SBC Thursday reported net income of $1.2 billion for the third quarter of 2005, down from $2.1 billion in the same quarter of 2004.
However, SBC results in the third quarter of 2004 were aided by the sales of telephone directory operations, which netted the company $827 million. Not counting income from discontinued operations in the third quarter of 2004, SBC’s income from continuing operations rose 0.1%.
SBC, based in San Antonio, Texas, posted earnings per share of $0.38. Earnings per share were $0.47 on income of $1.5 billion before taking out merger- and hurricane-related costs at Cingular Wireless, which SBC co-owns with BellSouth. Analysts polled by Thomson First Call expected earnings of $0.41 per share. Cingular merged with AT&T Wireless in late 2004.
The telecommunications carrier’s revenue was up slightly, from $10.29 billion in the third quarter of 2004 to $10.32 billion.
SBC, in the midst of acquiring competitor AT&T, called its third-quarter financial results “strong.” The company saw a 528,000-person net increase in DSL customers, its largest quarterly increase, SBC said. SBC also had a 10.1% increase in wireline data revenue, driven by growth in broadband and business services.
SBC net income for its all wireline operations was $1.5 billion in the third quarter, which ended Sept. 30. Net income for wireline operations was $1.1 billion in the third quarter of 2004.
Cingular posted third-quarter revenue of $8.7 billion, up more than 6% from pro forma revenue of $8.2 billion in the third quarter of 2004. Cingular had not yet completed its merger with AT&T Wireless in the third quarter of 2004.
Cingular’s third-quarter income was $326 million. Cingular, before the AT&T Wireless merger was completed, had third-quarter 2004 income of $142 million.
