Menu
Share
Share this story
Close X
 
Switch to Desktop Site

AT&T earnings solid despite loss of iPhone rights

The company surpassed Wall Street expectations and posted earnings of 57 cents a share in first-quarter subscriber growth

View video

In this April 15, 2011 photo, AT&T Go phones are shown at a Best Buy store in San Francisco. AT&T subscribers are still buying iPhones, but with Verizon now selling the phone too, it seems to have lost its power to draw new subscribers to AT&T.

Jeff Chiu / AP

View photo

By CNBC.com

AT&T posted record first-quarter subscriber growth, despite giving up exclusive US rights to sell the iPhone.

About these ads

The company posted earnings of 57 cents a share, narrowly topping Wall Street expectations, on net income of $3.4 billion. That compares to 41 cents a share and $2.5 billion from the same quarter in 2010.

Revenue rose 2.3 percent to $31.2 billion.

AT&T shares were up about 2 percent in premarket trading.

"We delivered another robust mobile broadband growth quarter for a very solid start to the year," Randall Stephenson, AT&T chairman and chief executive officer, said in a statement.

Though AT&T now must share rights to the Apple iPhone with Verizon, it saw a 10.2 percent growth in revenues, including an 8.6 percent increase in wireless service revenues.

It marked the company's best-ever first quarter increase in total subscribers, which rose 2 million to 97.5 million total.

The company also saw its best first-quarter smartphone sales, with more than 5.5 million units sold, and an increase of one million annualized in iPhone activations.


Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.