Earnings Roundup, Part 2: Small Profit Drop For Cingular

[Mike Temporale]

http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20041020/ap_on_bi_ge/earns_cingular

"Operating profits slipped 5.5 percent at Cingular Wireless despite gains in both subscribers and revenue in what was likely the last full quarter before the company completes its $41 billion purchase of AT&T Wireless Services Inc. Cingular said Wednesday its operating profit totaled $461 million in the third quarter ended Sept. 30, down from $488 million in the same three months a year ago. Third-quarter revenue rose 4.9 percent to $4.26 billion, compared to $4.06 billion a year earlier. However, operating expenses rose 6.3 percent, including $74 million related to integration planning costs for the impending acquisition and a charge for asset adjustments. Atlanta-based Cingular does not report net income figures since it is jointly owned by BellSouth Corp. and SBC Communications Inc. Cingular's subscribers grew by 657,000 to 25.7 million during the quarter, but the gain was about 12 percent slower than the 745,000 customers added in the year-ago period."

Cingular is still going strong as the AT&T merger nears the end. We'll have to wait and see what happens once these two are full integrated. I'm sure the all new Cingular/AT&T will remain a key player in the industry for many years to come. It's just not clear long it will take to stop the mass exodus from AT&T. :wink:

[Mike Temporale]

http://story.news.yahoo.com/news?tmpl=story2&u=/ap/20041020/ap_on_bi_ge/earns_cingular

"Operating profits slipped 5.5 percent at Cingular Wireless despite gains in both subscribers and revenue in what was likely the last full quarter before the company completes its $41 billion purchase of AT&T Wireless Services Inc. Cingular said Wednesday its operating profit totaled $461 million in the third quarter ended Sept. 30, down from $488 million in the same three months a year ago. Third-quarter revenue rose 4.9 percent to $4.26 billion, compared to $4.06 billion a year earlier. However, operating expenses rose 6.3 percent, including $74 million related to integration planning costs for the impending acquisition and a charge for asset adjustments. Atlanta-based Cingular does not report net income figures since it is jointly owned by BellSouth Corp. and SBC Communications Inc. Cingular's subscribers grew by 657,000 to 25.7 million during the quarter, but the gain was about 12 percent slower than the 745,000 customers added in the year-ago period."

Cingular is still going strong as the AT&T merger nears the end. We'll have to wait and see what happens once these two are full integrated. I'm sure the all new Cingular/AT&T will remain a key player in the industry for many years to come. It's just not clear long it will take to stop the mass exodus from AT&T. :wink: