True to its word, AT&T Inc. (T) took an almost-$1 billion charge on its first-quarter earnings because of the new federal health care law.
AT&T said in late March the hit would come about because the government money it receives for retirees’ Medicare Part D drug coverage will become taxable in 2011.
But despite the $995 million charge, AT&T’s earnings still managed to beat analysts’ expectations. Profit totaled $2.48 billion, although that was down 21 percent from $3.13 billion last year because of the charge. Revenue, however, jumped .3 percent to $30.65 billion. Wireless sales increased 10 percent and, predictably, wireline voice revenue plunged – this time by 12 percent.
AT&T added 1.9 million new wireless subscribers, thanks in large part to the exclusive iPhone arrangement with Apple Inc. (AAPL), for the largest first-quarter gain in its history. What’s notable, though, is that a mere 513,000 of those additions came on the valuable postpaid side.
“Our expectation is that postpaid customer growth and net additions will come down from prior levels,” CEO Randall Stephenson said in a conference call. “But we are seeing a continuing shift in revenue growth in higher wireless data revenues and penetration of integrated devices.”
What led to @MNJTechnologies winning over a customer from a major carrier? It wasn't just cost. goo.gl/fb/Zt3swJ
February 19 2019 @ 23:50:48 UTC
.@PaloAltoNtwks acquiring @demistoinc in $560 million deal. #cybersecurity goo.gl/fb/JNAueT
February 19 2019 @ 23:36:20 UTC
.@Windstream facing tough financial decisions after court defeat. #bankruptcy goo.gl/fb/yGDkpZ
February 19 2019 @ 21:25:30 UTC
.@jenneinc rolls out new #cloud commissions dashboard for cloud partners. goo.gl/fb/jmF5kh
February 19 2019 @ 20:32:09 UTC
Scroll through the gallery for the latest updates in the #channel --> bit.ly/2tjkmJF
February 19 2019 @ 16:53:02 UTC
#CoffeeWithCraigAndKevin welcome @S1Xaa and @ChoiceIoT to the #podcast. goo.gl/fb/rNZbXd
February 19 2019 @ 14:54:30 UTC
Channel happenings galore at @ComcastBusiness @alticeb2b_usa @SpectrumEntUS @Mediacom_Biz goo.gl/fb/J8mBzw
February 18 2019 @ 13:49:23 UTC
.@CatoNetworks and @symantec made the news this week. So did @ATTBusiness. goo.gl/fb/yPWRMa
February 15 2019 @ 20:08:03 UTC