updated 05:02 pm EDT, Tue July 23, 2013
Company notes incredible growth in pay-as-you-go plans
AT&T today reported continued earnings gains for the second quarter, with increasing revenue growth driven by strong mobile data growth, solid postpaid net adds and continued strong gains in wireline consumer and U-verse services. AT&T's consolidated revenues totaled $32.1 billion, up 1.6 percent versus the year-earlier quarter. Second-quarter 2013 net income attributable to AT&T totaled $3.8 billion compared to $3.9 billion in the year-earlier quarter, down 7.6 percent.
Total wireless revenues, which include equipment sales, were up 5.7 percent year-over-year to $17.3 billion. Wireless service revenues increased 4.1 percent in the second quarter, to $15.4 billion. Wireless data revenues increased 19.8 percent from the year-earlier quarter to $5.4 billion. Second-quarter wireless operating expenses totaled $12.6 billion, up 11.8 percent versus the year-earlier quarter, and wireless operating income was $4.7 billion, down 7.7 percent year-over-year.
AT&T posted a net increase in total wireless subscribers of 632,000 in the second quarter. Subscriber additions for the quarter included postpaid net adds of 551,000, the best second-quarter postpaid net adds in four years and a more than 70 percent increase from the year-ago quarter.
Second-quarter wireless margins reflect record second-quarter smartphone sales, strong upgrades and further revenue gains from the company's smartphone subscriber base. AT&T's second-quarter wireless operating income margin was 27.1 percent versus 31 percent in the year-earlier quarter.
The company noted second-quarter 2013 cash from operating activities totaled $9.5 billion, and capital expenditures totaled $5.5 billion. Free cash flow totaled $4.0 billion. Over the last quarter, the company completed its second 300 million share repurchase authorization and began buying back shares under its third 300 million share authorization. The company repurchased 89 million shares for $3.3 billion in the second quarter. At the end of the quarter, 272 million shares remained on the current authorization.