AT&T posts $17.9 billion in revenue, adds 625,000 postpaid customers in Q1

AT&T
By Andrew Martonik on 22 Apr 2014 07:32 pm EDT
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AT&T reported its first quarter 2014 results, showing impressive growth in revenues, handset sales and customer acquisition for the quarter. While AT&T operates businesses outside of its wireless division, we're going to focus on this portion. For the quarter, AT&T posted $17.9 billion in revenue including handset sales, up 7 percent year-over-year, leading to $5.1 billion in operating income, up 8.1 percent.

On the customer side, AT&T added 625,000 postpaid customers, its largest first quarter gain in five years. It also added 693,000 "connected devices," but saw prepaid customers dip overall in the quarter mostly due to the loss of over 200,000 reseller subscribers. Of those additions, 311,000 were for postpaid smartphones, while 313,000 were tablets.

AT&T sold 5.8 million smartphones in total for the quarter, making up 92 percent of all postpaid phone sales — which first quarter record. This leads to 78 percent of AT&T's postpaid customers now using smartphones, up from 74 percent this time last year. In terms of connectivity, 57 percent of AT&T's postpaid smartphone subscribers have an LTE-capable device.

One interesting note on the growth was that AT&T says 40 percent of the gross smartphone additions and upgrades came by way of its AT&T Next device installment plan, up from just 15 percent last quarter. Additionally, about 45 percent of all postpaid subscribers are now on a Mobile Share plan, with a full 81 percent now being on some form of usage-based billing (i.e. not unlimited) plan.

Source: AT&T

75 comments

vhiconsulting

Making that big money!!!

Posted via CB10

Observation Junkie

That's a lot of profit

 Posted by the Crackberry Pirate 

maclaskey

Revenue not profit. Be nice to know the profit though.

Posted via CB10

Denny_Crane

Profit = $5.1 billion

"AT&T posted $17.9 billion in revenue including handset sales, up 7 percent year-over-year, leading to $5.1 billion in operating income, up 8.1 percent."

scorepion

I doubt operating income equals profit, but I could be mistaken

Posted via CB10

Denny_Crane

That's exactly what it means.

Jerale

Hmmmmm...are any of the smartphones BlackBerry's?

Powered by my BlackBerry (Z10). Join my #BBM Channels C001227CF, C00476C37, C003829C9, C002454C9,C002190AC, C00120CE3

Observation Junkie

Pretty much certain that the majority chunk is between Apple & Samsung handsets

 Posted by the Crackberry Pirate 

Dwaynie Boy

I saw an ad from AT&T in a magazine today that showcased it's international reach with mobility, the phones displayed were both BlackBerry Z10's

Posted via CB10

jcarlos100

I'd love to see that lol

Posted via CB10

pvphooman

All those U-verse commercials must be working.

Z10STL100-3/10.2.1.2947 CB10

Andrew Martonik

Apparently. We of course didn't talk about wireline in the post here, but AT&T added some 600,000 wired internet customers in Q1.

raino

Andrew, what are the profits on the revenue? Any idea?

Blackberry_Genius

Guess I added to the prepaid revenue lol. 60 for unlimited and 2GB data is decent price over post paid. No incentive to be a contract customer.

Posted via CB10

Andrew Martonik

GoPhone is going up to 2.5GB of data, too, with no price increase at the end of the month.

mICRoMaTe

You pay $60. I pay 39.99 on simple mobile for 4G LTE on my SLT100-5. Sweet heavens!

Posted via CB10

SC457

Good, hopefully BlackBerry can partner with them and start working together. I've personally liked AT&T since i've been with them from 06 or 07 until now.

VR6

Too bad there wasn't a reference to BlackBerry in this story.

Posted via CB10

Rolf Hed

I noticed that too... Maybe it's just an industry story? Still kinda weird though I guess...

ns400r

Blackberry stock is up today on the TSE and Nasdaq...hmmm....

Posted via CB10

Q10Nutter

Yeap I was wondering why too

Q10SQN100-3/10.2.1.2228, Z30, Z10, iP5, SGS3

cwcheung

Time for BlackBerry to hit these kind of numbers again! Can't wait.

Posted via CB10

Hassan00

Don't wait because you are going to wait forever

Posted via CB10

rasib BBRY

Lol, sad but true, nothing lasts forever

Posted via CB10

JoBudden

I love AT&T as a carrier. Only thing they are killing me on is the Z30¡!!

Posted via CB10

The_Dark_Knight_Forever

What about AT&T being dead last to releases the newest  updates?

Posted with my T-Mobile USA  Q10 via CB10.

