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AT&T sales up 2.2%, profits improve in Q3
2013-10-24 08:10:00| Telecompaper Headlines
(Telecompaper) AT&T reported third-quarter sales up 2.2 percent to USD 32.2 billion, led by strong customer growth in mobile and its U-verse home services. Operating profit increased to USD 6.2 billion from USD 6.0 billion a year ago, and the margin was unchanged at 19.2 percent. Net profit increased to USD 3.8 billion or 72 cents a share, from USD 3.6 billion or 63 cents a share, thanks in part to tax benefits and a gain on the sale of spectrum. Excluding the one-time items, EPS rose 6.5 percent. After capex of USD 6.2 billion, the operator generated cash flow of USD 3.2 billion. It also spent USD 1.9 billion on share repurchases in the period. In the mobile market, AT&T added a net 989,000 new customers in the three months, and service revenues rose 3.7 percent year-on-year to USD 15.7 billion. Growth was led by a 17.5 percent rise in data revenues, with 75 percent of AT&T's postpaid customers now using smartphones. In the fixed-line market, AT&T grew residential revenues 2.4 percent to USD 5.6 billion, while business revenues fell 2.6 percent to USD 8.8 billion. Wireline operating profit was down 13.7 percent to USD 1.5 billion, on extra costs for growth in customer numbers and the Project VIP to expand access to new services. U-verse gained 265,000 new TV customers in the quarter for a total 5.3 million, and the internet base rose by 655,000 to 9.7 million, not quite offsetting the loss of DSL customers.
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Category:Telecommunications