AT&T Reports Q1 Revenues of $32.6B

Carrier added 410,000 postpaid customers and 684,000 connected cars in the first quarter.

April 22, 2015

2 Min Read

DALLAS -- AT&T Inc. (NYSE:T) today reported solid first-quarter results with strong wireless net adds, best-ever first-quarter postpaid churn and strong demand for strategic business services.

“The first quarter was a significant step in a transformative year for AT&T” said Randall Stephenson, AT&T chairman and CEO. “The repositioning of our wireless customer base to no-device-subsidy plans drove industry-leading postpaid churn. IP technologies continue to transform our wireline operations, expand our broadband base and drive strong demand for strategic business services. Plus, we established a good foothold in the Mexican wireless market with our acquisition of Iusacell and we are on track to close our acquisition of Nextel’s Mexico operations shortly. This, along with our expectation that we’ll gain final approval of the DIRECTV deal in the second quarter, adds to our confidence that we’re on track to be a very different company uniquely positioned for growth.”

First-Quarter Financial Results
For the quarter ended March 31, 2015, AT&T's consolidated revenues totaled $32.6 billion, up 0.3 percent versus the year-earlier period. When excluding the divested Connecticut wireline properties, revenues were up 1.2 percent. Compared with results for the first quarter of 2014, operating expenses were $27.1 billion versus $26.2 billion; operating income was $5.5 billion versus $6.3 billion; and operating income margin was 16.7 percent versus 19.3 percent. When adjusting for employee separation and merger and integration-related expenses, operating expenses were $26.6 billion, compared to $26.1 billion in the year-ago quarter; operating income was $6.0 billion versus $6.4 billion a year ago; and operating income margin was 18.5 percent versus 19.6 percent a year ago.

First-quarter 2015 net income attributable to AT&T totaled $3.2 billion, or $0.61 per diluted share, compared to net income of $3.7 billion, or $0.70 per diluted share in the year-ago quarter. Adjusting for $0.03 for voluntary employee separations, $0.04 for merger and integration-related expenses, and a $0.05 gain from a tax item, earnings per share was $0.63 compared to an adjusted $0.71 in the year-ago quarter, which included about 3 cents of EPS from since divested assets.

Cash from operating activities totaled $6.7 billion in the first quarter and capital expenditures totaled $4.0 billion. Free cash flow — cash from operating activities minus capital expenditures — totaled $2.8 billion.

DIRECTV Transaction Update
The company still expects the acquisition of DIRECTV to close in the second quarter of this year. The company now expects cost synergies from this transaction to reach at least $2.5 billion on an annual run rate by year three after closing. This is an increase from $1.6 billion that was expected at the time the deal was announced.

AT&T Inc. (NYSE: T)

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