In the first quarter of 2013 AT&T reported net income higher than the last quarter of 2012. This is despite diminished revenue. The source of the profit is AT&T U-Verse subscriptions.
In lay man’s terms this is known as “triple-play”. It combines pay TV, voice and internet services. The average price per subscriber is around $170.
High Speed Connectivity
U-Verse has a max speed of 50 Mbps. However, AT&T promises to increase that to 75 Mbps in the near future. In this regard, significant capital has been earmarked for the project. In the words of chief financial officer John Stephens, “it is all about wireless Internet”.
Other Profitable Endeavors
From January 1, 2013 to March 31, 201,3 AT&T sold a record-breaking 6 million smart phones. Revenue on wireless data also increased 21%, which is roughly $5.1 million. Summed up, that’s a revenue stream worth at least $20 million!
Revenue Decline vis-à-vis Increased Income
Despite posting a net income, total revenues are actually down 1.5%. This is roughly $31.3 billion. Some commentators believe that a significant number of new subscribers to U-Verse came from clients who unsubscribed from AT&T broadband. There were also consumers who switched providers. Hence the increased profits of U-verse while the drop in actual revenues.
Net income is up.
In 2011 the figure was $3.58 billion. In 2012 the figure was $3.2 billion. For the first quarter of 2013 it is $3.7 billion. Not bad AT&T U-Verse, not bad at all!
Aggressive Share Buyback Program
Currently the increase in diluted share per earnings resulted in stocks reaching 67 cents per share. This is up from 60 cents per share in 2012. Percentage difference is 11.7%. This prompted AT&T to initiate a share buyback program. As of press time AT&T repurchased at least 168 million shares. The total amount utilized for repurchase was $5.9 billion!
Are You Interested in Shares?
It is worth nothing that since 2008, the price of AT&T shares has been consistently high. In the first quarter of 2013, AT&T consistently closes between $38 and $39 per share. Some commentators regard AT&T stocks as blue chip stocks at its best.
Looking to sign up for AT&T U-verse? AT&T regularly gives exceptional promotions for new clients and also permits others to market U-verse discounts and offers. Customers are able to use sites like http://couponcodecity.wordpress.com to get a fantastic discount code and help save on a new AT&T U-verse service.