AT&T Inc has reported a 26% increase in net income to $4 billion in the second quarter of 2010 compared to second quarter of 2009. The growth in income was mainly due to high demand for Apple's iPhone and other Smartphone, the company said on Thursday.
The wireless division of the company reported a net increase of 1.6 million customers during the quarter. The number of wireless customers for the company has touched 90.1 million.
The revenues for the company rose 0.6 percent to 30.8 billion compared to last year. Revenues from wireless division rose to $13.2 billion from just under $12 billion in the second quarter of 2009.
"These results add to our confidence going into the second half of the year," Randall Stephenson, AT&T chairman and CEO, said in a statement.
"We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband," he added.
AT&T is the exclusive carrier for Apple Smartphones in the US. The company added 3.2 million iPhone activations during the quarter. Apple released its new iPhone 4 on the network which further pushed up growth for the company. Overall the comoany added 496,000 postpaid subscribers during the quarter.
The company was also able to reduce its expenses by 2% compared to second quarter of 2009. The Earnings per share for the quarter was above expectation at $0.68.
The revenue from wireless data, which includes internet access and messages, has increased by more than 27 percent, according to the company. The users sent 154 billion text messages during the quarter.
The company has changed its data service plans and limited how much its customers can browse the Internet, stream music or videos and send and receive email on their smart phones in order to reduce the price of plans and attract new customers.
The revenue from wireline consumer also recorded growth by 1.1 percent in the quarter. Its total wireline customers now total 2.5 million. The Internet Protocol revenue, including U-verse TV, broadband and voice account for 40.4 percent of consumer wireline revenue.
