AT&T posts solid fourth quarter earnings led by $6.9 billion in profit

By on January 29, 2014, 10:30 AM
t-mobile, att, earnings, wireless carrier, quarterly earnings, profit

AT&T has been under increased pressure from rival T-Mobile in recent months and judging by their just-released fourth quarter earnings, the company certainly answered the bell. Several key categories saw improvement during the three month period despite the fact that the market is nearing saturation.

The wireless provider posted net revenue of $33.2 billion during the fourth quarter of 2013, an increase of 1.8 percent but just under the $33.1 billion projected by analysts. Profit came in at $6.9 billion during the period ($1.31 per share), up from a $3.9 billion loss in the year-ago period.

AT&T added 566,000 postpaid subscribers during the quarter and 440,000 net tablet customers while losing 32,000 prepaid customers, resulting in a total of 110 million subscribers in the books. The company revealed that smartphones now account for 93 percent of their postpaid sales.

Part of that growth has to do with rolling out new features like Next, the company’s early upgrade plan. AT&T said a million people have signed up for the program which accounted for 15 percent of postpaid upgrades during the period. And with a new plan on the table to pay T-Mobile customers to switch to their network, things are looking promising as we dive deeper into 2014.

Elsewhere, the nation’s second largest wireless provider added 630,000 Internet subscribers and 194,000 television customers. Additionally, AT&T added 78,000 U-Verse business customers.

CEO Randall Stephenson said there is no doubt that competition will remain strong in the market but they will continue to modify their value proposition accordingly.




User Comments: 3

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Guest said:

I am an AT&T customer and they screwed me over with the next plan.... I got a Note 3 for my birthday which did not get there they sent me the wrong phone the 1st time. I then am out 299$ for the phone which was to be on a two year contract. AT&T did not work with kept saying I only paid 49$ for my note 3.... AT&T and me maybe going to small claims court for this mishap. they took 300$ of mine and put me in the next plan which I did not sign up for and I am looking forward to moving to another carrier here in a few months. So they have gotten next customers but at what cost?

Guest said:

I am an AT&T customer and they screwed me over with the next plan.... I got a Note 3 for my birthday which did not get there they sent me the wrong phone the 1st time. I then am out 299$ for the phone which was to be on a two year contract. AT&T did not work with kept saying I only paid 49$ for my note 3.... AT&T and me maybe going to small claims court for this mishap. they took 300$ of mine and put me in the next plan which I did not sign up for and I am looking forward to moving to another carrier here in a few months. So they have gotten next customers but at what cost?

I'm sorry to hear that, but you must remember your experience does not mirror the experience of millions of AT&T customers who are satisfied with their carrier. The same is true for any other carriers.

EClyde EClyde said:

Yet they can't get me a cell signal worth beans. Good profit though. In another 20 years, maybe

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