AT&T meets expectations with sixty seven-cent salary-per-share in Q2 2013
AT&T has announced their Q2 2013 earnings, stating that a record number of Android sales helped bring adjusted earnings of 67-cents per share on revenue at $ 32.1 billion. Randall Stephenson, AT&T chairman and CEO said in the prepared statement:
This was a solid quarter for revenue and customer additions across our key growth platform. Our 4G LTE network is the fastest and the most reliable in the nation, and deployment is ahead of schedule. That contributed to a step-up in postpaid subscriber gains, and strong mobile data revenue growth of nearly 20 percent. Growth in U-verse and strategic business services also continued to be strong — adding to our momentum.
Other highlights from the press release mention an increase of over 500,000 post-paid subscribers, and an increase of over 630,000 total subscribers for the quarter, an increase of 5.7-percent in wireless revenues to total over $ 17 billion, and a total of 35-percent of all customers using their LTE network which is expected to cover nearly 270 million people in 400 markets by year-end.
The second quarter also saw smartphone sales of almost $ 7 billion, which includes a record number of Android devices. Smartphone users now account for 88-percent of postpaid phone sales.
The full details can be found in the press release after the break, or via AT&T’s live earnings call on the web.
AT&T Reports Solid Revenue Growth on Strong Wireless Gains Driven by Quality Network Performance and Continued U-verse Growth
- $ 0.71 diluted EPS compared to $ 0.66 diluted EPS in the second quarter of 2012, up
- 7.6 percent. Excluding significant items, EPS was $ 0.67
- Consolidated revenues of $ 32.1 billion, up 1.6 percent versus reported results for the year-earlier period, and up 2.6 percent adjusting for the sale of Advertising Solutions
- More than 2 million new wireless and wireline high speed broadband connections
Nation’s Fastest and Most Reliable 4G LTE Network Driving Subscriber and Usage Growth
- 551,000 wireless postpaid net adds, best second-quarter postpaid net adds in four years
- 35 percent of postpaid smartphone base LTE capable
- Smartphone data usage per device up 50 percent year over year
- LTE network expected to cover nearly 270 million POPs in 400 markets by year-end
- LTE network build expected to be substantially complete by summer 2014
Strong Wireless Revenue Growth, Record Second-Quarter Smartphone Sales
- Wireless revenues up 5.7 percent, service revenues up 4.1 percent versus the year-ago quarter
- Wireless data revenues up 19.8 percent versus the year-earlier period
- Wireless operating income margin of 27.1 percent; wireless EBITDA service margin of 42.4 percent reflecting record second-quarter smartphone sales of 6.8 million, including record Android sales
- Added 1.2 million new smartphone subscribers; smartphones 88 percent of postpaid phone sales
- Total postpaid ARPU up 1.8 percent; phone-only ARPU up 3.0 percent
Wireline Transformation to IP Continues: U-verse® More Than 50 percent of Wireline Consumer Revenues; Strong Growth in Strategic Business Services Revenues
- Wireline consumer revenue growth of 2.4 percent versus the year-earlier period
- Total U-verse revenues, including business, up 30.1 percent year over year; U-verse more than half of wireline consumer revenues
- 9.4 million total U-verse subscribers (TV and high speed Internet) in service; 641,000 high speed Internet subscribers added; 233,000 U-verse TV subscribers added, topping 5 million
- Total wireline broadband data ARPU up 9 percent year over year
- Continued strength in strategic business services revenues, up more than 15 percent year over year
Note: AT&T’s second-quarter earnings conference call will be broadcast live via the Internet at 4:30 p.m. ET on Tuesday, July 23, 2013, at www.att.com/investor.relations.
- Consolidated Statements of Income
- Statements of Segment Income
- Consolidated Balance Sheets
- Consolidated Statements of Cash Flows
- Supplementary Operating and Financial Data
- Reconciliation of EBITDA
- Reconciliation of Free Cash Flow
- Net-Debt-to-EBITDA Ratio
- Adjusted Operating Revenues
- Reconciliation of Adjusted Diluted EPS
- Non-GAAP Discussions
AT&T Inc. (NYSE:T) as of late pronounced persevered salary positive factors for the 2d quarter with growing income boom pushed by way of robust cell information increase, strong postpaid internet provides and endured robust positive factors in wireline shopper and U-verse services and products.
“This used to be a great quarter for income and purchaser additions throughout our key increase structures,” mentioned Randall Stephenson, AT&T chairman and CEO. “Our 4G LTE community is the quickest and essentially the most dependable within the nation, and deployment is beforehand of time table. That contributed to a step-up in postpaid subscriber features, and powerful cellular information earnings boom of just about 20 p.c. Boom in U-verse and strategic industry products and services additionally persevered to be sturdy — including to our momentum.”
2d-Quarter Monetary Outcomes
For the quarter ended June 30, 2013, AT&T’s consolidated revenues totaled $ 32.1 billion, up 1.6 p.c versus the 12 months-past quarter and up 2.6 p.c when except for revenues from the divested Promoting Options trade unit.
