US operator AT&T reported better-than-expected third-quarter profit today thanks to a strong showing in its mobile division, which was boosted by sales of Apple’s iPhone. Net income for the quarter totalled US$3.2 billion, flat compared to both the year-earlier and previous quarters. Earnings per diluted share totaled US$0.54, compared with US$0.55 a year ago and US$0.54 in 2Q09. This beat the US$0.50 average of analysts’ estimates compiled by Bloomberg. However, third-quarter revenue dropped 1.6 percent from a year ago to US$30.9 billion. As has been the case for several successive quarters, growth in the operator’s mobile business continued to offset weaknesses in other areas. “We delivered a terrific wireless quarter, IP data growth was strong and execution across the business continues to be solid,” said Randall Stephenson, AT&T’s chairman and CEO in a statement.

Total mobile subscribers increased by 2 million in the third quarter – up slightly from results in the year-earlier quarter and up 48.1 percent versus net adds in the second quarter of this year – to reach 81.6 million in total.  AT&T said the figures represented its best-ever third-quarter net add total and the third quarter out of the past five in which it achieved total mobile net adds approaching or exceeding the 2 million mark. The iPhone – which AT&T distributes on an exclusive basis in the US – was a key factor behind the performance; AT&T said it activated 3.2 million iPhones in 3Q09 – the company’s largest quarterly total to date – with nearly 40 percent of the activations for customers who were new to AT&T. The iPhone also helped AT&T post a 33.6 percent increase in mobile data revenues to US$3.6 billion, more than double the company’s total in the third quarter two years earlier. Total mobile revenue rose 10.2 percent to US$12.372 billion.