AT&T Pumps IPTV, Wireless in 2nd Quarter7/25/2009 2:00 AM Eastern
AT&T's U-verse TV service continued to pack on pounds, with the telco adding 248,000 net subscribers in the second quarter, and the company delivered strong wireless results — but it also lost 921,000 residential voice lines in the period.
The telco stood at 1.577 million U-verse TV subs and 2.210 million satellite video subscribers as of June 30. Chief financial officer Rick Lindner said on a conference call with analysts that U-verse services are now approaching an annual run rate of $2 billion in revenue.
Lindner said the company added more than 100,000 DirecTV subscribers in the quarter. However, AT&T reported a net increase of only 5,000 satellite video customers sequentially — suggesting the telco saw at least 95,000 Dish customers drop their service in the period. AT&T's agreement with Dish expired Jan. 31, after AT&T decided to exclusively offer DirecTV in areas it does not provide its own U-verse IPTV service.
On the wireless side, AT&T reported 1.4 million net additions overall, to reach 79.6 million subscribers, and activated 2.4 million Apple iPhone devices. AT&T's total DSL connections were 13.454 million as of June 30, up 6.9% versus 12.581 million a year ago.
Overall, AT&T reported quarterly revenue of $30.7 billion — down 0.5% versus a year ago — while net income fell 15%, to $3.2 billion. “AT&T's report offers few signs of recovery in the broader economy, but reveals surprising nimbleness with respect to cost reduction, especially on the wireline side,” Sanford Bernstein analyst Craig Moffett wrote in a note, who added that its wireless results “were nothing short of spectacular.”