AT&T has reported its earnings for the second quarter of 2012, with its total operating revenue growing marginally to $31.5 billion, and its net profit increasing 8.4% to almost $4 billion.
Its wireless division accounted for most of its revenue, around $14.8 billion, while data and voice services came in next at $7.9 billion and $5.7 billion respectively. However, its operating and net profit margins have increased quite a bit since last year.
It ended the quarter with close to $2.15 billion in cash and cash equivalents and current debt of around $3.4 billion.
Its customer metrics seem to have improved quite a bit, with postpaid, prepaid and total wireless churn rates at their best-ever levels yet. It added close to 1.3 million new net customers this quarter, with 320,000 postpaid net additions.
AT&T sold around 5.1 million smartphones in Q2, and smartphones accounted for close to 77% of all postpaid device sales. Since AT&T generates a much higher ARPU from smartphone users, this bodes well for its future earnings as well.
It activated around 3.7 million iPhones last quarter, with 22% of the subscribers being new to the network.
Randall Stephenson, AT&T’s Chairman and CEO said:
“We executed well across the business and posted another strong quarter with growing revenues, expanding margins and double-digit earnings growth. Our mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better. And most impressive, with this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network. All of these things add to our confidence and enthusiasm looking ahead.”
via SEC – AT&T