AT&T has announced their Q2 financial results, and though they beat market expectations, they’re still fairly lukewarm. $3.2 billion in net income is down from $3.7 at the same time last year, but up marginally from $3.1 billion last quarter. Total revenue was around $30.7 billion and net additional subscribers number 1.2 million.
My big question is how iPhone sales in particular factor into the results; did the 3GS save AT&T from losing more money, or are the subsidies taking a significant bite out of earnings? Well, both, apparently. The release states that “increased operating expenses in the second quarter of 2009, in part, reflect volume-based acquisition costs associated with the success of the iPhone 3GS launch.” It’s safe to presume that the investment will pay off in future quarters as iPhone users rack up their higher-than average data bills.