Mobile operation costs hinder AT&T
Profits in AT&T’s second quarter financial results have decreased due to high operating costs from mobile operations, the Financial Times reports.
The US’ largest telecoms group reported an overall profit of $3.82 billion for the second quarter, and an additional net 551,000 monthly contract customers.
This profit is a decrease from last year’s figure of $3.9 billion, but the company did see a significant increase in contract customers from last year’s 320,000.
AT&T has been investing heavily in its mobile unit, with the roll-out of its 4G LTE network, which is thought to have fuelled much higher data traffic from smartphones.
Despite this surge in mobile growth, AT&T’s additional customers in the sector fair badly in comparison to Verizon’s reported 941,000 for the same period.
AT&T’s wireless revenue increased 5.7% for the second quarter, a statistic indicating the company’s confidence in the sector, following reports earlier this month that it is to acquire Leap Wireless.