AT&T posts loss on breakup fee, benefit plan costs

The company reports a record quater for smartphone sales, driven by iPhone purchases

Though smartphone sales were strong, AT&T on Thursday reported a net loss in the fourth quarter of 2011 due to extraordinary charges including a breakup fee for the thwarted merger with T-Mobile USA.

AT&T's loss for the quarter was US$6.7 billion due to $13.4 billion in one-time charges, including $4.2 billion in charges for ending its bid to acquire rival mobile carrier T-Mobile USA.

AT&T also reported a $6.3 billion charge for its benefit plan costs and $2.9 billion for asset impairments during the quarter. The company had revenue of $32.5 billion for the quarter, up from $31.4 billion for the fourth quarter of 2010.

AT&T announced in December it would charge a $4 billion merger breakup fee during the quarter, after it withdrew its offer to purchase T-Mobile.

AT&T reported net income of $1.1 billion in the fourth quarter of 2010. Excluding one-time items, AT&T's operating income for this past quarter was $4.4 billion, compared to $5.6 billion in the fourth quarter of 2010.

The loss per share for the quarter was $1.12. AT&T's earnings per share, excluding one-time items, was $0.42, compared to $0.55 for the fourth quarter of 2010. Analyst expectations for the quarter were $0.43.

Nevertheless, AT&T officials called their results strong. It was a "blowout quarter for sales," Randall Stephenson, the company's chairman and CEO, said in a statement.

The fourth quarter was the best one ever for smartphone activations, with sales of 9.4 million devices, the company said. AT&T activated 7.6 million iPhones and added 2.5 million mobile customers during the quarter. The company's smartphone sales during the quarter were nearly double its sales during the third quarter, the company said.

Apple introduced the new iPhone 4S in early October.

AT&T's mobile revenue was $16.7 billion for the quarter, up 10 percent from a year ago. Mobile data revenue grew by 19.4 percent year over year.

AT&T's wireline division posted revenue of $14.9 billion, down 1.4 percent.

AT&T added 208,000 U-verse television customers during the quarter, to reach 3.8 million customers. The company's U-verse high-speed broadband service added 587,000 customers in the quarter to reach 5.2 million, but losses in DSL customers offset those gains. Overall, the company lost 49,000 wireline broadband customers during the quarter.

For the full year, AT&T reported net income of $3.9 billion, compared to $19.9 billion in 2010. Revenue was up slightly, from $124.3 billion in 2010, to $126.7 billion in 2011.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?