AT&T today announced it financial results for the third quarter of the ongoing year, which ended on September 30. The mobile carrier activated 4.7 million iPhones during the quarter, up $2 million when compared to the same quarter a year ago. With the 4.7 million iPhone activations, the wireless carrier managed to add a number of 1 million new wireless subscribers over the previous quarter, which helped it represent around 77% of total smartphone sales of 6.1 million.
The carrier also announced an increase in smartphone sales, but noted that the postpaid sales were impacted by iPhone 5 inventory constraints where there was considerable pent-up demand.
AT&T sold 6.1 million smartphones in the third quarter, 1.3 million more than in the third quarter a year ago. Smartphones represented 81 percent of postpaid device sales. At the end of the quarter, 63.8 percent, or 44.5 million (Verizon has 34.8 million), of AT&T’s postpaid subscribers had smartphones, up from 52.6 percent, or 36.1 million, a year earlier and up 1.4 million from the second quarter.
In the quarter, the company activated 4.7 million iPhones, with 18 percent new to AT&T. The company also had its best-ever sales quarter for Android and Windows smartphones.
During the third quarter of the ongoing year, the wireless carrier registered consolidated revenue totaled $31.5 billion, flat versus the year-earlier period. AT&T posted net income of $3.6 billion, or $0.63 per diluted share for the time frame, compared to $3.6 billion, or $0.61 per diluted share, reported in the same quarter a year ago. That’s a 5 percent increase year over year.
When adjusted for Advertising Solutions, EPS was $0.62 compared to $0.59 in the year-ago quarter. Operating income was $6.0 billion, down from $6.2 billion; and AT&T’s operating income margin was 19.2 percent, compared to 19.8 percent.
AT&T’s stock was listed at $34.83, down $0.17, or 0.50 percent, on the New York Stock Exchange in late morning trading.