AT&T Inc, US largest phone company, posted a better-than-expected rise in quarterly profit on Tuesday, bolstered by strong growth in its Cingular Wireless joint venture and high-speed Internet services. AT&T shares rose 4 percent after the results, which analysts said showed the company appeared to be succeeding in cutting costs and taking advantage of its 60 percent stake in Cingular.
AT&T said earnings, including its stake in Cingular but excluding merger-related costs and other special items, were 58 cents a share in the second quarter, up 35 percent from a year earlier. That exceeded analysts' average forecast of 53 cents per share, according to Reuters Estimates. The company raised its forecast for full-year, consolidated operating income margin to a range of 17 percent to 18 percent, up from a previous forecast of 15 percent to 16 percent. AT&T said earnings were helped by a rise in subscribers at Cingular, which reported last week that it added 1.5 million customers in the quarter.