Strong Revenue and Earnings Growth Highlight AT&T
Oct 24, 2010 phones
* $2.08 diluted EPS compared to $0.54 diluted EPS in the third base quarter of 2009? EPS of $0.55, excluding $1.53 in one-meter gains from a previously disclosed taxation settlement and the sale of Sterling Commerce
* Consolidated revenues from continuing trading operations of $31.6 one thousand million in the third base poop, up $847 million, or 2.8 percent, versus the year-earlier period
* 11.4 percentage growth in radio revenues, with a 10.5 percentage increase in radio service revenues
* Record wireless volumes, with more than 8 million postpaid integrated gimmick gross sales
* 2.6 million step-up in total radio subscribers — the highest third base-poop net amplification in the company’s story — to reaching 92.8 meg subscribers in service
* Postpaid subscriber ARPU (average monthly revenues per subscriber) up 2.0 percentage to $62.84, the one-seventh consecutive quarter with a class-over-class increase
* 1.32 percent aggregate wireless churn, best-ever third-poop
* 30.5 percent emergence in wireless information revenues, up $1.1 one thousand million versus the year-earlier poop
* First year-over-class growth in wireline consumer revenues in more than two years
* 30.0 percentage emergence in consumer IP data revenues, driven by AT&T U-verse® expansion
* 236,000 meshing amplification in AT&T U-rhyme TV subscribers to reaching 2.7 meg in overhaul, with continued high broadband and voice attach rates
* 148,000 net amplification in wireline broadband connections
* 15.4 percentage growth in revenues from strategic stage business services such as Ethernet, Virtual Private Networks (VPNs), hosting and application services
OIBDA and Free Cash Flow Discussions
AT&T Inc. reported third base-poop results highlighted by emergence in consolidated revenues, strong sales of integrated devices, gains in IP-based and strategic business services, and disciplined carrying into action on cost initiatives.
“This was a terrific mobile broadband poop,” said Randall Stephenson, AT&T chairman and chief administrator military officer. “A track record number of customers signed new deuce-year contracts and integrated gimmick sales outpaced our previous best by a wide edge. Wireless revenues continue to grow, churn is arrival record low levels, and postpaid ARPU increased for the one-seventh straight quarter.
“These trends add to our impulse and confidence,” George Stephenson said. “Mobile broadband is the industry’s most powerful growth driver, and requirement is in its early stages in both the consumer and stage business segments. AT&T is well positioned for the opportunities ahead.”
Third-Quarter Financial Results
(On August 27, 2010, AT&T completed its sale of Sterling Department of Commerce to IBM for approximately $1.4 one thousand million in cash. Third-quarter comparisons ar based on results from continuing operations, which exclude results from Sterling Department of Commerce in all periods.)
For the poop ended Sep 30, 2010, AT&T’s consolidated revenues totaled $31.6 one thousand million, up $847 meg, or 2.8 percent, versus the class-earlier quarter, grading the company’s third consecutive quarter with a class-over-year gross step-up. Versus the second poop of this class, consolidated revenues were up $773 million, or 2.5 percent.
Compared with results for the third quarter of 2009, operating expenses were $26.1 one thousand million versus $25.4 one thousand million; operating income was $5.5 one thousand million, up from $5.4 billion; and AT&T’s operating income edge was stalls at 17.3 percentage, compared to 17.5 percentage.
Third-poop 2010 meshing income attributable to AT&T totaled $12.3 one thousand million, or $2.08 per diluted share, including $1.53 in ace-time gains from a previously disclosed tax liquidation and the sale of Sterling Department of Commerce. These results compare with reported meshing income attributable to AT&T of $3.2 billion, or $0.54 per diluted share, in the third base quarter of 2009. Excluding one-meter gains, earnings grew 3.8 percent to $0.55 per diluted contribution, compared to $0.53 per diluted contribution in the year-earlier poop.
Third-quarter 2010 cash from operating activities totaled $9.5 billion; chapiter expenditures totaled $5.5 billion, including a nearly 64 percent increase in wireless-related capital investiture versus the year-earlier quarter, as AT&T aggressively deploys next-generation wireless broadband networks. Free cash stream — cash from operating activities subtraction capital expenditures — totaled $4.0 one thousand million.
