More than 2 million new consumers signed up for AT&T’s wireless or high-speed broadband service between April and June this year, helping to lift the company’s revenue 1.6 percent to $32.1 billion.
But higher operating expenses caused second-quarter profits to dip slightly to $3.82 billion, or 71 cents per share, compared with $3.97 billion, or 66 cents per share during the same time a year ago, the company said late Tuesday afternoon.
Operating expenses were $26 billion for the quarter, ending June 30, compared with $24.8 billion during the second quarter a year ago.
More than half of the new customers were for Atlanta-based AT&T Mobility, the nation’s No. 2 wireless carrier. AT&T added 1.2 million new smartphone customers and saw a 20 percent increase in data revenue from mobile devices, which include tablets. The company also boasted robust growth of its mobile devices that operate on its 4G LTE network.
Sales from wireless products, including mobile phones and tablets, rose 5.7 percent to $17.3 billion.
“This was a solid quarter for revenue and customer additions across our key growth platforms,” said Randall Stephenson chairman and chief executive officer of Dallas-based AT&T.
From a business standpoint, the second quarter was one of the busiest for AT&T. The company announced it was adding a new high-tech innovation center in Atlanta. The so-called Foundry will focus on bringing to market the next generation of wireless products to better monitor your home or help you drive safely.
AT&T was one of the nation’s three major mobile phone carriers to start new programs that allow consumers to upgrade their smartphones faster than the industry standard of every two years.
The company also agreed to buy prepaid mobile phone rival Leap Wireless International for about $1.2 billion in cash. The deal will give AT&T access to so-called spectrum, the airwaves that wireless carriers need to make their mobile service work. It also will give the company a stronger presence in the prepaid wireless phone market.