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Technology Stocks : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: polarisnh who wrote (2714)	7/29/1999 10:21:00 AM
From: polarisnh	Read Replies (1) \| Respond to of 4298

AT&T Earns $1.59 Billion in Quarter By BRUCE MEYERSON AP Business Writer NEW YORK (AP) -- AT&T (NYSE:T - news) earned $1.59 billion from April to June, edging most Wall Street forecasts for the first full quarter that reflects the telephone company's ambitious foray into cable TV with the acquisition of Tele-Communications Inc. (Nasdaq:TCOMP - news) The second-quarter profit, which amounted to 49 cents per share, compares with an operating profit $1.47 billion, or 54 cents per share, in the same period last year. Analysts had expected a profit of 48 cents per share in the latest quarter, according to a survey by the research firm First Call Corp. The year-ago figures exclude gains from the sale of some operations and costs related to AT&T's work force reductions -- one-time factors that left AT&T with a net profit of $1.13 billion or 48 cents per share. Second-quarter revenues from continuing operations totaled $15.82 billion. That's an increase of 6.7 percent from the combined $14.83 billion generated in last year's second quarter by AT&T and the not-yet-acquired operations of TCI and IBM's Internet services business. AT&T's business services reported revenues of $6.283 billion in the just-ended quarter, an increase of 6.7 percent from year-ago levels. But the consumer services unit, including AT&T's core long-distance calling business, posted a 3.4 percent decline in quarterly revenues to $5.50 billion. Wireless services revenues grew 42.4 percent, adjusted for the acquisition of Vanguard Cellular Systems in May 1999 and the October 1998 sale of AT&T's messaging unit. AT&T's new Broadband and Internet Services unit, which includes the cable operations and At Home Internet service acquired with TCI, had second quarter revenues of $1.420 billion, an increase of 7.6 percent from what those operations generated a year ago before the merger. The TCI deal and the pending acquisition of MediaOne Group, the nation's fourth largest cable TV company, are the lynchpins of AT&T's plan to bypass the local Bell monopolies for delivering local and long-distance telephone calls as a package with TV and high-speed Internet access -- all over the same cable wire. Between acquisitions and spending to upgrade cable equipment for two-way communications, AT&T is expected to spend more than $150 billion on its strategy. ''AT&T's strong second-quarter earnings reflect steady progress in executing our strategy,'' said AT&T Chairman C. Michael Armstrong. ''We met investor expectations by delivering revenue and earnings growth for the sixth quarter in a row.''