U-verse drives AT&T wireline business

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U-verse revenues were up 38 percent year-over-year and 10.2 percent versus the previous quarter and total subscribership reached 6.8 million, according to AT&T's (NYSE: T) second-quarter 2012 financial results released today.

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                            (Source: AT&T)

"U-verse continues to drive a transformation in wireline consumer, reflected by the fact that consumer broadband, video and voice-over-IP revenues now represent 57 percent of wireline consumer revenues, up from 50 percent in the year-earlier quarter," the carrier said in its earnings announcement.

As usual, fewer new subscribers subscribed to TV (155,000) than high-speed Internet (553,000) during the quarter. Those additions were the direct result of more subscribers abandoning slower DSL for U-verse speeds.

Speed, of course, leads the way when it comes to broadband. The carrier said that more than 50 percent of its U-verse subscribers have bought into plans that deliver broadband speeds of 12 Mbps or higher. A year ago this number sat at 39 percent of all subscribers.

Click here to view AT&T's earnings-release video.

The bundle, too, continued to be the glue that holds everything together as "subscribers on triple- or quad-play options drove 18.2 percent year-over-year growth in IP revenues from residential customers (broadband, U-verse TV and U-verse Voice) and 6.2 percent sequential growth, the carrier said. About 90 percent of new U-verse TV customers also subscribed to HSI and about half took voice, AT&T said, and about three quarters of all U-verse subscribers are in triple or double play bundles.

U-verse ARPU climbed slightly to $170. Service penetration is about 17.3 percent of eligible living units.

Keeping things in perspective, AT&T still leaned heavily on its wireless business and still more loudly crowed about results there as it posted consolidated revenues of $31.6 billion that were 0.2 percent higher year-over-year.

For more:
 - see the earnings release
 - view the earnings video

Special Report: IPTV earnings in the second quarter of 2012

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