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story category AT&T's First-Quarter Profit Doubles
691,000 new DSL customers, 20,000 U-Verse
(old news - 09:27AM Tuesday Apr 24 2007)
tags: business · telco · stats
Tipped by Ahrenl See Profile
As expected, AT&T this morning released their financial results for the first quarter. According to the company, first-quarter profit almost doubled, thanks to their $86 billion acquisition of BellSouth and cost-cutting measures at Cingular. The company added 1.2 million net mobile phone customers -- and while AT&T only has 20,000 U-Verse customers, they say they're signing them up now at a rate of 2,000 per week. The company is still having great success with DSL, adding 691,000 new DSL customers last quarter to reach 12.9 million now in service. Financial analysis can be found via MarketWatch, The Street and Bloomberg News.

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Forums » AT&T's First-Quarter Profit Doubles
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mesmerMAN

join:2006-01-18
Miami, FL

i want the bellsouth name back

i can't trust the name AT&T
Drakemoore

join:2005-02-03
Hawthorne, FL

Re: i want the bellsouth name back

I myself am actually a bit disappointed that AT&T bought bell south. I was hoping that once they merged we might get a bit better services, like even out their packages a bit more AT&T west have higher upload speeds.

U-verse is also disappointing, aside from the price I doubt I'll ever have it in my area, if it ever gets going at a decent pace anyhow.

Somewhat thinking those Double first quarter profits aren't going towards increasing roll outs more..

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
·Comcast

Re: i want the bellsouth name back

said by Drakemoore See Profile :

I myself am actually a bit disappointed that AT&T bought bell south. I was hoping that once they merged we might get a bit better services, like even out their packages a bit more AT&T west have higher upload speeds.

U-verse is also disappointing, aside from the price I doubt I'll ever have it in my area, if it ever gets going at a decent pace anyhow.

Somewhat thinking those Double first quarter profits aren't going towards increasing roll outs more..
You would have had better luck with BellSouth than with AT&T.
--
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rr.cx - Personal Site.. coming soon.

verolom

join:2002-03-23
Eagleville, PA
·Comcast

You need to be patient. It takes time after the merger for the wheels to turn, especially now that T is such a big company (again). The old SBC services are still not integrated with the old AT&T ones and new ones are coming up. There is a lot of pressure to execute so T might surprise you services-wise, not time-wise and certainly not price-wise (you'll still be paying through the nose

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest

Re: i want the bellsouth name back

i call bullshit.

somehow they are able to roll out the biggest marketing campaign ever but they aren't able to do these other integration needs? like, i don't know, standardize pricing and speeds? bell south is stuck with expensive dsl and slow speeds whereas sbc is faster and less expensive.

b.s.

verolom

join:2002-03-23
Eagleville, PA
·Comcast

Re: i want the bellsouth name back

So for you, making a bunch of 30 second commercials that btw were done many months ago is the equivalent in complexity of upgrading, reconfiguring and connecting thousands of network elements and realigning all the people that make them work?

Brilliant!

It's not a rocket science, you can do it in your home garage!!!

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: i want the bellsouth name back

if they can plan months ahead to make commercials, they can plan ahead for reconfiguring the network and billing system. the thing is, they don't want to do that as it will cost them money. but those voices: transition takes time, etc. please.

bassthumpa
Premium
join:2000-12-26
Austin, TX

Re: i want the bellsouth name back

Confirmed: You have no clue.
DslTrblShoot

join:2004-09-23

You might had a point if the two companies were allowed to collaborate their network systems and the like during the merger approval process. However according to FCC regulations they were not allowed to collaborate, but actually act as competitors. Just like when SBC was buying ATT, they could not collaborate either.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest

Re: i want the bellsouth name back

said by DslTrblShoot See Profile :

You might had a point if the two companies were allowed to collaborate their network systems and the like during the merger approval process. However according to FCC regulations they were not allowed to collaborate, but actually act as competitors. Just like when SBC was buying ATT, they could not collaborate either.
if planning (not implementing) for the transition is "collaboration" then it follows that the commercials for the merger also couldn't have been produced as it would be seen as "collaboration" also. bellsouth PR or marketing must have given their logos to AT&T/SBC in order to make those commercials. or is a double standard (planning ahead in this situation) somehow allowable?

verolom

join:2002-03-23
Eagleville, PA
·Comcast

Re: i want the bellsouth name back

There is a difference between playing with a company logo, throwing darts at it, or setting it on fire, and doing so in public. Think of it this way, t-shirts with a championship winner are always printed ahead of time for both teams, so they are available immediately after one is announced, but only the t-shirts with the winning team make it to the public. AT&T could be making (having some graphics design company make) commercials about a merger with say Qwest right now even if that is extremely unlikely to happen (as far as you know).

Merging networks and improving service is a whole different proposition both in cost and complexity.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest

Re: i want the bellsouth name back

said by verolom See Profile :

Merging networks and improving service is a whole different proposition both in cost and complexity.
point taken. however, AT&T could immediately change the price of BellSouth area dsl offerings to be in line with what MaBell is offering. they don't because?

verolom

join:2002-03-23
Eagleville, PA

Re: i want the bellsouth name back

I can think of multiple reasons but likely we will agree on one, to make more money.

WhoaThere

@cox.net
Whoa, slow down there. We just got the trucks done and still waiting on uniforms (I heard we need at least 400,000 shirts) It will take a little longer to get the other, more complicated (dsl/cellular/etc.) stuff to get integrated.

