Everyone's favorite telecommunications giant reported earnings today. Revenues checked in a $31.48B, just slightly below analyst expectations. Earnings per share of $0.61 was right on the button though. Total wireless customers were up 2.1M, slower than when they had exclusive iPhone rights but apparently losing those still hasn't led to utter disaster. The iPhone 4S will likely make for an interesting Q4.
For the first time in four years, they saw growth in the wireline business to $15.0B. Consumer revenues were flat at $5B, while Business revenues were up 0.7% sequentially to $9.3B, although still down 2.7% on the year. Business data grew 1.8% on the year, while 'strategic' business revenues grew 19.3% and now amount to $5.8B annualized - more than a third of total wireline revenues now. VPN revenues grew at 10.2% compared to last year. That's not to say there weren't things going in the other direction of course. Total wireline voice connections fell as they always do to 40.1M, down 10.5% from last year.
Overall, not much surprising here, but at least the economy doesn't seem to be doing any major damage. Of course, the elephant in the room is the T-Mobile USA deal, which remains on the table awaiting resolution of the DOJ's court challenge and the FCC's additional questions on job creation. That will probably get messier before it gets clearer.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Financials · ILECs, PTTs · Wireless