AT&T Posts Small Gain in Profits
NEW YORK (AP) _ AT&T today reported a small gain in first-quarter operating profits, meeting most Wall Street forecasts, as revenues increased 5.8 percent for the nation’s largest long-distance provider and cable TV company.
The company’s operating profit for the first three months of 2000 totaled $1.73 billion or 53 cents per share. That excludes one-time factors and the impact of certain ownership interests that gave AT&T net income of $1.74 billion or 54 cents per share for the quarter.
The operating earnings per share matched the 53 cent average expected by analysts surveyed by First Call/Thomson Financial.
In the same period in 1999, AT&T posted an operating profit of $1.72 billion, but the per-share breakdown amounted to a heftier 61 cents because the company had not yet issued an avalanche of new stock in its purchase of cable provider Tele-Communications Inc. After onetime items, AT&T’s net income totaled $1.08 billion or 38 cents a share in the first quarter of 1999.
Revenues came to $15.84 billion in the quarter, up from combined revenues of $14.97 billion posted a year ago by AT&T and the soon-to-be acquired operations of TCI and IBM Global Network, an Internet services business.
Wireless revenue grew more than 40 percent from year-ago levels, while revenues from business services such as high-speed Internet grew at a high-teen rate, the companys said.
The company finished the quarter with nearly 2 million subscribers to digital cable TV, with an average of 3,000 being added every day.