US mobile operator AT&T Wireless has announced an 89% fall in Q2 net income compared to 2001, and has also said that it expects to add 20% fewer customers this year than it had originally expected. The company’s shares were down 10% by 1PM Wednesday.
The fall in profits from $229 million to $19 million was expected – indeed, AT&T Wireless surpassed Wall Street expectations by a penny a share. Revenues were up from $3.38 billion to $3.91 billion. However, the company’s 417,000 new customers fell short of the expected 550,000 figure.
AT&T Wireless blamed a general industry slowdown for the subscriber shortfall, combined with fiercer competition and specific problems with its joint venture with bankrupt WorldCom. The company expects total net new subscribers this year to be between 2 and 2.2 million, compared with a previous estimate of 2.5 million.