AT&T Had a Prolific Summer

26th October, 2009 by Adina
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In terms of number of customers and financial results, AT&T had a hot summer and this was a pleasant surprise for the company. Some of the best results ever reached during summer quarters in the history of AT&T were obtained this year, when the company activated 3.2 million iPhones, a significant growth compared to the 2.4 million in the spring. Even if the iPhone 3GS was launched during the previous quarter, the statistics showed an explosion of the sales between July and September, with forty percent of the customers being new to the company, i.e. a more than 33 percent increase.

The average revenue per customer has grown by 3.8 percent year to year and the data revenue has reached 33.6 percent during the same period, because AT&T had not to subsidize Apple’s iPhone anymore. Wireless revenue went to $12.4 billion by climbing to 10 percent and profit has grown from 33.5 percent to 38.5 percent. This significant growth fully covered the iPhone discounts, according to the company’s reports.

In fact, Apple’s iPhone devices formed the majority of the 4.3 million 3G and QWERTY keyboard handsets sold during this period with a contribution of more than two million new customers, which made AT&T reach 81.6 million customers using cellular phones. There are 1.4 million per-month customers in these two million, the rest of them being prepaid customers. Customer turnover went from 1.69 percent to 1.43 percent, being 1.17 percent for per-month subscribers.

Losses due to global recession were minimized and earnings per share dropped with one cent only, reported to last year, being now 54 cents per share.

This unexpected growth of AT&T impacted on the market leader Verizon, drastically reducing the gap between the two companies in their subscriber bases. Even if Verizon recently acquired Alltel, their growth was less spectacular than what AT&T got. More than this, if Verizon is still having difficulties in finding a high-performance device to rely on, it will find itself in the position of loosing even more of its market quota in favour of AT&T.


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