We've been waiting for this one, the first indicator of the mythical Verizon iPhone's impact on the fortunes of the formerly exclusive Applephone carrier, AT&T. As it turns out, business is rolling along as usual over on the blue team, where AT&T spent Q1 2011 activating a total of 3.6 million iPhones, a nice round million more than the same period last year. Also interesting is AT&T's note that somewhere around 40 percent of its smartphone sales come from Android, BlackBerry and Windows Phone 7 devices, leaving the iPhone to account for the remaining 60-ish percent. Taken as a whole, that group totaled up 5.5 million sales in the quarter, a new best for AT&T in the first three months of the year, and the smartphone segment is now said to account for 46.2 percent of the company's postpaid user base. Jump past the break for more details in AT&T's press release.
10.2 Percent Wireless Revenue Growth, Record Net Adds and Smartphone Sales Highlight AT&T's First-Quarter Results
Dallas, Texas, April 20, 2011
$0.57 diluted EPS, compared to $0.41 diluted EPS, and $0.58 per diluted share when excluding significant items, in first quarter of 2010
Consolidated revenues of $31.2 billion in the first quarter, up more than $700 million, or 2.3 percent, versus the year-earlier period
10.2 percent growth in wireless revenues, with an 8.6 percent increase in wireless service revenues
Best-ever first-quarter increase in total wireless subscribers, up 2.0 million to reach 97.5 million subscribers in service, with gains in every category
Best-ever first-quarter smartphone sales of more than 5.5 million
iPhone activations increased nearly 1 million year over year to 3.6 million, with 23 percent of subscribers new to AT&T; iPhone subscriber churn unchanged year over year
Best-ever first-quarter connected device net adds of 1.3 million
Branded computing subscribers (includes tablets, aircards and other data-only devices) up 421,000, doubling since the first quarter of 2010 to reach 3.4 million
23.9 percent growth in wireless data revenues, up almost $1 billion versus the year-earlier quarter
Postpaid subscriber ARPU (average monthly revenues per subscriber) up 2.4 percent to $63.39, the ninth consecutive quarter with a year-over-year increase
Postpaid churn stable excluding the impacts of the Alltel and Centennial integration
Third consecutive quarter of year-over-year growth in wireline consumer revenues, driven by AT&T U-verse® services
218,000 net gain in AT&T U-verse TV subscribers to reach 3.2 million in service, with continued high broadband and voice attach rates
26.1 percent growth in wireline consumer IP data revenues, driven by AT&T U-verse expansion
175,000 net gain in wireline broadband connections
Strategic business services revenues continue to increase, up 18.8 percent year over year, the best performance in more than two years
Note: AT&T's first-quarter earnings conference call will be broadcast live via the Internet at 10 a.m. ET on Wednesday, April 20, 2011, at www.att.com/investor.relations.
AT&T Inc. (NYSE:T) today reported first-quarter results, highlighted by continued robust mobile broadband growth with record first-quarter smartphone sales and a two-fold year-over-year increase in branded computing subscribers.
"We delivered another robust mobile broadband growth quarter for a very solid start to the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We posted double-digit wireless revenue growth, and we set new first-quarter records in total net adds, connected device net adds and smartphone sales. Growth in tablets and other branded computing subscribers also continues to be strong.
"Mobile broadband networks are driving unprecedented growth and innovation, and AT&T is playing a leading role in bringing these benefits to customers," Stephenson said. "That's why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies' spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers' network experience as volumes continue to grow."
First-Quarter Financial Results
For the quarter ended March 31, 2011, AT&T's consolidated revenues totaled $31.2 billion, up more than $700 million, or 2.3 percent, versus the year-earlier quarter, marking the company's fifth consecutive quarter with a year-over-year revenue increase.
Compared with results for the first quarter of 2010, operating expenses were $25.4 billion versus $24.6 billion; operating income was $5.8 billion, down from $6.0 billion; and AT&T's operating income margin was 18.6 percent, compared to 19.6 percent.
First-quarter 2011 net income attributable to AT&T totaled $3.4 billion, or $0.57 per diluted share. These results compare with reported net income attributable to AT&T of $2.5 billion, or $0.41 per diluted share, in the first quarter of 2010. Excluding 2010 significant items, earnings per share for the first quarter of 2011 was stable with earnings per share of $0.58 per diluted share in the year-ago first quarter.
First-quarter 2011 cash from operating activities totaled $7.7 billion, and capital expenditures totaled $4.2 billion. Free cash flow - cash from operating activities minus capital expenditures - totaled $3.6 billion.
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