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Pro Forma results

In a comparison that shows how AT&T did in 1st qtr 2007 vs 1st qtr 2006, you use what is called "Pro Forma" results that take in to account what the merged companies did in 2007 vs the non-merged entities from 2006.

When seen that way, AT&T only increased revenues by 1.7% from 1st qtr 2006. And their profits increased 25% measured by EPS(Earnings per share). So the 1st qtr profit did not double from last year.

But a 25% profit increase on a 1.7% revenue increase shows that there were truly benefits to merging as AT&T claimed. That is due to reduced costs. The shareholders are getting a better return on invested assets.
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Ahrenl

join:2004-10-26
North Andover, MA
·Verizon FIOS

Re: Pro Forma results

Well, the company actually said "first-quarter profit almost doubled..".

And it did on a nominal basis, just not a per share basis. They did make twice as many dollars. It's just attributed to almost twice as many shareholders. Those are some impressive cost savings.

A 25% 1Q EPS increase is pretty ridiculous too.
Ahrenl

join:2004-10-26
North Andover, MA
·Verizon FIOS

My Favorite Part

AT&T accelerated a share buyback plan, saying it will complete $10 billion of repurchases by the third quarter instead of the end of 2007. The company bought 81 million of its shares for $3 billion in the first quarter.
Isn't that about what Verizon is spending on FTTH? So with doubling profits they still need to buy back shares this fast to justify their valuation? Granted that's only 4% of their stock in 2 QUARTERS.. jeesh.
raye
Premium
join:2000-08-14
Orange, CA

No innovation, just fat trimming

If their profit did not double I would have been surprised, seeing that they took over a company (Bell South) that was almost as big as at&t.

With companies Google, Microsoft, Cisco showing greater profit through innovation, whether it be new products, improved services or lower executive pay, this news is about as underwhelming as you can get.

The one positive is the DSL count. Cheap sells, even though the bandwidth for most of these customers is not high speed IMHO (768Kbps/128kbps)
NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
·Pacific Bell - SBC

Re: No innovation, just fat trimming

said by raye See Profile :

Cheap sells, even though the bandwidth for most of these customers is not high speed IMHO (768Kbps/128kbps)
AT&T doesn't offer any 768kbps/128kbps plans. You can get the "Basic" package (328kbps/128kpbs), or the "Express" package (1536kbps/384kbps).

»https://swot.sbc.com/swot/dslMassMarketC···YNAMICIP

Not counting what Bellsouth plans are still in effect.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: No innovation, just fat trimming

Express.....yeah, I guess some people would call a Yugo fast too.
NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
·Pacific Bell - SBC

Re: No innovation, just fat trimming

said by inteller See Profile :

Express.....yeah, I guess some people would call a Yugo fast too.
Its a marketing term. Used to identify a particular package. I suppose that they could have called it, "Molasses", to satisfy folk like you. Or they could have just called it, "Bob", or "Joe".

It is fast enough for most purposes. You can't drive a Porsche any faster than a Yugo in downtown traffic.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum
bmn
? ? ?
Premium,ExMod 2003-06
join:2001-03-15
hiatus

UVerse numbers seem a bit fishy....

They claim they have 20,000 users and are signing up 2000 per week. Now, does that mean that as of this week they were getting 2000 subs per week , or is that 2000 per week on average ? And even then, what's the churn rate for their Uverse customers because if they are signing up 2000 customers per week, then that 20,000 customer number seems a bit low.
--
Prove it...
cwh

join:2006-05-14
San Antonio, TX

Re: UVerse numbers seem a bit fishy....

They have ramped up to 2000 per week. It was reporting that is over 1000 a month or so ago and few hundred a week at the beginning of year. The pace of installs in accelerating.
bmn
? ? ?
Premium,ExMod 2003-06
join:2001-03-15
hiatus


1 edit

Re: UVerse numbers seem a bit fishy....

That still seems kind of fishy... If they were adding subs at 1000 per week before that and just ramped up to 2000, they should still be above 20,000 by now. Remember, UVerse has been available for several months now.
--
Prove it...
cwh

join:2006-05-14
San Antonio, TX

Re: UVerse numbers seem a bit fishy....

Yes and it started the year with 3000 users and signing up a few hundred a week. The pace of installs has grown from there with much of growth probably occuring in the last 6-8 weeks.
Bocephus
Premium
join:2006-10-24
Oklahoma City, OK

U-verse is crappy

uverse still stinks and at&T still sucks
Hazen

join:2003-02-25
Sapulpa, OK

Re: U-verse is crappy

You can't change a mans mind who loves cox. Not that there's anything wrong with that.
NewMariner

join:2005-06-24

Re: U-verse is crappy

Yea there are those Other guys that Like to suck on the goodness of Cox...then theres the Heterosexual Man...
Bocephus
Premium
join:2006-10-24
Oklahoma City, OK

Re: U-verse is crappy

you guys are the same way with at&t you like to schlob thier nob

wings10
I Am Legend
Premium
join:2004-06-09
South Elgin, IL

Thanks AT&T!

I got my DSL after waiting over 2 years. Thanks AT&T!!!!!!
--
Live Well, Laugh Often, Love Much.
rid0617

join:2003-07-20
Greer, SC

Re: Thanks AT&T!

I've been waiting for something better than 1.5 for 3 years. My actual downloads average 700-900. Keep being told their favorte phrase "best effort". Can't wait to see the reaction when I send half the money they want and call it my best effort.
Forums » AT&T's First-Quarter Profit Doubles


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