AT&T is more than happy with its latest Third Quarter Results totaled $30.9 billion, net income attributable to AT&T was $3.2 billion, diluted earnings per share totaled $0.54 and cash from operating activities totaled $9.7 billion.

Wireless Highlights
AT&T delivered strong wireless growth in the third quarter as customers continue to respond positively to AT&T’s extensive network capabilities, attractive devices and broad access to applications. Highlights included:

Best-Ever Third-Quarter Subscriber Gain. Total wireless subscribers increased by 2.0 million in the third quarter — up slightly from results in the year-earlier quarter and up 48.1 percent versus net adds in the second quarter of this year. Retail postpaid net adds totaled 1.4 million — the second highest third-quarter total in the company’s history, behind only the third quarter of 2008, which included a strong iPhone 3G launch — and were up 20.1 percent versus results in the second quarter of this year.

Strongest Integrated Device Quarter To Date. Postpaid 3G integrated wireless devices added to AT&T’s network in the third quarter totaled 4.3 million, the largest quarterly increase in the company’s history. Over the past year, the number of postpaid integrated devices on AT&T’s network more than doubled, and at the end of the third quarter, 41.7 percent of AT&T’s 63.4 million postpaid subscribers had integrated devices.

Continued Robust Growth in Wireless Data Revenues. Wireless data revenues — from messaging, Internet access, access to applications and related services — increased $916 million, or 33.6 percent, from the year-earlier third quarter to $3.6 billion, more than double the company’s total in the third quarter two years earlier. Data represented 29.4 percent of AT&T’s third-quarter wireless service revenues, up from 24.2 percent in the year-earlier quarter and 18.4 percent in the third quarter of 2007. Wireless text messages on the AT&T network exceeded 120 billion, nearly double the total for the year-earlier quarter. Internet access and media bundle revenues also continued their strong growth.

Seventh Consecutive Quarter of Postpaid ARPU Growth. Driven by strong data growth, postpaid subscriber ARPU increased 3.8 percent versus the year-earlier quarter to $61.23. This compares with 2.3 percent year-over-year growth in the second quarter of this year and marks the seventh consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU.

Wireless Margin Strength. Wireless service revenues grew 10.0 percent to $12.4 billion in the third quarter, and AT&T delivered substantial year-over-year margin expansion and sequential margin stability. Margins reflect churn improvements, operational execution to improve operating efficiencies in network and support systems, and further growth in the company’s base of high-quality integrated device subscribers. These factors offset increased acquisition costs associated with the company’s record quarter for iPhone activations. In the third quarter, wireless operating expenses totaled $10.3 billion, up 0.5 percent versus the year-earlier quarter and up 2.0 percent sequentially. Wireless operating income was $3.4 billion, up 41.2 percent versus the third quarter of 2008 and up 6.6 percent sequentially. AT&T’s wireless operating income margin was 24.6 percent, versus 18.9 percent in the year-earlier quarter and 23.8 percent in the second quarter of this year. AT&T’s wireless OIBDA service margin was 38.5 percent, compared with 33.5 percent in the year-earlier quarter and 38.3 percent in the second quarter of 2009. AT&T’s longer-term outlook for its wireless OIBDA service margin continues to be in the mid-40 percent range. (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues.)