Ladies and gentlemen, thank you for standing by. Welcome to the AT&T first quarterly earnings release 2010 conference call. (Operator Instructions) I would now like to turn the conference over to our host, Senior Vice President of Investor Relations for AT&T, Brooks McCorcle. Please go ahead.
Thank you Rich. Good morning everyone. Welcome to AT&T’s first quarter conference call. As Rich said this is Brooks McCorcle, head of Investor Relations for AT&T. And on behalf of everyone at our company we appreciate your interest and it’s really great to have you with us this morning.
Joining me on the call today is Rick Lindner, AT&T’s Chief Financial Officer. Rick will provide an update with a perspective on the quarter and then we’ll take your questions.
Let me remind you that our release, investor briefing, supplementary information and the presentation slides that accompany this call are all available on the Investor Relations page of the AT&T website. That’s www.att.com/investor.relations.
I also need to cover our Safe Harbor statement which is on Slide 2, and that says that information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this presentation based on new information or otherwise.
This presentation may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are also available on our website at www.att.com/investor.relations.
Before I turn the call over to Rick, let me quickly call your attention to Slide 3, which provides a consolidated financial summary. Before a previously disclosed non-cash charge, relating to the taxability of retiree healthcare subsidies, first quarter EPS was $0.59, which was up 11.3%. First quarter consolidated revenues grew year-over-year to $30.6 billion. That was supported by a double digit increase in wireless service revenues, continued mid-teens growth in strategic business products, and further AT&T U-verse gains. Consolidated margins improved both sequentially and year-over-year. We had substantial margin expansion in wireless, and wireline operating income margins were stable sequentially, reflecting solid execution in terms of our cost initiatives.
Finally, although down slightly from the first quarter a year ago, cash flow continues to be strong with cash from operating activities totaling $7.3 billion and free cash flow at $3.9 billion for the quarter.
With that quick overview, I’ll now turn the call over to AT&T’s Chief Financial Officer, Rick Lindner. Rick?