AT&T Inc.* (NYSE:T) today reported second-quarter results highlighted by growing revenues and earnings, record wireless service margins and churn, strong wireless data growth and continued gains in U-verse services.
“We executed well across the business and posted another strong quarter with growing revenues, expanding margins and double-digit earnings growth,” said Randall Stephenson, AT&T chairman and chief executive officer. “Our mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better. And most impressive, with this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network. All of these things add to our confidence and enthusiasm looking ahead.
“In addition, with disciplined cost management our cash generation continues to be strong,” Stephenson added. “This allows us to invest aggressively in our growth platforms while returning substantial value to shareowners through dividends and share repurchases.”
Second-Quarter Financial ResultsFor the quarter ended June 30, 2012, AT&T's consolidated revenues totaled $31.6 billion, up 0.3 percent versus the year-earlier quarter. On May 8, 2012, AT&T closed the sale of its Advertising Solutions unit to an affiliate of Cerberus Capital Management, L.P. Year-over-year comparisons include full, second-quarter 2011 Advertising Solutions revenues. When excluding Advertising Solutions results, AT&T’s consolidated revenues grew 2.0 percent. Compared with results for the second quarter of 2011, operating expenses were $24.8 billion versus $25.3 billion, down 2.3 percent year over year; excluding Advertising Solutions, operating expenses were $24.5 billion versus $24.6 billion in the year-ago quarter, down 0.6 percent. Operating income was $6.8 billion, up from $6.2 billion; and AT&T’s operating income margin expanded to 21.6 percent, compared to 19.6 percent, the best in four years. Second-quarter 2012 net income attributable to AT&T totaled $3.9 billion, or $0.66 per diluted share, up from $3.6 billion, or $0.60 per diluted share, in the year-earlier quarter.
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