ATT Profits Rise as it Keeps Churn in Check

AT&T Inc. (NYSE: T) today reported earnings of $3.46 billion, or 57 cents per share, in the quarter, compared with $2.85 billion, or 45 cents per share a year ago, in line with analysts estimates, as the telecommunications firm kept churn in check and wireless continued to grow. This marked AT&T’s 12th consecutive quarter of double-digit growth in adjusted earnings per share.

Total average monthly subscriber churn, which includes postpaid, prepaid and reseller subscribers, was 1.7 percent, flat with the year-earlier first quarter and with the fourth quarter of 2007. Retail postpaid churn was 1.2 percent, down from 1.3 percent in the year-earlier first quarter and flat with the fourth quarter of 2007.

AT&T’s first-quarter net gain in wireless subscribers totaled 1.3 million, up 104,000, or 8.7 percent, versus net adds in the year-earlier first quarter. AT&T ended the quarter with 71.4 million subscribers in service. Total net additions in the first quarter were reduced by 330,000 because of the shutdown of AT&T’s TDMA wireless network in late February.

Keeping churn under control helped AT&T post an 18.3 percent increase in wireless revenues. Wireless data revenues from areas such as Internet access, messaging and media bundles grew 57.3 percent.

“Revenue growth continues to ramp, we have good momentum across key growth areas, major cost initiatives are on track, and our operational results reinforce the confidence we have in our outlook,” said Randall Stephenson, AT&T chairman and chief executive officer, in a prepared statement.