AT&T, the mobile provider, beat analyst expectations to post better-than-expected profit figures due to cost reductions in its landline business. The company, which said it was optimistic about growth prospects for 2010, had its shares rise by 3 percent.

The second-biggest mobile provider in the US experienced gradual customer growth as customers were slow to switch from rivals to purchase the iPhone. However, the company, which has exclusive rights to sell the Apple smartphone, strengthened investor sentiment by predicting strong earnings per share growth for the whole of 2010.

In an interview with Reuters, Rick Lindner, AT&T's Chief Financial Officer says that he expects earnings growth to be at "above 5 percent." He says analysts expect earnings growth at about 10 percent. Lindner adds that he expects improvements from the company's consumer landline services through U-Verse TV and broadband service.

"We expect going forward in the remainder of this year and into 2011, steady improvement (in business). But, it will be slower improvement. We're not anticipating any kind of V-shaped recovery." Lindner said.

AT&T's profits rose to $4 billion, or 68 cents per share. The figure was $3.2 billion, or 54 per share last year.