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

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