AT&T: Don’t Phone Home

AT&T (T) Q1 Thomson estimate revenue $29.52B.

Well, so much for the estimate.

AT&T’s first-quarter 2007 reported net income was $2.8 billion, up from $1.4 billion in the first quarter of 2006, and reported earnings per diluted share were $0.45, versus $0.37 in the year-earlier quarter. AT&T’s first-quarter 2007 consolidated revenues totaled $29.0 billion, versus a reported $15.8 billion in the year-earlier first quarter.

Versus first-quarter 2006 pro forma revenues of $28.9 billion, AT&T’s first-quarter 2007 revenues adjusted to exclude the effects of purchase accounting on directory revenues grew 1.7 percent to $29.4 billion. 

Double-digit wireless service revenue growth was strong. AT&T’s total wireless revenues grew 11.2 percent in the first quarter to $10.0 billion. AT&T’s wireless subscribers increased by 1.2 million in the first quarter to reach 62.2 million, up 6.4 million, or 11.5 percent, over the past year

And bundled services helped offset wireline loses. Growth in consumer connections, continued stability in regional consumer revenues. AT&T’s regional consumer connections — which combine retail access lines, high speed Internet and video connections — increased by 402,000 in the first quarter, as high speed Internet growth and video more than offset net declines in traditional access lines that were in line with recent quarters. Primary consumer lines across the 22 states where AT&T has its regional operations declined by 285,000 in the first quarter, compared with declines of 251,000 in the first quarter of 2006 and 331,000 in the fourth quarter of 2006.

AT&T’s video connections — including AT&T U-verse service and bundled satellite television service — increased by 187,000 in the first quarter, up from 111,000 total video net adds in the preceding quarter.

All in all, an OK quarter, but nothing to write home about.

Douglas A. McIntyre