Telecommunications service provider AT&T Inc. Thursday posted a profit of $1.66 billion in its first quarterly report since it was formed by SBC Communications’ purchase of AT&T Corp. last November.
The results were boosted by an increase in customers for AT&T’s broadband Internet service and strong customer growth at Cingular Wireless, the AT&T venture with BellSouth Corp. that posted earnings earlier this week.
Like peers BellSouth and Verizon Communications, AT&T Inc. depends on services such as wireless and broadband Internet service for growth as traditional local phone lines decline.
The company said that on a reported basis, including its 60 percent stake in Cingular, it earned 46 cents per diluted share. In the year-ago quarter, SBC alone earned $688 million, or 21 cents a share.
AT&T said the numbers were boosted by a tax-related gain of $902 million and reduced by $707 million in merger costs from Cingular’s purchase of AT&T Wireless in 2004.
Excluding these items, the company said that fourth-quarter 2005 earnings were $1.71 billion, or 48 cents per share.
The merged company’s revenues, which include only about 6 weeks of revenue from AT&T Corp and excludes Cingular, was $12.97 billion, compared with SBC’s revenue of $10.29 billion a year ago.
AT&T Inc. said the latest quarter includes $2.89 billion in revenue and operating income of $118 million from AT&T Corp.
SBC bought AT&T with a view to cutting expenses and competing better for business and long-distance customers.