AT&T Inc reported a higher quarterly profit, driven by a more than 27 percent rise in wireless margins.

Net attributable income rose to $3.6 billion, or 60 cents per share, from $3.4 billion, or 57 cents per share in the year-ago quarter. Consolidated revenue rose nearly 2 percent to $31.8 billion.

The No. 2 U.S. mobile provider added 187,000 subscribers in the quarter, compared with expectations for 193,000 from six analysts surveyed by Reuters.

Its bigger rival, Verizon Wireless, reported 501,000 net additions last week.

(Reporting by Sayantani Ghosh in Bangalore; Editing by Ted Kerr)