Menu
Wireless and broadband fuel sales growth for AT&T

Wireless and broadband fuel sales growth for AT&T

Net earnings remain flat, however, even as the company makes gains in wireless subscribers

Gains from its broadband and wireless businesses have fueled AT&T's best revenue growth in more than two years.

Total wireless revenue, which includes equipment sales, was up 7.0 percent from the first quarter a year earlier, to US$17.9 billion, AT&T said Tuesday. Total wireless subscribers increased by just over a million.

Wireline revenue for the quarter, which ended March 31, was $14.6 billion, down 0.4 percent. The good news for AT&T, though, was that revenue from its U-verse broadband business increased 29.0 percent year over year.

The gains helped drive AT&T's overall revenue to $32.5 billion, up 3.6 percent from a year earlier. That was the company's biggest year-over-year sales increase in two years, AT&T noted.

Net income was $3.7 billion, roughly equal to its profit a year ago. Excluding one-time items, earnings per share were $0.71, compared to $0.64 in the year-ago quarter.

Tepid economic growth and competition in both its mobile and traditional wireline markets are bound to put pressure on AT&T's growth, analysts said.

"We continue to believe the wireline business remains challenged while wireless competition -- and the company's response to it -- will limit wireless service revenue growth," said Canaccord Genuity analyst Greg Miller in a research note before AT&T issued its earnings.

But AT&T is striving to branch out in other areas, which is why its U-verse unit is being closely watched.

On Monday, AT&T said it might roll out 1Gbps fiber-optic service in up to 21 new metropolitan areas including Atlanta, Chicago, Los Angeles, San Francisco and San Jose, California.

The plans could cause AT&T to butt heads with Google, which is targeting some of the same cities with its fiber broadband service.

The possible deployments by AT&T depend on discussions with local leaders and groups on ways to roll out the ultra-fast broadband service, the company said.

The rollout of its U-verse broadband with GigaPower service, meanwhile, will also include television service. Before Monday's announcement, AT&T had unveiled plans to build ultra-fast broadband in Austin and Dallas in Texas, and in Raleigh-Durham and Winston-Salem, North Carolina.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationat&tfinancial results

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments