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AT&T profit beats Street on customer additions

(Reuters) - AT&T Inc reported a better-than-expected quarterly profit as the second-largest U.S. wireless carrier added both postpaid and prepaid customers.

AT&T's shares were up 2.4 percent at $34.75 in extended trading on Thursday.

The company said prepaid net additions were 331,000 in the second quarter, while analysts polled by market research firm FactSet StreetAccount expected the company to lose 27,000 customers.

AT&T said it had 410,000 postpaid net additions in the quarter ended June 30 and the average revenue per contract phone user rose 6.1 percent from a year earlier.

The company, which in May last year offered to buy DirecTV for $48.5 billion to create the largest U.S. pay TV company, is close to wrapping up its deal as U.S. telecom and antitrust regulators signaled a green light for the merger.

Last month, the company had extended the "termination date" of the merger agreement with DirecTV for "a short period of time," the second time in two months.

The company said net income attributable to the company fell to $3.04 billion, or 58 cents per share, in the second quarter, from $3.55 billion, or 68 cents per share, a year earlier.

Excluding items, AT&T earned 69 cents per share.

The company's revenue rose to $33.02 billion from $32.58 billion.

Analysts on average had expected earnings of 63 cents per share and revenue of $33.05 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Maju Samuel)

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