T&T Q2 net tops estimates, revenues up slightly
NEW YORK, July 23 (Reuters) - AT&T Corp., the largest U.S. long distance carrier, on Thursday
posted better-than-expected second quarter profits and slightly improved revenues as growth in
business services, online ventures and wireless services was partially offset by a decline in the
consumer business.
Second quarter profits from continuing operations increased to 91 cents per diluted share, up 60
percent from 57 cents a year ago. Total revenue for the quarter edged up to $12.858 billion,
compared with $12.728 billion last year.
The second quarter results exclude after-tax charges of $1.694 billion, or $1.04 per share, relating
primarily to a voluntary retirement program that was accepted by about 15,300 AT&T management
employees.
Total revenue from business services increased $144 million, or 2.6 percent, while revenue from
consumer services decreased $218 million, or 3.7 percent. There was a 4.4 percent increase in
AT&T Corp.'s (T - news) total long-distance calling volumes.
Improvements in the business services sector was driven by double-digit growth in high-speed data
services such as frame relay, ATM, and high-speed private line services. AT&T said the failure of
its massive frame relay network in April did not materially affect earnings but reduced business
services revenue growth during the quarter.
Total revenue from wireless services rose $127 million, an increase of 11.4 percent. The total net
subscriber additions for the quarter were 325,000, up 19 percent compared with the second
quarter of 1997.
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