Tuesday, April 15, 2014         

 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

AT&T sees fewer new customers in 3Q

By Peter Svensson

Associated Press

LAST UPDATED: 06:57 a.m. HST, Oct 24, 2012

NEW YORK » The flow of customers into AT&T’s wireless stores slowed further in the latest quarter, putting the company far behind rival Verizon Wireless.

AT&T Inc. today said it added a net 151,000 new customers on contract-based plans from July through September, the lowest number for that period since at least 2003.

The Dallas-based company is blaming short supplies of the iPhone 5, which launched a week before the end of the quarter. But that didn’t hold back Verizon Wireless, which last week reported adding 10 times as many contract-signing customers as AT&T did.

AT&T said the shortage of iPhones meant that most of them went to people who were already AT&T customers. Only 18 percent of the 4.7 million iPhones it activated in the quarter went to new subscribers, the lowest number yet.

AT&T suggested that it suffered in comparison to Verizon because it launched its new data-sharing plans later in the quarter. Verizon launched “Share Everything” just before the start of the quarter and said it prompted people to add lots of extra devices to their plans. AT&T waited until August to introduce “Mobile Share” and was less aggressive about it. At Verizon, “Share Everything” was the only choice available to new customers, while AT&T kept its old plans alongside the new one.

AT&T’s quarterly net income was $3.64 billion, or 63 cents per share, nearly unchanged from $3.62 billion, or 61 cents per share, a year earlier.

For the latest quarter, analysts expected earnings of 60 cents per share.

Revenue was also essentially flat from last year, at $31.46 billion. Analysts expected $31.57 billion.

Comparisons to last year were affected by the sale of AT&T’s phone book business in May. The unit was profitable but shrinking, so AT&T sold a controlling stake to a private equity firm for $950 million.

When subtracting the phone book business from last year’s results, AT&T’s earnings rose about 2 percent in the latest quarter, propelled by the wireless business, and revenue grew nearly 3 percent.

AT&T shares rose 13 cents to $35.13 in premarket trading.

 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email commentfeedback@staradvertiser.com.
Leave a comment

Please login to leave a comment.
johncdechon wrote:
Looks like AT&T is causing its own problems...as usual. It deserves to be humbled.
on October 24,2012 | 06:40AM
2_centz wrote:
After going to their new store on Kapiplani Blvd when I had phone problem, I wanted to quit AT$T and go Mobi back at the Kamehameha Shopping Center. Just the personality of the workers and supervisors there are quite unhelpful type. They made me feel like "so your phone not working that isn't AT&T's problem, I have to spend more money to buy a new one or pay to have the phone fixed. I hope Mobi has better quality phones than AT&T. Very unhelpful. But the customers can always get back after the 2 year contract. But it seems this story is accross the continent too.(?).
on October 24,2012 | 06:58AM
Breaking News
Political Radar
HB 1700 — Day 1

Hoops Talk
Aloha Shamburger

Political Radar

Political Radar

Warrior Beat
All’s fair

Political Radar

Political Radar
SD 23