AT&T announces strong Q2 2008 results

Today AT&T announced its quarterly earnings figures, highlighting a number of positive growth statistics in its wireless business.

AT&T Wireless reported a net increase of 1.3 million new subscribers for the quarter, up to 72.9 million total, while boasting a respectably low churn rate^(INFO) of 1.1%. Compared with Q2 of 2007, wireless revenues are up 15.5% to US$12 billion, while data service revenue is up 52% year over year, coming in at $2.5 billion. Overall, AT&T's wireless unit's operating income is up 91% from the prior year, totalling an impressive $3.1 billion.

Some of the reasons behind all the good financial news are a three-fold year-over-year increase in text message use, and a 170% increase in the use of MMS. The company also claims that 18% of its subscribers have an "integrated" device, which is code for smartphone, and that such users generate roughly double the amount of money that non-smartphone users do. Speaking of smartphones, AT&T has said that the new Apple iPhone 3G has been selling very well, with sales level nearly double that of the original iPhone for the same initial 12 day period.