Pro forma revenue for the fourth quarter, adjusted for extraordinary items such as the deconsolidation of results from [email protected], declined by 6.1%.
AT&T's reported revenue of $12.59bn (£8.91bn) for the quarter represents a decline of 9.5% over the same period a year ago. Though the company showed a pro forma gain, it will report a loss on continuing operations of $1.39bn (£984m).
The company took a $1bn (£708m) charge against earnings for restructuring in the fourth quarter. AT&T laid off 5,100 employees in 2001 and planning to cut around 5,000 more jobs this year, mainly in its management divisions.
For the full year, AT&T reported earnings of $9.1bn (£6.4bn), reflecting the $13.5bn (£9.5bn ) post-tax gain from the spin-off of AT&T Wireless Services in 2001.
AT&T is still losing revenue in long distance voice services. However, the company said, the decline in voice service revenue was offset by growth in cable telephony, high-speed data and Internet services, and its local phone service.
The company said it expects long-distance service revenue from business and consumer customers to decline further in 2002, with a slight acceleration in the first quarter of 2002.
AT&T expects first quarter earnings per share from continuing operations to be in the range of $0.02 to $0.05.
With an agreement reached in December to sell its cable television business to Comcast and plans to spin off its consumer long distance service as a separate tracking stock, the AT&T of the future will probably look very different.