw revenues fall by 21.8% to $2.9 billion. The company blamed the fall in revenues on consumers increasingly communicating over the Internet and by cellular phone. The consumer unit is expected to post a 25% fall in revenues during this financial year.
AT&T is hoping that its broadband operations will continue to build on the revenue growth it showed during Q2. The revenue gained from broadband operations rose 9.8% to $2.5 billion and is expected to achieve low double-digit growth over the coming period.