When compared with outcomes for the 2nd quarter of 2012, working bills have been $ 26.zero billion versus $ 24.eight billion; working earnings used to be $ 6.1 billion versus $ 6.eight billion; and working profits margin used to be 19.1 p.c, in comparison with 21.6 p.c.
2d-quarter 2013 internet earnings as a result of AT&T totaled $ three.eight billion, or $ zero.seventy one per diluted share, in comparison with $ three.9 billion, or $ zero.sixty six per diluted share, within the yr-past quarter, up 7.6 p.c. Adjusted for a acquire of four cents on gross sales of América Móvil shares, income per diluted share was once $ zero.sixty seven.
2d-quarter 2013 money from running actions totaled $ 9.5 billion, and capital bills totaled $ 5.5 billion. Free money float — money from running actions minus capital bills — totaled $ four.zero billion.
As a part of its Venture VIP-associated LTE deployment, the corporate now covers greater than 225 million POPs with the nation’s quickest, and now most dependable, 4G LTE community, in keeping with impartial 0.33-birthday party knowledge. The corporate’s LTE community is anticipated to duvet just about 270 million POPs in four hundred markets via yr-finish 2013, and its LTE deployment is predicted to be extensively full via the summer time of 2014. Right through the quarter, each PCWorld and PC Journal named AT&T’s 4G LTE community the nation’s quickest.
Right through the 2nd quarter, the corporate achieved its 2nd 300 million share repurchase authorization and started shopping for again shares beneath its 0.33 300 million share authorization. The corporate repurchased 89 million shares for $ three.three billion within the 2d quarter. On the finish of the quarter, 272 million shares remained on the present authorization. The corporate expects to make future repurchases opportunistically.
WIRELESS OPERATIONAL HIGHLIGHTS
AT&T delivered strong income boom, robust postpaid subscriber and ARPU positive aspects, and persisted growth of its excessive-worth smartphone base. Highlights incorporated:
Stable Increase in Wi-fi Revenues. Complete wi-fi revenues, which embody tools gross sales, have been up 5.7 % 12 months over 12 months to $ 17.three billion. Wi-fi carrier revenues elevated four.1 % within the 2d quarter, to $ 15.four billion. Wi-fi knowledge revenues elevated 19.eight p.c from the yr-previous quarter to $ 5.four billion. 2d-quarter wi-fi working bills totaled $ 12.6 billion, up eleven.eight p.c versus the 12 months-prior quarter, and wi-fi working earnings used to be $ four.7 billion, down 7.7 p.c 12 months over 12 months.
Greater than 550,000 Postpaid Subscribers Brought. AT&T posted a web elevate in complete wi-fi subscribers of 632,000 within the 2nd quarter. Subscriber additions for the quarter incorporated postpaid internet provides of 551,000, one of the best 2nd-quarter postpaid web provides in 4 years and a greater than 70 p.c elevate from the yr-in the past quarter. Postpaid web provides embody 398,000 postpaid drugs introduced within the quarter. Linked software internet provides have been 484,000. Pay as you go received eleven,000 subscribers even with declines in session-based totally capsules. Reseller had a web lack of 414,000 basically as a result of losses in low-income debts, however revenues elevated virtually 30 p.c yr over yr.
Telephone-Best Postpaid ARPU Will increase three.zero p.c. Postpaid telephone-simplest ARPU elevated three.zero p.c versus the 12 months-previous quarter. Whole postpaid subscriber ARPU, which incorporates excessive margin however decrease-ARPU drugs, elevated 1.eight p.c versus the yr-past quarter. This marked the 18th consecutive quarter AT&T has posted a yr-over-12 months raise in postpaid ARPU. Postpaid knowledge ARPU elevated 17.6 p.c versus the 12 months-previous quarter.
Smartphone Base Continues to Amplify. AT&T brought 1.2 million postpaid smartphone subscribers within the 2nd quarter. On the finish of the quarter, seventy three %, or forty nine.5 million, of AT&T’s postpaid telephone subscribers had smartphones, up from sixty four %, or forty three.1 million, a yr previous. The corporate offered a 2d-quarter document 6.eight million smartphones, together with a document choice of Android gross sales, and smartphones accounted for 88 p.c of postpaid telephone gross sales within the quarter. AT&T’s ARPU for smartphones is greater than twice that of non-smartphone subscribers, and about ninety p.c of postpaid subscribers are on FamilyTalk®, Cellular Share or industry plans. Churn ranges for these subscribers are considerably decrease than for different postpaid subscribers. Greater than 35 p.c of AT&T’s postpaid smartphone shoppers now use an LTE software. And about sixty five % use a 4G-in a position instrument (LTE/HSPA+).
Extra Than 70 % of Postpaid Smartphones on Utilization-Based totally Plan. The choice of subscribers on utilization-based totally knowledge plans (tiered information and Cell Share plans) continues to extend. Greater than 70 p.c, or 35.1 million, of postpaid smartphone subscribers are on utilization-primarily based information plans. This compares to sixty two %, or 26.6 million, a 12 months in the past and forty five p.c two years in the past. About eighty % of consumers on utilization-primarily based knowledge plans have chosen the upper-priced plans.
