AT&T Q1 Profit Climbs On Revenue Strength

(RTTNews) - Telecom major AT&T Inc. (T) reported Thursday significantly higher profit in its first quarter with growth in operating revenues that topped market estimates. Service revenues declined, offset by growth in equipment revenues.

For the first quarter, net income attributable to common stock climbed 63.8 percent to $7.50 billion from last year's $4.58 billion. Earnings per share were $1.04, up 65.1 percent from $0.63 last year.

On average, 22 analysts polled by Thomson Reuters expected earnings of $0.78 per share. Analysts' estimates typically exclude special items.

Operating income increased 2.3 percent to $7.66 billion.

Total operating revenues increased 2.7 percent to $43.94 billion from last year's $42.78 billion. Analysts were looking for revenues of $42.69 billion.

Service revenues edged down 1 percent from last year to $38.50 billion, while equipment revenues climbed 39.5 percent to $5.44 billion.

The communications segment operating revenues grew 5.2 percent to $28.18 billion. Mobility total operating revenues grew 9.4 percent.

WarnerMedia operating revenues increased 9.8 percent.

Total broadband connections edged up 0.8 percent, while total retail voice connections fell 13.7 percent.

Total mobility subscribers grew 10 percent.

In pre-markect activity on NYSE, AT&T shares were trading at $30.60, up 1.63 percent.