AT&T posts 26 per cent surge in Q2 earnings; ups 2010 outlook

AT&T Inc, the largest telecommunication services provider in the US, reported yesterday a 26 per cent increase in its Q2 earnings in 2010 over the previous year, spurred by continued mobile broadband growth including iPhone activations, and IP-based and business services.

Net income for the June quarter reached $4-billion or $0.68 per diluted share from $3.2 billion or $0.54 per share registered for the same quarter in 2009. Excluding a one-time profit of $0.07 per share achieved through the exchange of shares in two Mexican telecom operators, the earnings were 13 per cent higher at $0.61 per share compared to last year.

The company's consolidated revenues for the quarter increased marginally to $30.8 billion, up $194 million or 0.6 per cent which was just below the street expectation of $30.9 billion.

Operating margin increased to 19.8 per cent from 18-per cent in the corresponding quarter last year.

Based on promising trends, the telecom giant raised its earnings outlook for the full-year from the earlier ''stable-to-improved earnings per share'' to ''strong earnings per share,'' improved margins and free cash flow above 2008 levels.

AT&T chairman and chief executive officer Randall Stephenson said, ''We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year.''