AT&T, the second-largest phone company in the United States, reported a substantial $6.68 billion net loss for the fourth quarter, primarily from the break-up fees incurred as a result of the company’s failed acquisition of T-Mobile USA. During the same period a year earlier, the company reported profit of $1.09 billion, or 18 cents a share. þþHowever, a wave of momentum from iPhone sales and new subscribers nudged AT&T’s revenue up 4 percent during the quarter, with sales rising to $32.5 billion from $31.4 billion a year ago. Analysts expected the company to report $31.95 billion in revenue. þþThe company added 717,000 post-paid wireless subscribers, the largest increase in five quarters, and a net total of 2.5 million wireless subscribers, which lifted the company’s base to 103.2 million wireless customers. AT&T also said it beat previous records for smartphone sales during the quarter, selling 7.6 million iPhones and 9.4 million smartphones over all. þþRick Franklin, an analyst with Edward Jones, said the report “sets AT&T up well for future wireless data growth and profitability.” þþAfter discounting charges from the $4 billion breakup fee paid in the wake of the T-Mobile USA bid, AT&T’s per-share profit was 42 cents; analysts expected 43 cents a share. þþThe company also beat results for Verizon, the country’s largest phone company, which said on Wednesday that it sold 4.2 million iPhones and 7.7 million smartphones during the same period. AT&T said that 76 percent of its overall revenue increase stemmed from the company’s growth in wireless, wireline data and services. þþ“We had a tremendous year in terms of execution, and we have excellent momentum across our growth platforms,” said Randall Stephenson, the chief executive of AT&T, in a statement. “This was a blowout quarter for smartphone sales.” þþ“Looking ahead, we start 2012 with the best visibility we’ve had in some time, and we’re well-positioned to deliver solid results,” Mr. Stephenson said. þþInvestors seemed initially disappointed by the results, with shares slipping 2.4 percent to $29.50 in premarket trading. þ
Source: NY Times
