AT&T Adds 3.8M Total Wireless Subs, Sheds 658K Video Subs in Q4
DALLAS -- AT&T Inc. (NYSE:T) reported strong Mobility and WarnerMedia results in the fourth quarter, including solid domestic wireless service revenue growth with record fourth-quarter wireless service margins. (On a GAAP basis, domestic service revenues declined 3.0%; however, on a comparable basis, service revenues grew 2.9%.)
North America Wireless Highlights:
3.8 million total wireless net adds:
- 2.8 million in U.S., driven by connected devices and smartphones
- 1.0 million in Mexico
Operating income up 3.1% on a comparable basis; EBITDA up 1.9%
- Service revenues up 2.9% on a comparable basis; operating income up 18.7% with EBITDA up 13.3% on a comparable basis
- 147,000 phone net adds in the U.S. -- 134,000 postpaid phone net adds; 13,000 prepaid phone net adds
- 467,000 branded smartphones added to base
- Focus on profitability and reduced promotions leads to losses in video subscribers
- More than 11 million customer locations passed with fiber
Consolidated Financial Results
AT&T's consolidated revenues for the fourth quarter totaled $48.0 billion versus $41.7 billion in the year-ago quarter, up 15.2%, primarily due to the Time Warner acquisition partially offset by the impact of ASC 606 which includes the policy election of netting of approximately $980 million of USF revenues with operating expenses. Without the accounting change, revenues were $48.9 billion, an increase of 17.2% primarily due to the Time Warner acquisition. Declines in legacy wireline services, wireless equipment, domestic video and Vrio were more than offset by WarnerMedia and growth in domestic wireless services and Xandr.
Cash from operating activities was $12.1 billion, and capital expenditures were $4.2 billion. Capital investment included about $270 million in FirstNet capital costs and $1.1 billion in FirstNet capital reimbursements. Free cash flow — cash from operating activities minus capital expenditures — was $7.9 billion for the quarter.
AT&T Inc. (NYSE: T)