By Graham Hayday, 23 July 2002 15:40
NEWS AT&T has posted a $12.7bn loss for its second-quarter - but even that was better than it had feared. A large dent was put in its figures by a write down of $13.1bn in the book value of the AT&T Broadband cable unit, which is being sold to Comcast in a deal expected to close later this year. Without that write down, AT&T would have shown a profit of seven cents per share from its core operations consisting of long-distance, cable and business services - better than analysts had expected. Revenue for the quarter was $12.1bn, a decline of 6.2 per cent compared to the year-ago quarter, primarily due to continued declines in long distance voice services, the company said. The quarter's declining revenue was partially offset by growth at AT&T Broadband, especially in telephony, high-speed data and digital video, and growth areas of AT&T Business, in particular IP traffic and managed services. AT&T chairman and CEO C. Michael Armstrong said in a statement: "Given ongoing weakness in the economy and instability among some players in the telecommunications industry, I'm pleased with our second quarter results. We continue to execute with purpose and integrity."
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