AT&T meets earnings estimates, clocks $33B revenues in Q2

AT&T recorded 1.4% growth in revenues taking to $33 billion during the second quarter of 2015 and increased the number of wireless customers by 2.1million during the period. The market analysts projected that revenues would be $33.07billion. Earnings per share (EPS) of the company grew 61% to 69 cents.

AT&T has been implementing customer promotion schemes such as equipment installment and bring your-own-device plans. These market promotion plans are helping the company improve revenues that grew 2.1% to $18.3 billion in wireless business. wireless equipment revenues rose 14.6% to $3.2 billion.

However, wireline revenues eased 2.9% to $14.2billion following the adjustment of sale of Connecticut operations in the fourth quarter of 2014.

AT&T CEO and chairman Randall Stephenson says his company is focusing on high quality and high speed wireless service.

Announcing the earnings report, Stephenson said in the statement that the company's revenues and margins grew.

"We grew revenues, expanded margins and delivered double-digit adjusted (earnings per share) and cash flow growth," he said in the statement.

The operating income went up to $5.7 billion from $5.6 billion, while net income dropped to $3 billion from $3.5 billion.

The net addition of 2.1million wireless subscribers of wireless arm of AT&T includes 410,000 postpaid, 331,000 prepaid and one million connected cars.

"We added more than two million new wireless subscribers as the repositioning of our smartphone base nears completion. We also began expanding high-quality, high-speed wireless service to Mexican consumers and businesses", Stephenson said.

"This is a pivotal time for us. We look forward to closing DIRECTV and building on this momentum by delivering a new TV everywhere experience integrated with mobile and high-speed Internet service", he added.

The number of U-verse broadband subscribers increased by 241,000 taking the total to 12.9million, while the broadband subscribers were down 136,000 to 15.96 million. Adding to this, the number of U-verse subscribers also eased by 22,000 to 5.9 million.

AT&T is expected to approve its $48.5 milllion acquisition of DirecTV, a satellite TV provider, shortly. According to a statement of John Stephens, CFO of the company, in a conference call with analysts, the acquisition deal is expected to yield $2.5 billion worth of cost synergies.