NEW YORK, June 6 AT&T Inc said on Thursday
it expects to report net wireless subscriber additions of about
500,000 for the second quarter, an improvement on its
disappointing first quarter.
For the first quarter AT&T added 296,000 net subscribers,
including 365,000 new subscribers using tablet computers and a
net loss of 69,000 higher-value phone subscribers.
The No. 2 U.S. mobile service provider did not break out its
second-quarter phone and tablet subscriber numbers in its
statement issued ahead of an analyst meeting that evening.
It said that strong consolidated customer additions and
investments in new growth opportunities would result in a
year-over-year decline in second-quarter consolidated margins,
which include both landline and wireless communications
While strong subscriber growth helps revenue it can hurt
margins because it adds upfront costs as wireless service
providers such as AT&T have to spend money for each new customer
The company said that higher gross customer additions and an
unchanged smartphone upgrade rate would result in wireless
margins based on earnings before interest, tax, depreciation and
amortization or EBITDA that are comparable to the first-quarter.
It also said it is seeing stronger U-verse broadband and TV
subscriber growth than in the second quarter a year ago but it
did not give specific numbers.
AT&T received a distribution of about $500 million from YP
Holdings LLC, where it holds a minority stake, and about $550
million from its recent sale of shares in America Movil
AT&T shares fell almost 1 percent to $35.50 in late trade
after closing at $35.81 on the New York Stock Exchange.