SBC Thursday reported net income of $1 billion for the second quarter of 2005, down 14.4% from the second quarter of 2004.
The company, in the midst of a $16 billion acquisition of telecom rival AT&T, posted operating revenue of $10.3 billion, up 1.3% from the same quarter in 2004. This is the company’s fifth straight quarter of revenue growth, officials noted.
SBC reported earnings per diluted share of $0.30, including $0.13 per share of one-time charges for costs incurred by Cingular Wireless, co-owned by SBC and BellSouth, and termination costs for agreements SBC had with telecom wholesale carrier WilTel. SBC posted earnings per diluted share of $0.34 in the second quarter of 2004.
Without the one-time charges, SBC posted earnings per share of $0.43. Analysts expected earnings of $0.37 a share, according to Thomson First Call.
SBC’s wireline revenue totaled $9.4 billion for the quarter, which ended June 30, up 1.6% from $9.2 billion in the second quarter of 2004. Wireline business revenues increased 4.8%, while consumer revenues grew 2.6%.
Cingular’s second-quarter revenue was $8.6 billion, up 5.4% versus pro forma revenue of $8.2 billion during the second quarter of 2004. The pro forma results include Cingular’s acquisition of AT&T Wireless.
Cingular’s operating income was $504 million, down from $671 million for the second quarter of 2004. Excluding one-time charges, including $445 million of noncash expenses that were part of Cingular’s merger with AT&T Wireless, second-quarter operating income was $1.2 billion, up from $705 million in the first quarter of 2005.
