AT&T Second-Quarter User Growth Improves as Margins Shrink
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AT&T Inc., the biggest U.S. phone carrier, said second-quarter TV, Internet and mobile-phone subscriber growth is improving compared with a year earlier, while the costs to lure customers is cutting into profits.
The company expects to report that 500,000 new mobile-phone subscribers signed up for contracts during the quarter, it said yesterday in a statement. That compares with 296,000 a year earlier. While wireless profit margins will be similar to the first quarter, overall margins will decline compared with the second quarter of 2012 because of “customer additions and investments in new growth opportunities,” it said.