Cingular Q4 profit nearly quadruples on customer growth during winter holidays
January 25th, 2007The wireless division of AT&T posted a net income of $782 million a 283% increase over 2005–and its best ever net subscriber additions.
Low churn and strong gross additions of 5.5 million led to net subscriber growth of 2.4 million, a record for Cingular Wireless.
Fifty-three percent growth in data ARPU helped overall ARPU increase approximately 1%, which represented the second straight quarter of ARPU growth for Cingular.
Despite large capital outlays to improve its network, the combination of high net income, subscriber additions, and solid growth in data ARPU led to an increase in total revenue, which climbed 10.2%.
At the end of the fourth quarter of 2006, Cingular boasted 61 million wireless subscribers, the largestbase among U.S. network operators. The total increase in the number of customers over the previous year was 6.8 million.
Our last quarter as a joint venture operating under the Cingular name was our best ever on a variety of fronts. We achieved strong results by delivering on four strategic initiatives – build the best network, offer great products and services, create unmatched distribution and improve customer service. Backed by the scale, scope and capabilities of AT&T, we will continue to focus on these initiatives and offer our customers the flexibility and freedom of wireless services.
The company, which was rebranded under the AT&T Inc. name last week, was a joint venture of Atlanta-based BellSouth Corp. and AT&T before AT&T completed its $86 billion purchase of BellSouth last month. The wireless company will report earnings as part of the parent company in future quarters.