JoBudden

It is what it is. Could have not released it at all. :/

Posted via CB10

curvezzz

They did skip 10.2 ~sigh

 Z10STL100-3/10.2.0.1791 on ATT 

BerryRipe

All US carries bite the big one! I have no choice but to use one of them and Verizon is it, I don't want to give up my grandfathered unlimited data just yet.

 BlackBerry Q10  Keep The Faith 

James Stamm

I was led to believe that when a verz.customer got a new phone that their unlimited data plan ended.

Rob757

Mr. Chen needs to build that business relationship with AT&T, they're the most known in the states and with better coverage.
However, I hate the fact that AT&T was the last carrier on updating to10.2.1 globally. Hopefully we won't see this with 10.3 coming soon.

Posted via CB10

EchuOkan1

Add no Z30 in sight either. =0/

Posted via CB10

cbvinh

Verizon has the reputation for best coverage. AT&T has the repuation for overcharging their customers. I have the most basic landline service for emergencies and it's $21 for the line + $9 in taxes! I'd get someone else other than AT&T, but they're a monopoly here. When I had DSL with them, it was $25/month for 1.5 Mbps down/384 Kbps up peak... before they raised it to $50-$60 after one year. Now I only pay $35/month 20+ Mbps up/down from a local ISP.

raino

I thought Verizon had the reputation for overcharging. Unless you're taking about value for your money?

BionicKris

When I was shopping around to decide whether to stick w / AT&T or not I found that Verizon cost quite a bit more and their coverage wasn't as good in my area of NY. Verizon only has the unlimited talk and text plans, where AT&T had the choice of those or the regular a la carte plans, which works best for me, so I stayed with AT&T.

I use very few minutes since I mostly talk to other mobile users, so I can get the smallest minute plan, a text plan and put more of my money into the data plan, which is cheaper than at Verizon. If you go over on data each additional GB is $10 at AT&T, where it is $15 at Verizon.

Posted via CB10

srblarams

Went into a Att store yesterday to get a sim card for my new unlocked Z10. The rep asked me if I had any feedback regarding the service with AT&T. I told him they have not been very good with BlackBerry products and services. He said they were phasing BlackBerry out and the BlackBerry rep has not been in their store for over a year. He had no clue that the new OS could run Android app. BlackBerry needs to get on the ball again and re educate at the store level.

Posted via CB10

JORENO

I went into a AT&T store, the rep was using a Q10. I asked how he liked it, he said no comment.

Posted via CB10

effort900

No wonder prices are so high....consumers need to demand lower prices! It's obvious they are taking advantage of every single one of their customers! I am sure the other providers would show similar profits. Big Oil, Big Cable and Big Cell Phone Companies! Deregulation was THE WORST decision ever made. There needs to be checks n balances.

Posted via CB10

BionicKris

Yup. I agree 100%.

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Jay Hooker

I'm no financial guru, but this must not have met expectations, T is down over 2% after hours...

Posted via CB10

Bin Hoff

I've been with them for many years. Excellent service all around. I just don't like my bill. They will have to lower prices for me to stay once contact is up.

Posted via CB10

joshua_sx1

"Of those additions, 311,000 were for postpaid smartphones, while 313,000 were tablets."

And BlackBerry is dropping the "tablet" where they have a better chance to succeed...

Posted via CB10

rickster2611

All that money and they couldn't put a BlackBerry 10 update out on time.

Scandalous...

Posted via CB10

deptech

Seems to me that AT&T customers are paying a lot for their service.

Z30 on 10.2.1 in Canada

Charles A Martin

I'm at@t and unlimited and I will never let it go

Not your typical blackberry user

Charles A Martin

AT&T my bad lol

Not your typical blackberry user

privateeyes

All that money at our expense and lack of service to BlackBerry and it's customers. I cannot wait to see them crumble latet&t.

maclaskey

Blackberry need to do some major relationship building with AT&T. With the right marketing and buy in from AT&T BlackBerry could benefit tremendously.

Posted via CB10

curvezzz

I'll stay part of the 19%

 Z10STL100-3/10.2.0.1791 on ATT 

moegrand

Seems like a smallish number of subscribers... how many does Bell or Rogers have?

Posted via CB10

raino

Those are quarterly numbers you're looking at, not their total user base size.

vlad_tastic

Haha they lost me though, power to Verizon!

Posted via CB10

stlabrat

Not bad for 25 dollar 3 month prepaied, calls and 200 text per month. If you are big on text, you can get 1000 for $10.00. You can use wifi for data (I think). Nice. I wish Canada got the same plan. - dreaming. For poor student, it is heavenly structured plan.

