AT&T posts better-than-expected quarterly results
NEW YORK, Oct 26 (Reuters) - AT&T Corp., the No. 1
U.S. long distance company, on Monday posted
better-than-expected third-quarter profits as revenue growth in
its wireless, international and business units offset a decline
in the core consumer business.
AT&T's third quarter net earnings increased to $1.9 billion
or $1.09 a share, including several one-time items, compared with
net income of $1.2 billion or 65 cents a share in the same period
a year earlier.
Third quarter income from continuing operations rose to
$2.096 billion or $1.00 a share, compared with $1.078 billion or
60 cents in the year-ago quarter. The results beat Wall Street's
earnings expectations of 95 cents a share, according to First
Call, which tracks earnings estimates. Total revenue for the
quarter increased 4.3 percent to $13.653 billion, compared with
$13.090 billion in the third quarter of 1997.
Revenue from business services increased $262 million, or 4.7
percent, to $5.823 billion in the third quarter, driven by strong
double-digit growth in high-speed data services such as
frame-relay and high-speed private line services.
Revenue from consumer services fell 2.9 percent to $5.806
billion due to intense domestic and international competition,
the effects of rival's call-around promotional calling plans and
the substitition of wireless services for calling card calls.
AT&T's total net wireless subscribers additions were 325,000, an
increase of nearly 74 percent, due, in part, the company's new
Digital One Rate pricing plan. AT&T's WorldNet and other on-line
service revenues increased 65.1 percent to $100 million.
AT&T said it remains on track to complete its proposed $48
billion acquisition of cable television giant Tele-Communications
Inc. in the first half of 1999. |