Compared with results for the first base three living quarters of 2009, year to appointment through the third base poop, cash from operating activities totaled $25.4 one thousand million versus $25.4 billion; capital expenditures totaled $13.7 billion versus $11.6 one thousand million; and free immediate payment flow totaled $11.6 billion versus $13.9 billion.
Wireless Operational Highlights
Led by a track record poop of integrated gimmick gross sales, AT&T delivered solid third-quarter growth in its radio business, including double-dactyl radio gross gains. Highlights included:
Best-Ever Third-Quarter Subscriber Gain. AT&T posted a meshing amplification in aggregate radio subscribers of 2.6 million, to reach 92.8 meg in overhaul. Third-poop meshing add emergence reflects rapid adoption of smartphones, increases in prepaid subscribers and growth in a host of connected devices such as eReaders, security systems, fleet management and global locating systems in both the stage business and consumer markets. Retail net adds for the quarter include postpaid meshing adds of 745,000 and prepaid meshing adds of 321,000. Connected device net adds were 1.2 meg, and reseller net adds were 406,000.
Total Churn at Record Third-Quarter Level. Postpaid churn was 1.14 percent — matching the third base-quarter record set in 2009 — and total churn reached a best-ever third-quarter level of 1.32 percentage versus 1.42 percent in the third base quarter of 2009.
Record Integrated Device Sales. More than 8 meg postpaid integrated devices were activated in the third base quarter, the most quarterly activations ever. Thomas More than 80 percent of postpaid sales were integrated devices. (Integrated devices ar handsets with QWERTY or virtual keyboards in addition to part functionality and are a keystone driver of wireless information usage.)
At the oddment of the quarter, 57.3 percent of AT&T’s 67.7 meg postpaid subscribers had integrated devices, up from 42.0 percentage a year earlier. The norm ARPU for integrated devices on AT&T’s meshing is 1.7 times that of the troupe’s non-integrated device base. Thomas More than 80 percent of integrated device subscribers are on FamilyTalk and/or business price reduction plans. Churn levels for these plans continue to run below the troupe’s postpaid pedestal.
AT&T’s third-quarter integrated device growth included 5.2 meg iPhone activations, the most iPhone activations ever in a poop. This is 62 percentage more than the previous quarterly record of 3.2 meg activated in the second base quarter of 2010. Approximately 24 percentage of those activations were for customers who were new to AT&T.
Data Revenue Growth of 30.5 Percent. Wireless information revenues — from electronic messaging, Net approach, approach to applications and related services — increased $1.1 one thousand million, or 30.5 percent, from the class-earlier quarter to $4.8 one thousand million. AT&T radio subscribers on data plans increased by 21.5 percent over the past tense year. Versus the year-earlier poop, aggregate textual matter messages carried on the AT&T meshing increased about 34 percentage to 161 billion and multimedia system messages more than doubled to 2.8 one thousand million.
Solid Postpaid ARPU Growth. Driven by strong information growth, postpaid contributor ARPU increased 2.0 percent versus the year-earlier poop to $62.84. This marked the seventh consecutive quarter AT&T has posted a year-over-class increase in postpaid ARPU. Postpaid data ARPU reached $22.02, up 19.5 percent versus the class-earlier poop, and aggregate postpaid contributor revenues continued recent trends, with double-digit growth, reflecting increases in both voice and data.
Double-Digit Wireless Revenue Growth. Wireless service revenues increased 10.5 percentage to $13.7 one thousand million in the third base poop. Total radio revenues, which include equipment gross sales, were up 11.4 percent class over class to $15.2 one thousand million and increased 6.6 percentage from the second poop of 2010.
Wireless Margins. Wireless margins were impacted by increased operating costs associated with the company’s record poop for integrated gimmick activations. Absent the costs associated with these additional activations, service margins would rich person been similar to the prior quarter of this class. Operational execution and further growth in the company’s high-quality integrated device subscribers helped partially set-back these costs. AT&T’s wireless operating income edge was 23.1 percent versus 25.6 percent in the year-earlier quarter, and AT&T’s wireless OIBDA service edge was 37.6 percent, compared to 40.3 percentage in the third base quarter of 2009 (OIBDA overhaul margin is operating income before disparagement and amortization, divided by total service revenues). Third-poop radio operating expenses totaled $11.7 billion, up 15.2 percent versus the class-earlier quarter, and wireless operating income was $3.5 billion, up 0.2 percent class over year.
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