by hyousef333
- Diluted EPS of $0.56 as reported compared to $0.75 in the year-ago quarter
- Adjusted EPS of $0.86 compared to $0.85 in the year-ago quarter
- Consolidated revenues of $44.8 billion
- Cash from operations of $11.1 billion, up 24%
- Capital expenditures of $5.2 billion
- Free cash flow of $5.9 billion
Q1 Results
Communications Highlights
- Mobility:
- Service revenues up 2.9%; operating income and EBITDA growth with postpaid phone and prepaid net adds
- 179,000 postpaid smartphone net adds in the U.S.
- 80,000 postpaid phone net adds
- 96,000 prepaid net adds of which 85,000 are phones
- Entertainment Group:
- 13% operating income growth with solid ARPU gains
- 6.9% EBITDA growth as company targets stability
- Focus on long-term value customer base
- 22.4 million premium TV subscribers – 544,000 net loss
- 1.5 million DIRECTV NOW subscribers – 83,000 net loss
- Nearly 300,000 AT&T Fiber gains; 45,000 broadband net adds with broadband revenue growth of more than 8%
- 12.4 million customer locations passed with fiber
WarnerMedia Highlights
- Solid revenue growth with strong operating income growth with gains in all business units
- Turner subscription revenue growth
- HBO digital subscriber growth continued as last season of Game of Thrones begins
- Strong Warner Bros. revenue and operating income growth
Latin America Highlights
- 93,000 Mexico wireless net adds
Xandr Highlights
- Advertising revenues grew by 26.4% largely due to the AppNexus acquisition
Consolidated Results
- Q1 consolidated revenues totaled $44.8 billion versus $38.0 billion in the year-ago quarter, up 17.8%, primarily due to the Time Warner acquisition.
- Operating expenses were $37.6 billion versus $31.8 billion in the year-ago quarter, an increase of about $5.8 billion due to the Time Warner acquisition and higher commission amortization from adopting new accounting standards last year, partially offset by lower wireless equipment costs and cost efficiencies.
- Operating income was $7.2 billion versus $6.2 billion in the year-ago quarter, primarily due to the Time Warner acquisition, with operating income margin of 16.1% versus 16.3%
- Q1 net income attributable to AT&T was $4.1 billion, or $0.56 per diluted share, versus $4.7 billion, or $0.75 per diluted share, in the year-ago quarter.
- Cash from operating activities was $11.1 billion, and capital expenditures were $5.2 billion.
- Capital investment – which consists of capital expenditures plus cash payments for vendor financing – totaled $6.0 billion, which includes about $800 million of cash payments for vendor financing.
- Free cash flow — cash from operating activities minus capital expenditures — was $5.9 billion for the quarter.
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