AT&T Reports Strong Revenue and Adjusted Earnings Growth with Solid Margin Expansion in First-Quarter Results
April 27, 2016
Fourth Straight Quarter of Double-Digit Adjusted EPS Growth; Best-Ever U.S. Wireless EBITDA Service Margins; Full-Year Guidance on Track
Consolidated revenues of $40.5 billion, up 24% versus the year-earlier period primarily due to DIRECTV acquisition
Diluted EPS of $0.61 as reported; $0.72 diluted adjusted EPS, a 10.8% increase
Cash from operations of $7.9 billion; free cash flow of $3.2 billion, up 17% year over year
Adjusted margins expand in every domestic segment
2.3 million North American wireless net adds driven by connected devices, Mexico and Cricket; 712,000 branded (postpaid and prepaid) phone net adds
Total churn of 1.42% in U.S., stable year over year; postpaid churn of 1.10%
Business Solutions revenues up 0.3% year over year; wireless revenues up 2.3%
Strategic business services revenues of $2.8 billion, up nearly $250 million
328,000 U.S. DIRECTV net adds; total video subscribers decline slightly
Entertainment Group broadband grew with 186,000 IP broadband net adds
Note: AT&T's first-quarter earnings conference call will be webcast at 4:30 p.m. ET on Tuesday, April 26, 2016. The webcast and related materials will be available on AT&T’s Investor Relations website at www.att.com/investor.relations.
DALLAS, April 26, 2016 — AT&T Inc. (NYSE:T) today reported strong revenue, adjusted operating margin, adjusted EPS and free cash flow growth for the first quarter.
“It was a good start to the year. We had solid financial results and executed well on our strategy to be the premier integrated communications provider for businesses and consumers,” said Randall Stephenson, AT&T chairman and CEO. “We’re seeing good momentum with our initial integrated wireless, video and broadband offers. And we’ll expand the integrated choices for customers in the fourth quarter when we launch our new video streaming services."
“Our consolidated revenues, adjusted earnings and free cash flow continue to grow as margins continue to expand. And we’re putting up these numbers even as we invest in building our Mexico wireless business. In addition, DIRECTV merger synergies are on track to reach $1.5 billion or better by the end of the year.”