AT&T Swings Back To Profit, But Sees Stiffer Competition Ahead

AT&T (T) posted strong Q4 results and swung to profit for 2013 with an income of $12.2 billion for the year compared to the $6 billion loss that the telecom carrier suffered a year ago. For the quarter, the mobile operator registered a remarkable $6.9 billion in profit relative to $3.9 billion in loss in the year ago quarter.

While the company is learning to deal with revitalized players, competition with close foe T-Mobile (TMUS) is intensifying as these major players are continuously fighting for more subscribers. As the current mobile market is almost saturated, carriers are trying to woo away customers from rival network.

But AT&T managed to top street expectations by recording $33.2 billion in revenue for the entire year. The growth was driven by its wireless business, TV and internet services.  The company is also happy to record its lowest fourth quarter churn rate of 1.11%.

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