AT&T revenue misses estimates as promotion weighs on revenue

Reuters News
Posted: Jul 23, 2014 4:17 PM

By Marina Lopes

WASHINGTON (Reuters) - AT&T Inc's second-quarter revenue rose, but slightly less than Wall Street forecasts, as a promotional offer to charge customers for devices separately from service weighed on average revenue per user.

The No. 2 U.S. mobile provider said on Wednesday that, excluding items, it earned 62 cents, one penny less than Wall Street expectations according to Thomson Reuters I/B/E/S.

AT&T shares fell 1.67 percent to $35.28 after closing at $35.88 on the New York Stock Exchange. AT&T added 1,026,000 contract subscribers in the quarter, the most in five years, matching Wall Street expectations.

Wireless service revenue decreased 1.4 percent in the second quarter, while equipment revenue grew 44.8 percent.

AT&T earned $3.6 billion, or 68 cents per share, compared with $3.8 billion, or 71 cents per share, in the year-ago quarter.

Revenue rose to $32.6 billion from $32.1 billion in the year-ago quarter.

(This version of the story corrects the percentage drop of the share price.)

(Reporting by Marina Lopes; Editing by Richard Chang)