Wireless Drives AT&T Growth

Company posts 22% increase in net income for Q1 despite dip in landline earnings
By Laila Weir,  Newser User
Posted Apr 22, 2008 2:43 PM CDT
Consumers wait in front of a Little Rock, Ark., AT&T Wireless store, June 29, 2007, to be first in line to buy a new Apple iPhone. The iPhone has helped drive strong wireless business growth.   (AP Photo/Danny Johnston)
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(Newser) – AT&T posted a 22% increase in net income during the first quarter, thanks to strong growth in its wireless unit. Its wireless earnings nearly doubled, while landline earnings dropped 2.1%. The company’s net income was $3.46 billion (57 cents a share), compared to $2.85 billion (45 cents a share) a year ago, reports the Wall Street Journal.

The results include charges connected to acquisition expenses and landline unit layoffs. Revenues at the wireless business went up 18%, driven by additional subscribers and an increase in average revenue per subscriber. Wireless data services also saw rapid growth, going up 57% to reach 22% of the company’s wireless service revenue.