The second largest US telecom provider AT&T (T) posted strong third quarter earnings for the fiscal on October 23. The carrier recorded strong postpaid net additions with improved profitability margins despite increasing competition from smaller national carriers T-Mobile (TMUS) and Sprint (S). So what were the revenue and profit figures for the quarter?
A Brief Glance at the Quarter
The revenue of the Dallas-based company increased 2.2% to $32.16 billion for the quarter. The rise in revenue is primarily attributable to the solid 18% boost in the wireless data revenue of the company. The carrier recorded the addition of 363,000 new postpaid customers on its network during the quarter, which is over twice the number of additions it recorded in the last year quarter.
The third quarter revenue of the telecom giant rose 4.9%. The company reported profit of $3.81 billion up from $3.64 billion a year earlier. The average revenue per user also increased 1.5% year over year, thanks to the wide 4G LTE coverage and rising usage of smartphones. Increase in smartphone penetration helped the company increase the ARPU. As smartphone users consume huge data and account twice the revenue of non smartphone subscribers, AT&T greatly benefited as several subscribers shifted to smartphones. About 89% of postpaid sales came from smartphone users during the quarter.
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