Greater than thirteen million connections, or greater than 18 p.c of postpaid subscribers, are on Cellular Share plans. The choice of Cell Share bills reached four.three million within the 2nd quarter with a regular of about three gadgets per account. Take charges on the upper-knowledge plans proceed to be sturdy with greater than 25 p.c of Cellular Share debts selecting 10 gigabytes or larger plans. Greater than 15 % of Cell Share subscribers got here from limitless plans.
Postpaid Churn Presentations Sequential Development. Postpaid churn used to be 1.02 %, up rather from the 12 months-in the past quarter and down fairly from the primary quarter of 2013. Whole churn elevated yr over yr, due principally to will increase in reseller churn, however used to be down somewhat sequentially.
Wi-fi Margins Mirror File Smartphone Gross sales. 2nd-quarter wi-fi margins mirror report 2nd-quarter smartphone gross sales, sturdy improvements and additional income beneficial properties from the corporate’s fine quality smartphone subscriber base. AT&T’s 2nd-quarter wi-fi running earnings margin was once 27.1 % versus 31.zero % within the 12 months-past quarter. AT&T’s wi-fi EBITDA provider margin used to be forty two.four %, when put next with forty five.eight % within the 2nd quarter of 2012. (EBITDA provider margin is working earnings earlier than depreciation and amortization, divided via whole carrier revenues.)
WIRELINE OPERATIONAL HIGHLIGHTS
AT&T’s 2nd-quarter wireline outcomes had been led by means of robust U-verse TV and excessive velocity Web good points, stable wireline shopper income boom and lengthening increase in strategic trade products and services. Highlights integrated:
Wireline Revenues Develop Sequentially. Complete 2d-quarter wireline revenues have been $ 14.eight billion, down zero.9 % versus the yr-previous quarter and up zero.eight p.c sequentially. Complete U-verse revenues grew 30.1 % 12 months over 12 months and have been up 9.zero p.c versus the primary quarter of 2013. 2d-quarter wireline running bills have been $ thirteen.1 billion, up 1.three % versus the 2nd quarter of 2012 and up zero.9 p.c sequentially. AT&T’s wireline running profits totaled $ 1.6 billion, down 15.eight p.c versus the 2d quarter of 2012 and flat sequentially. 2nd-quarter wireline working earnings margin was once eleven.1 p.c, in comparison with thirteen.zero % within the 12 months-previous quarter, however flat versus the primary quarter of 2013.
U-verse Now fifty one % of Shopper Revenues. Revenues from residential clients totaled $ 5.6 billion, a rise of two.four % versus the 2d quarter a yr in the past and up 1.eight p.c versus the primary quarter of 2013. Endured robust boom in client IP knowledge services and products within the 2d quarter greater than offset decrease revenues from voice and legacy merchandise. U-verse, which incorporates TV, excessive pace Web and voice over IP, now represents fifty one p.c of wireline client revenues, up from forty one p.c within the yr-previous quarter. Shopper U-verse revenues grew 28.four % 12 months over yr and had been up eight.2 p.c versus the primary quarter of 2013.
U-verse Hits 9.four million Subscribers. Complete U-verse subscribers (TV and excessive velocity Web) reached 9.four million within the 2d quarter. U-verse TV introduced 233,000 subscribers to high 5.zero million in carrier. U-verse excessive pace Web had a internet acquire of 641,000 subscribers to achieve a complete of 9.1 million. Total, the corporate had a web lack of sixty one,000 wireline broadband subscribers, an development over closing 12 months’s loss however nonetheless reflecting conventional seasonal pressures. Complete wireline broadband ARPU used to be up 9 p.c yr over 12 months. Complete U-verse excessive velocity Web subscribers now symbolize fifty five % of all wireline broadband subscribers when compared with forty p.c within the yr-previous quarter.
About fifty nine p.c of U-verse broadband subscribers have a plan turning in speeds as much as 10 Mbps or greater — up from fifty two % within the 12 months-in the past quarter. Within the 2d quarter, greater than ninety p.c of latest U-verse TV buyers additionally signed up for U-verse excessive pace Web. About 70 % of AT&T U-verse TV subscribers take three or 4 services and products from AT&T. ARPU for U-verse triple-play consumers remains to be greater than $ a hundred and seventy. U-verse TV penetration of purchaser places continues to develop and was once at 20.1 % on the finish of the 2nd quarter.
Trade Revenues Develop Sequentially. Whole revenues from trade consumers had been $ eight.9 billion, down 2.2 p.c versus the 12 months-past quarter and up fairly when compared with the primary quarter of 2013. Trade carrier revenues declined 2.1 % yr over yr. General, declines in legacy merchandise had been partly offset by way of endured double-digit boom in strategic industry products and services. Revenues from these products and services, the following-era capabilities that lead AT&T’s most evolved industry options — together with VPN, Ethernet, webhosting and different evolved IP services and products — grew greater than 15 p.c versus the 12 months-previous quarter. These services and products characterize an $ eight.four billion annualized income movement.