New York - US phone giant AT&T dialed in a 30 per cent increase in second quarter profits Wednesday as mobile phone revenue more than compensated for a steep drop in home land lines.

The Dallas-based telecommunications company reported net income of 3.77 billion dollars, or 63 cents a share, compared with a profit of 2.9 billion dollars, or 47 cents a share, a year ago. Revenue rose 4.7 per cent to 30.87 billion dollars from 29.48 billion dollars a year ago.

AT&T said that wireless revenue was up 16 per cent in the quarter with revenue from data services such as text messages and mobile email up 52 per cent.

The company added 1.3 million new customers in the quarter, down 123,000 from the increase a year ago. But its figures were hurt by a slowdown in iPhone sales as customers held off on purchases until the release of the new iPhone 3G on July 11.

The company's land line customers fell 8 per cent to 58.9 million while it added 46,000 broadband connections in the second quarter. The results sent AT&T shares up some 3 per cent to 32.49 dollars after a drop of more than 20 per cent in recent months. (dpa)