AT&T’s Profit Down 9.7%, Far Higher Than Forecasts

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Ever since the economic recession started to really hit the market the vast majority of companies have reported dropping revenue as well as net profit and AT&T, the largest provider of both local and long distance telephone services in the United States, makes no exception.

The telecommunications giant said on Wednesday in a fiscal report that its net profit for the first quarter dropped 9.7 percent compared to the same period of last fiscal year. However, the financial results of the company exceeded the forecasts of the Wall Street analysts by far. Net income for the quarter was $3.1 billion, 10 percent lower from $3.5 billion a year ago.

AT&T’s revenue was of $30.6 billion, a bit lower than $30.7 billion in the quarter a year earlier. The company’s earnings dropped 5 percent a share due to a rise in pension and retiree expenses. Without taking that item in consideration, earning were 58 cents a share, higher than the 48 cents a share as most analysts forecasted.

The telecommunications giant is doing pretty well actually. It recorded an important growth in wireless and U-verse broadband and T service as well. AT&T gained 1.2 million new subscribers for its wireless service. The company now has 78.2 million.

The Apple iPhone 3G was a strong vector of growth for AT&T. the telecommunications company activated more than 1.6 million of Apple’s highly-popular smartphone.

“For better or for worse, the industry depends on newcomers to sustain growth,” said Craig Moffett, industry analyst with Sanford Bernstein, The New York Times reported. “They aren’t there any more.”

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