AT&T Posts 1Q Loss As Revenue Falls - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

AT&T Posts 1Q Loss As Revenue Falls

The telco reported a loss of $975 million, more than four times the $192 million loss it reported for the same period last year.

Stung by declining revenue from its business and residential long-distance voice services, AT&T said its first-quarter revenue dropped 11.3%, to $12.02 billion, from $13.55 billion a year ago.

"Revenue decline was largely driven by the ongoing weakness in the economy, industry pricing, and volume pressures," AT&T chairman and CEO Michael Armstrong said Wednesday during a teleconference. For the quarter ended March 31, AT&T reported a loss of $975 million, more than four times the $192 million loss it reported for the same period last year. The loss included an $856 million write-off of goodwill and other intangible assets required by new accounting rules, plus a $580 million pretax write-off for investment losses, according to AT&T.

Including additional revenue of $575 million to $675 million that the company expects to book during the rest of 2002 as a result of the break-up of its Concert joint venture with British Telecom, offset by $200 million to $250 million in additional losses and costs from the breakup, AT&T expects to contain its revenue decline in the second quarter to 9% or 10% below the second quarter of 2001.

In the most recent quarter, revenue from AT&T's business-services division dropped 8%, to $6.53 billion, compared with the same quarter a year ago, led by a 19% decline in its business long-distance voice revenue. Including the effects of the Concert breakup, AT&T expects its business-services revenue for the second quarter to be 4% to 6% less than its second-quarter revenue last year and, for the full year, 4.5% to 5% below 2001 revenue.

On the positive side, AT&T said its sales of packet data services such as frame relay, asynchronous transfer mode, and IP to businesses in the second quarter increased 20% over the same period last year. The company says IP services alone increased 37% compared with last year.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll