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AT&T Wireless Reports Surge In Quarterly Profit And Revenue

Sales grew more than 6% and profits exceeded expectations as the wireless carrier added more than a half-million customers.
SEATTLE (AP) -- AT&T Wireless Inc. reported quarterly profits on Wednesday that surged past analysts' expectations as the wireless telecommunications company added nearly half a million customers in the slowing market.

For the April-June quarter, the Redmond, Wash.-based company reported a profit of $222 million, or 8 cents a share, compared to $19 million or 1 cent a share for the year-ago period.

The company also announced revenue of $4.16 billion, up 6.3 percent from $3.91 billion last year.

Analysts polled by Thomson First Call projected earnings of 4 cents a share on revenue of $4.05 billion.

John McCabe, AT&T Wireless chief financial officer, credited the company's quarter to adding customers and managing expenses.

In recent months, AT&T Wireless has been brokering deals with other carriers to reduce the costs it pays when customers travel outside AT&T Wireless' network and "roam" onto other carriers' networks.

In addition, AT&T Wireless is seeking to reduce costs by moving administrative and other corporate workers to its regional offices in Redmond, Wash., and in New Jersey/New York.

The company added 446,000 customers in the quarter, bringing its total subscriber base to 21.5 million, up 7.7 percent from last year.

The company said it expects its subscriber services revenue--which excludes revenue from wireless phone and device sales--to grow near the high range of 5 to 7 percent for the full year. It also expects capital expenditures to total around $3 billion for the year.

For the six months ended June 30, AT&T Wireless reported a profit of $357 million, or 13 cents a share, compared to a loss of $159 million, or 6 cents a share for the same period a year ago.

For the six-month period, the carrier reported revenue of $8.1 billion, up 7.5 percent from $7.5 billion last year.