Sales of Smartphones Keep AT&T Growing

AT&T reported a 2.5% year-on-year increase in revenues to 33 billion US dollars in the third quarter, lifted by a 4.9% increase in wireless revenues. However, a 44% increase in wireless equipment revenues (primarily the sale of smartphones) accounted for all of that growth - wireless service revenues actually fell 0.2%.

Across the first nine months, AT&T also reported a 2.5% in revenues to 98 billion dollars. In 2014, the giant US telco has, so far, spent 16.83 billion dollars on capex - a 8.1% increase on the previous year. That represents a fairly aggressive capex-to-revenue ratio of 17% source: AT&T statement