Strong subscriber growth powers AT&T's Q2 2014 earnings

Strong subscriber growth powers AT&T's FQ2 2014 earnings
By Chuong H Nguyen on 23 Jul 2014 05:15 pm EDT

AT&T had a great quarter that was driven by the addition of 2 million new users to its wireless and wireline businesses. Combined with the rest of its operations, the carrier reported that revenues were up 1.6 percent, meaning that it took in $32.6 billion. The carrier noted a higher $1 billion operating expense compared to a year ago at $27 billion giving it an operating income of $5.6 billion.

AT&T's financial situation was strongly helped by the addition of more than 1 million users to its post-paid accounts and a low 0.86 percent churn rate.

AT&T said it has added 1.6 million smartphones from upgrades and new customers. The carrier notes that 92 percent of phones sold on postpaid accounts were made up of smartphones so feature phones are on the steady decline. Additionally LTE smartphones made up two-thirds of AT&T's smartphone base.

In terms of pricing, it looks like Mobile Share is on the rise, tripling year over year and doubling in 2014.

AT&T Mobile Share® accounts reached 14.6 million, or more than 41 million connections – about 56 percent of postpaid subscribers; 49 percent of accounts on data plans of 10 gigabytes or higher.

A few more highlights from the earnings report:

  • About 44 percent of AT&T's postpaid customers are on a no-contract Mobile Share Value Plan.
  • Half of all smartphones sold, according to AT&T, were to customers on an AT&T Next plan.
  • Additionally, 366,000 postpaid tablets were added to an AT&T plan.
  • All this led to an increase of 3.7 percent of wireless revenues from a year ago.
  • The wireline business is still growing thanks to the U-Verse broadband and TV business with a revenue growth of 30 percent compared to a year earlier.

Source: AT&T

Reader comments

Strong subscriber growth powers AT&T's Q2 2014 earnings


When are you going to carry the Z30

Loving my Q10 and Z10 and waiting to try out my Z30 when I get home next week

Yeah, still waiting for Sprint (my carrier) to finally buy T-Mobile. Wonder if that will allow me to use all of the gsm blackberrys I have laying around.

That's a good question, and it depends on which legacy network they choose to decommission and re-absorb its spectrum. My guess would be the CDMA goes, GSM stays. But that will take ages--Metro PCS' CDMA network still hasn't been fully decommissioned by TMO, and TMO's known for flipping spectrum at a good speed. Sprint...not so much.

That's funny. You have Sprint and await the merger/purchase of T-Mo. I have T-Mo and am fleeing to ATT due to the very same merger/purchase.

It's all about perspective I guess.

Blackberry keeps Johnson National LLC moving

Yes there are. If Sprint successfully purchases T-Mo then I expect the call quality to be as it is on Sprint currently. I used to be a Sprint customer so I am familiar with receiving voice mails, but the phone itself never actually rings. I run a business and I cannot have that type of service for my customers. I have dealt with other Entrepreneurs and colleagues who have Sprint and they deal with it often. I tell them that it is bad for business in my opinion.

I also used to be with ATT before I was with T-Mo. My decision to leave ATT was during an emotional state (they didn't release the update for wifi calling at the time, which I use often when I travel out of the country). So now I am returning to them since T-MO is blacklisted from Blackberry & possibly getting acquired by Sprint.

I hope this answered your question, apologies for being so wordy.

Blackberry keeps Johnson National LLC moving

Haha no worries, I just wanted to know. As for the horrible Sprint service, I think there's a reason they're the 3rd (probably 4th in terms of recent growth) largest carrier.

I can relate to your emotionally charged decision. I was so disappointed when I heard that the Bold 9700 & later 9780 were going to be GSM models only and so I never had the opportunity to use that beautiful device...until today. I ordered a pre-owned one and it should be arriving within the next few hours. It'll be my trusty burner.

I've been a loyal t&at customer for two years, finally made the jump to the smartphone age when I got the Q10. I am glad I did.
Waiting for 2nd bill...

‎Q10 Rules!

None of the better carriers seem to carry the better phones. At least that's how it works in Canada. Just bite the bullet and buy a Z30 without the subsidy. You will likely make up the cost in having a cheaper monthly plan indefinitely.

Posted via CB10

Finally got my unlocked Z30 working correctly on their GoPhone plan. In store service is horrible. The guy I called at the service number was great. The girls at handset service center are now Z30 fans.

Posted from my Z30 using CB10

Since my area has switch over to LTE my service has been WAY better...Hopefully Chen can work some thing out with AT&T so they will have the next round of BlackBerry latest!

I don't expect too much carrier support for the next US releases. Much of it if not all will be up to BlackBerry.

Posted via CB10

WTF does this have to do with Blackberry? We they sold a lot of smartphones this quarter so we're assuming that there were a couple of Blackberry's in the mix. LOL come on now guys this sh*t is WACK!

I had AT&T but no thanks. I am better off with T-Mobile. It works flawlessly with my Z10 and more than half the price.

Posted via CB10 via my BlackBerry Z10 ;)

I am running my Q10 through at&t and price wise they are good but service in my area not the greatest. Many times my Z30 through Big Red had to be called to the rescue. Not good when can't get service in a town 5miles from home and I live in a fairly busy area.

Posted Via CB10 Using my Great Z30, PB or Q10

They also push U-Verse. I'm only with them for phone action. Screw their other products.

Posted via CB10

Bit early to ask? But hey, it's a valid question.

No more Verizon exclusive (Z30) nonsense, please ....

Zzzzwiped from a Zedevice....

How can all the carriers keep adding new customers? Where are they all coming from? There has to be an end to the new customers. Unless people keep switching, but where does the number of lost customers come up?

Posted via CB10

Of course, they're "success" has nothing to do with BlackBerry. The grandfathered unlimited data plan is the only thing keeping me with them.

Posted via CB10