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Last updated: Wednesday, April 22, 2009

AT&T may have had a challenging first quarter with net income falling nine percent, but its wireless business kept the company strong enough to exceed Wall Street expectations. The company had earnings per share of 53 cents and net income of $3.2 billion, down from 57 cents and $3.52 billion in last year’s first quarter. “These results demonstrate focused and disciplined execution as we work through a tough economy,” said Randall Stephenson, AT&T chairman and CEO. Thanks to its exclusive deal to offer Apple’s iPhone in the U.S., AT&T’s wireless business kept the company steady. The carrier had an overall decrease in net income, but wireless revenue rose 8.8 percent to $12.9 billion and wireless services revenue, which doesn’t include handsets and accessory sales, was up 9.6 percent to $11.7 billion, AT&T said. Wireless data revenues were up 38.6 percent to $3.2 billion, more than double the total for the first quarter in 2007. The increase in data revenue was based on messaging, e-mails, Internet access, and access to applications and other services. AT&T also added 1.2 million wireless subscribers for the quarter, for a total of 78.2 million. Credit Goes to iPhone More than 1.6 million iPhone 3Gs were activated during the first quarter and the number of postpaid wireless subscribers with integrated devices more than doubled over the past year, according to AT&T. More than 40 percent of iPhone 3G activations were by customers new to the company. “I am particularly pleased with the success of our iPhone 3G initiative, which has driven strong high-end customer growth and delivered financial benefits ahead of our original outlook,” Stephenson said. “Business and consumer expectations for mobility are on the rise, wireless innovation is flourishing, and the opportunities ahead are substantial.” AT&T is also investing in its 3G network. Currently, the carrier offers 3G…

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Apple’s iPhone Puts AT&T Earnings Above Estimates

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