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* Q4 EPS, excluding items $0.44 vs Street view $0.45
* Q4 rev $32.58 bln vs Street view $32.2 bln
* CEO says may look for ways to benefit from overseas growth
* CEO says may consider smartphone installment plans
* Subscriber growth beat estimates, wireless margins miss
By Sinead Carew
NEW YORK, Jan 24 (Reuters) - AT&T Inc's fourth-quarterprofit was lower than expected but the telephone companypromised earnings and revenue growth this year even if theeconomy does not improve.
Along with growth from its existing business, ChiefExecutive Randall Stephenson said on Thursday that AT&T is alsoeyeing overseas opportunities. He said the idea would be to profit from wireless expansion in countries where services arenot yet as advanced as in the United States.
"The question is if there are opportunities for us toparticipate in that growth around the world" Stephenson said ona conference all with analysts. "There's just a lot of differentways to think about it. There's a lot of options."
Stephenson declined to say if AT&T would make overseasacquisitions in response to a question about a recent reportthat it was considering European transactions. Instead, helisted options such as international roaming deals for AT&Tcustomers traveling overseas and the possibility for overseasexpansion of a home security business AT&T is developing.
AT&T, the No. 2 U.S. mobile service provider, postedstronger than expected fourth quarter subscriber growth but thisalso put pressure on its wireless profit margin as it spendsheavily on every new subscriber it signs up.
It added 780,000 mobile subscribers in the quarter comparedwith the average expectation for 699,200 from 10 analysts, withthe lowest estimate at 475,000 and the majority of estimates at700,000 or higher.
AT&T's wireless growth was slower than bigger rival VerizonWireless, a venture of Verizon Communications andVodafone Group Plc, which reported subscriber additionsof 2.1 million on Tuesday. Sprint Nextel, theNo. 3 U.S. mobile provider, does not report its results untilFeb. 7.
AT&T's fourth quarter loss was $3.86 billion or 68 cents pershare, compared with a loss of $6.68 billion or $1.12 per sharein the year-ago quarter when it shouldered big charges includingthe break-up fee for its failed purchase of T-Mobile USA, aDeutsche Telekom unit.
Excluding unusual items earnings per share was 44 cents pershare, a penny lower than Wall Street analysts had expected,according to Thomson Reuters I/B/E/S.
"When you have better subscriber growth its understandableyour earnings miss a little," said Guggenheim Securities analystShing Yin, adding that the results overall were "acceptable."
While AT&T's sale of 8.6 million Apple Inc iPhonesin the quarter helped subscriber numbers it hurt profits as AT&Tpays Apple a big subsidy for every iPhone it sells so it canoffer discounts to customers who commit to contracts.
AT&T's wireless service profit margin based on earningsbefore interest, tax, depreciation and amortization was 29.1percent, compared with the average expectation for 31.29 percentfrom ten analysts contacted by Reuters.
Stephenson said he would keep a close watch on a strategyoutlined by smaller rival T-Mobile USA to offer smartphoneinstallment plans under which consumers would pay for theirsmartphones gradually. If it followed this plan, AT&T would nothave to pay a big upfront subsidy for phones.
"That's something we've looked at on several occasions. Ikind of like that idea," Stephenson said. "Its something we'regoing to be watching."
AT&T forecast 2013 earnings per share growth in theupper-single digit percentage range or higher and revenue growthexceeding 2 percent based on strength in wireless and itswireline consumer business. It said that the growth assumed"little improvement" in the economy.
"Guidance was good but not dramatically good," said HudsonSquare Research analyst Todd Rethemeier.
Revenue rose to $32.58 billion from $32.5 billion andcompared with Wall Street expectations for $32.2 billion,according to Thomson Reuters I/B/E/S.
AT&T shares were down 2 cents in late trade at $33.73 afterclosing at $33.75 on the New York Stock Exchange.
