July 24th, 2007
Groking the AT&T 2Q fiscals: 146,000 new iPhone subs in first two days, etc., etc.
In Focus » See more posts on: iPhone
Because this isn’t really a financial blog, we don’t normally cover company earnings announcements. But since AT&T introduced iPhone near the end of the last fiscal quarter, and published their latest fiscals today, I thought I would grok the highlights you might care about.
Here they are, in bullet form:
- AT&T has 63.7 million wireless subscribers, most of any U.S. carrier.
- At the end of second quarter, AT&T’s wireless operations had nearly 37 million active data users, up 39 percent over the past year.
- During the quarter, these customers sent 277 million multimedia messages and nearly 18 billion text messages, with both volumes more than double totals in the year-earlier second quarter.
- AT&T notes that the June 29 launch of the IPhone allowed for less than two days of sales and activations before the end of the quarter. In that time, AT&T activated 146,000 iPhone subscribers, more than 40 percent of them new subscribers.
- The company says that sales of the iPhone continue to be strong in July with store traffic above historical levels.
- Average monthly subscriber churn for AT&T’s postpaid wireless customer base was 1.2 percent, down from 1.5 percent in the year-earlier quarter and 1.3 percent in the first quarter of 2007. Total churn, including prepaid and reseller results, was 1.6 percent, down from 1.7 percent in the year-earlier quarter and in the first quarter of 2007.
- In the wireline world, regional consumer revenues increased 0.4 percent, driven by a net gain of 946,000 regional consumer connections (retail access lines, high speed Internet plus video connections) over the past year.
- U-verse services are now available in parts of 23 metro areas, and sales and installations have ramped significantly. At the end of the second quarter, AT&T had 51,000 U-verse video subscribers, up from 13,000 three months earlier.
- Total video connections, which include AT&T U-verse service and bundled satellite television service, increased by 200,000 in the second quarter to 1.9 million. At the end of the second quarter, 5.9 percent of AT&T’s primary consumer lines also had a video solution from AT&T, up from 3.8 percent a year earlier.
- AT&T’s high speed Internet connections, which include DSL, AT&T U-verse high speed Internet and satellite broadband services, increased by 400,000 in the quarter, reflecting typical seasonality due to end-of-school-year disconnects.
- At the end of the quarter, AT&T says it had 13.3 million consumer and business high speed Internet connections, up 2.2 million, or 20.0 percent, versus pro forma totals a year earlier. Across AT&T’s regional operations, 35.0 percent of its consumer primary lines now have the company’s broadband service, up from 27.8 percent one year earlier.
Russell Shaw is an enterprise computing journalist, analyst and author based in Portland, Oregon. See his full profile and disclosure of his industry affiliations.