Posted via CB10

Vithulan L Nathan

Try chatr. I think they have the perfect plan for you

Posted via the awesome White Z10 STL100-2/10.2.1.2141

KOman

AT&T will support BlackBerry when BlackBerry gets its house in order. A premium service provider like AT&T would love to offer premium BlackBerry devices, but let's not forget less than a year ago TH had for sale signs up. BlackBerry will shine again, just in many different ways..."less dependent on devices"...and less dependence on provider support.

Posted via my fancy BB10 pager thingy

rcab

I too am staying as part of the 19% unlimited users. Wonder if they will follow Sprint's announcement and end the locking of phones. Right now, we really don't have any great support in the U.S. by the carriers for BB. It will be interesting to see what happens when the new models come out

TonyRomo9

I was a customer of theirs for 15 yrs an switched to Verizon because all they had was EDGE network in my area. Biggest mistake ever. Verizon SUCKS. I'm going back to ATT as soon as possible

Posted via CB10

quizm

Someone needs now to jump this technology. I mean why not have local phone to phone contact or something. There is too much money and too much corrupt legislation to assure it. It can be beat.

Posted via CB10

ray6.com

Having been both a prepaid, and postpaid customer on AT&T, I must say that the prepaid route can be pretty tricky. I had a BlackBerry Torch 9800 postpaid on AT&T, and never experienced any major technical nor coverage issues. However, when I switched to a prepaid plan, it was a not so great experience. For one, I started receiving messages to my phone, informing me that my message memory was full, and to delete messages. I was caught by surprise, as I had a lot of free space on both my SIM and MicroSD card. This went on for a few months, until I finally decided to take it into AT&T. They gave me a new SIM, and I never experienced the "full SIM" issues again. However, I could no longer receive group, or SMS. I called AT&T to inquire about why this was, and was informed that having a smartphone on a prepaid plan, I would have to pay extra for those features, and the SIM memory is capped. I like AT&T, but their prepaid service is not the best.

BionicKris

Interesting. I was wondering how the prepaid plans worked. Sounds like it's not for me either.

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ray6.com

Don't get me wrong, there is some good in having a prepaid plan, which lies in its cheaper pricing. Also, one may not even notice any restrictions to that service. However, I was lucky(I guess) in catching the "dirty trick" they perform. I still have a prepaid plan, but it's only because it fits into my price range, and since I switched phones again, they haven't caught my MMS usage. :-)

NG888

One Carrier can change everything for BlackBerry at this stage.

Posted via CB10

christoph77

Not bad at all

C0038297E Quote of the Day (BBM Channel)

JAM25

I wonder what Verizon got?

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Midgeone25

I'm using Tesco mobile in UK they are a large super marketchain Here and use the O2 network and i must say there prices are good and coverage etc great also 4 g is now available free to customers whose phone allows it.i have noticed that they are also starting to sell BlackBerry 10 phones. I have no time for big greedy supermarkets but they are taking on the mobile phone giants and offering really cheap deals. My 18 month contract has ended but i am definitely staying with them as i am paying half what i paid orange and getting much much better coverage.
PS there twitter etc replys are quite comical sometimes in a good way.

Tapping and flicking on my Zed 10

zensen

they could have also mentioned that they finally released 10.2.1 too. ;)

blackberryoveratt

My new plan with AT&T is $180 per month 5 lines 10gb data and 1400 minutes daytime calls to non att folks per month with rollover minutes. So I will stay with them. I'll just update to the official OS via Sachesi if AT&T is too stupid to support BlackBerry updates again.

Posted via CB10

BionicKris

Normally AT&T isn't the last to roll out OS updates. When I got my Z10 at the AT&T launch last year an OS update had been released a day or two before and all the phones were updated before the release. We also got a couple of other updates before Verizon got one.

After using Sachesi to load a leak recently it was so easy that I wouldn't hesitate to do it again as opposed to waiting for an official update from AT&T.

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JMDBERRY

All that $money$ and no AT&T Z30!

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lang007

And you still will not sell the Z30

goUSAFblue

So when does Verizon, Sprint, and T-Mobile release their reports? Or have they? I am interested to see how they are all doing in comparison with past years now that T-Mobile is shaking things up

Posted via CB10

4abetterworld

More profit = they are increasingly screwing us over.

Why must profits increase every year? Why can't profits just stay at a reasonable level? Then they could pass on some of those improvements to customers...

Too bad it doesn't work that way in our greedy society...

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xLink75e

The reason for that is because AT&T screwed over the reps by changing the commission structure that everyone is converting people over to the new mobile share value plans and using the so called savings to add connected devices into the new plan. At the same time by switching over to the new plans its actually more expensive to do 2yr contracts now the reason why they tell us to convert all customers to the new plans.