AT&T Q2 2009: IP services up, landline erosion continues

There were no major surprises in AT&T's Q2 09 earnings as the telco reported that consolidated second quarter revenues of $30.7 billion were down by 0.4 percent year-over-year, but up sequentially. AT&T's net income was $3.2 billion, while diluted earnings per share totaled $0.54 and cash from operating activities totaled $7.9 billion.  

Despite this slight revenue decline, AT&T saw increased momentum in its wireline business, as consumer broadband IP services (broadband data and U-Verse TV), business VPNs and VoIP services all saw growth. During the quarter, AT&T added 248,000 new U-Verse subscribers, a factor the telco attributes to the addition of new services such as U-Verse Total Home DVR, integrated voice and broadband service. Total video subscribers, including both its U-Verse and bundled satellite services, reached 3.8 million at the end of Q2 2009.

Another growth spot was consumer and business IP-based data services. The telco reported that total wireline IP data revenues, which were driven by U-Verse service expansion and business VPNS and VoIP, grew 5.2 percent to $6.6 billion. This growth was led by a 17 percent increase in IP-based service revenues.  

However compelling AT&T's gains were in its wireline consumer and business segments, the telco continues to see negative trends in total landline connections, which were down 13.4 percent during the quarter.

For more:
- here's the official release

Related article
AT&T profit, revenue slip in Q1

Suggested Articles

Verizon Business is cashing in on its deal to buy video conferencing company BlueJeans by launching the service in India with Bharti Airtel.

Itential announced a new set of tools designed to help service providers and enterprises automate their networking systems.

Charter Communications plans to participate in the RDOF, auction, making it the first cable operator to announce it's seeking RDOF funding.