AT&T adds 202,000 U-verse TV subs in Q2; revenue up, profits slip

AT&T (NYSE:T) today reported higher revenues (but slimmer profits) and continued growth in its U-verse TV subscriber rate in the second quarter.

The company reported consolidated revenues of $31.5 billion, up more than $680 million, or 2.2 percent, versus the year-earlier quarter. It was AT&T's sixth consecutive quarter with a year-over-year revenue increase and topped analyst estimates of $31.33 billion. The telco also topped analyst estimated selling price, barely, reporting net income of $3.6 billion, or 60 cents per diluted share. Analysts had lowered their expectation over the course of the quarter to 59 cents from 60 cents.

AT&T added some 5.6 million smartphones to its mobile network and said mobile revenue grew 9.5 percent to $15.6 billion.

The company said it added 202,000 customers to its U-verse TV service in the second quarter, bringing it to 3.4 million users overall. The additional subscribers also continued to drive AT&T U-verse High Speed Internet adoption, with the company saying it had a more than 90 percent attach rate, with 55 percent of new subs taking AT&T U-verse Voice as well.

ARPU for U-verse triple-play customers was $170, up 8.3 percent year-over-year.

"We are seeing encouraging signs in wireline revenues," said Chairman and CEO Randall Stephenson.

AT&T's U-verse deployment now reaches 29 million living units, the company reported, with overall penetration at 25 percent across areas marketed to for 36 months or more. AT&T's total video subscribers, which combine the company's U-verse and bundled satellite customers, reached 5.3 million at the end of the quarter, representing 21.5 percent of households served.

For more:
- see this Wall Street Journal article
- see this AT&T earnings release

Related articles:
AT&T Fourth Quarter Earnings highlights
AT&T (NYSE:T) Earnings Q3 2010
AT&T sees first ever $1B revenue quarter for U-verse
IPTV: Standing on the brink of explosive growth, and big earnings
For AT&T, U-verse saves landline segment's bacon

Suggested Articles

Contrary to what stark video subscriber losses suggest about the state of the U.S. pay TV industry, PwC said that pay TV subscribers increase in 2019.

AT&T-owned DirecTV is prepping another round of price increases that will kick in early next year for subscribers to its satellite television service.

Comcast/NBCUniversal is planning an investor day on January 16 to discuss details about its upcoming streaming service, Peacock.