AT&T's third quarter 2009 earnings present an all too familiar tale in the wireline industry. Third quarter revenues totaled $30.9 billion, net income attributable to AT&T was $3.2 billion, diluted earnings per share totaled $0.54 and cash from operating activities totaled $9.7 billion. Contributing to the loss was, once again, the inevitable decrease in voice and legacy data services, a trend AT&T is offsetting by ongoing growth of its wireless and IP-based wireline data and video services.
AT&T's consolidated revenues, however, increased 0.4 percent--the second quarter where it saw a sequential revenue increase. The ILEC says that consolidated revenues for 2009 will fall beneath 2008 results.
That's not to say that AT&T's wireline business is dead by any means. The service provider did see an uptick in IP-based wireline residential U-Verse and business services, which collectively grew 18.7 percent.
During the quarter, AT&T reported that it added 240,000 new U-Verse TV customers, which was an increase from the 232,000 it brought on during Q3 08. With this increase, AT&T now provides U-Verse TV to 1.8 million subscribers many of which also purchase broadband and voice.
Driven by new services such as Ethernet, Virtual Private Networks (VPNs), hosting and application services, AT&T saw business services grow 16.6 percent.
- see the earnings release here
- Morning Dallas News has this article
AT&T Q3 '09: Wireline revenues to take another hit
AT&T: U-Verse on track - Fiber to the X
AT&T comes to blows with Google again
AT&T targeting femto launch for this year