AT&T Q1 2013 earnings $37 billion income on revenue of $314 billion

AT&T just posted its earnings for the first quarter of 2013, and the market couldn't help but ding the company, which is now trading down in after hours markets. The business as a whole posted a net income of $3.7 billion, which is slightly up from $3.6 billion one year ago. Meanwhile, company revenues took a slight hit, which sit at $31.4 billion -- down 1.4 percent from the previous year. In terms of the company's wireless business, though, there's plenty of reason for optimism. The company was able to snag an additional 296,000 postpaid subscribers and put a solid 1.2 million people on smartphone plans during the quarter. For those keeping track, smartphone sales now account for 88 percent of AT&T's postpaid handsets. Unsurprisingly, the company is making more money than ever off of its data plans, which account for $5.1 billion of the company's business. As for the wireless segment as a whole, income is up 21 percent and AT&T is pulling in revenues of $16.6 billion with a 28 percent profit margin.

Encouraging signs were also revealed for U-verse, as the company's broadband service netted an additional 731,000 internet subscribers and 232,000 television subscribers during the quarter -- its best performance in two years -- for a grand total of 8.7 million subscribers. Naturally, one segment of Ma Bell's business isn't looking too hot, and that's the traditional wireline business, as revenues have fallen 10 percent from the previous year. Given the size of this segment, and the weakening demand for the service, it's easy to understand why investors might be slightly uneasy, even in light of all the encouraging news.