AT&T reports 149% rise in profit for 2013

US operator AT&T has reported a 149 per cent increase in net income in FY2013 to reach $18.2bn. The firm recorded net income of $7.3bn in 2012. Consolidated revenues reached $128.8bn for the year, an increase of 1.1 per cent year on year.

The firm recorded $12.2bn operating income for 4Q13, having posted an operating loss of $6bn in the same period a year earlier. Consolidated revenues also grew by 1.8 per cent to reach $33.2bn.

“We exceeded build targets across the board,” said Randall Stephenson, AT&T chairman and CEO.  “Our 4G LTE network is nearly complete and is the nation’s most reliable with lightning-fast speeds. U-verse is rapidly expanding, and our fiber-to-the-business build is off to a fast start.”

Stephenson added that AT&T’s next steps will be to make its networks more powerful and to provide services that will drive growth in the years ahead.

“We have good momentum in areas like connected car, home automation and mobile business solutions. We’re also committed to transforming our operations to make them more responsive and efficient. To that end, we’ve launched Project Agile, a broad set of initiatives to streamline and improve every part of our business. Execution has begun and will be a focus area for us in 2014 and beyond.”

Total wireless revenues grew 4.5 per cent year on year in 4Q13 to reach $18.4bn. Wireless data revenues increased 16.8 per cent in the quarter year in year to $5.7 billion.

The operator added that it had its lowest ever fourth-quarter postpaid churn; 1.11 per cent compared to 1.19 per cent in 4Q12. Total churn stood at 1.43 per cent versus 1.42 per cent in the same period a year earlier.

The operator also posted a net increase in total wireless subscribers of 809,000 in 4Q13, and 93 per cent of new subscribers (1.2 million) bought smartphones.

Earlier this month, AT&T launched an initiative that allows businesses to cover the transmission cost of content they provide to consumers. The Sponsored Data service will enable customers to view sponsored content and use apps over AT&T’s HSPA+ and LTE networks without that data usage coming out of their monthly wireless data plan.

Earlier this week, AT&T was forced to confirm to the UK Panel on Takeovers and Mergers that it does not intend to make an offer for UK operator group Vodafone, following speculation regarding a potential transaction impacting Vodafone’s share price. Vodafone later went on to announce that its shareholders have approved the sale of its 45 per cent in Verizon Wireless to AT&T rival Verizon Communications.