International News

(Telecompaper) AT&T reported a net loss of USD 6.7 billion or USD 1.12 per share for the fourth quarter, hurt by one-time charges for ending its deal to buy T-Mobile USA as well as pensions accounting and a directories impairment. Excluding the charges, EPS fell to 42 cents from 55 a year ago. Revenues were up a solid 3.6 percent to USD 32.5 billion, supported by record smartphone sales. The launch of Applle's iPhone 4S helped AT&T sell 9.4 million smartphones in the quarter, up nearly 60 percent from a year ago and more than double the number in Q3. In terms of subscribers, AT&T added a net 2.5 million lines in the three months, for a total 103.2 million at year-end. The smartphone growth however put pressure on margins, with adjusted operating profit falling to USD 4.4 billion from USD 5.6 billion a year earlier. AT&T said it aims to return to mid single-digit or better earnings growth in 2012, with group and wireless margins improving and wireline margins stable. The company noted that "little economic lift is assumed with these expectations". Capex is expected be stable this year, at around USD 20 billion, as increased wireless spending offsets lower wireline spend. Free cash flow is forecast at USD 15-16 billion in 2012, versus USD 14 billion last year, and AT&T announced it's starting a buyback of up to 300 million shares.