AT&T (T) Comes Up Light

October 23, 2007 by Douglas A. McIntyre

AT&T (T) reported third-quarter revenues of $30.1 billion, up from $15.6 billion in the year-earlier quarter, prior to its Dec. 29, 2006 acquisition of BellSouth Corporation and the accompanying consolidation of wireless results.

In addition to reported results, to provide a further basis for comparison, AT&T provides pro forma results, which combine revenues from AT&T, BellSouth and Cingular Wireless consistently for all periods. On this basis, AT&T’s third-quarter 2007 revenues totaled $30.3 billion, up 3.2 percent versus results for the year-earlier quarter.

AT&Ts reported net income for the third quarter totaled $3.1 billion compared with $2.2 billion in the year-earlier quarter. Reported earnings per diluted share totaled $0.50 versus $0.56 in the third quarter of 2006.

The company had a net gain of 2.0 million wireless subscribers, the highest third-quarter subscriber increase in the companys history.

AT&Ts wireless revenues totaled $10.9 billion, up 14.4 percent from the year-earlier quarter

At the end of the third quarter, subscribers to AT&T U-verse, the companys next-generation, IP-based video service, totaled 126,000, up from 51,000 three months earlier. Weekly install rates in the final weeks of the quarter approached 10,000, up from approximately 5,500 three months earlier.

Organic growth was merely OK. The stock is up slightly before the bell.

Douglas A. McIntyre