AT&T reported Q1 net income was $2.8 billion, up from $1.4 billion in the first quarter of 2006, and reported earnings per diluted share were $0.45, versus $0.37 in the year-earlier quarter. Q1 consolidated revenues totaled $29.0 billion, versus a reported $15.8 billion in the year-earlier first quarter. 
It was the first full quarter of operations following AT&T’s acquisition of BellSouth, with 100% ownership and consolidation of Cingular.
Selected highlights:
- Broadband: In broadband, there were 691,000 net DSL adds, 90% of them consumer, giving AT&T an installed based of 12.9 million in service.
- 42% of DSL customers receive speeds of 3 Mbps or more.
- 33.7% of AT&T’s consumer primary lines also have broadband service, compared to 26% a year ago. In California and Nevada, broadband penetration of primary consumer lines is now 42%.
- Primary consumer lines declined by 285,000 in the quarter, compared to 331,000 in the preceding quarter and 251,000 in the year-ago quarter.
- Added 187,000 video subscribers in Q1, giving a total of 1.7 million video subs for satellite TV and U-verse.
- U-Verse: At the end of the first quarter, AT&T had 13,000 U-verse video subscribers. The current number has grown to 20,000 up from 3,000 at the beginning of the year. U-verse installs per week ramped quickly in the first quarter, increasing from about 400 in January to about 2,000 currently. AT&T expects We expect that to ramp throughout the year, reaching 10,000 installs per week by the end of the year. Best of all, more than 80% of our U-verse subscribers are taking higher-end video packages and 65% are taking our highest-speed broadband service, both of which will drive revenues per customer.
- Wireless: AT&T’s total wireless revenues grew 11.2 percent in the first quarter to $10.0 billion. Service revenues, which exclude revenues from sales of handsets and accessories, grew to $9.1 billion, up 13.5 percent versus the year-earlier quarter, reflecting solid subscriber gains and robust growth in data revenues.
- AT&T’s wireless subscribers increased by 1.2 million in the first quarter to reach 62.2 million, up 6.4 million, or 11.5 percent, over the past year. More than 70 percent of first-quarter net adds were retail, and more than 80 percent of those were postpaid. AT&T’s gross wireless subscriber additions totaled 4.3 million in the first quarter versus 4.7 million in the year-earlier period.
- Enterprise: Total revenues from enterprise customers declined 4.4 percent versus the year-earlier first quarter. Excluding CPE revenues and results from acquired and divested assets, recurring service enterprise revenues declined 3.4 percent in the first quarter, compared with declines of 3.6 percent in the fourth quarter of 2006 and 5.0 percent in the first quarter of 2006.
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