AT&T has disclosed its financial performance – revenue, profit, ARPU, subscriber growth, fiber broadband, Opex and Capex during the first quarter of 2024.
AT&T’s revenues fell 0.4 percent to $30 billion in the first quarter versus $30.1 billion — due to declines in mobility equipment revenues, driven mainly by lower sales volumes, and lower business wireline revenues.
John Stankey, AT&T CEO, said in its earnings report: “Customers are choosing AT&T and staying with us. We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in mobility and consumer wireline.”
2024 Outlook
Wireless service revenue growth in the 3% range
Broadband revenue growth of 7%+
Adjusted EBITDA growth in the 3% range
Capital investment in the $21-$22 billion range
REVENUE BREAK-UP
AT&T’s communications segment revenues fell 1.0 percent to $28.9 billion.
AT&T’s mobility revenues rose 0.1 percent to $20.594 billion, driven by service revenue growth of 3.3 percent from subscriber and postpaid ARPU growth, offset by lower equipment revenues due to lower sales volumes.
AT&T’s business wireline revenues dropped 7.8 percent to $4.913 billion, due to lower demand for legacy voice and data services as well as product simplification, partially offset by growth in connectivity services, and non-recurring equipment revenues.
AT&T’s consumer wireline revenues grew 3.4 percent to $3.350 billion, driven by growth in broadband revenues attributable to fiber revenues, which grew 19.5 percent, partially offset by declines in legacy voice and data services and other services.
AT&T’s Latin America revenues rose 20.4 percent to $1,063 million, primarily due to favorable impacts of foreign exchange rates, higher equipment sales and subscriber growth.
AT&T said its operating expenses were $24.2 billion, essentially stable with $24.1 billion in the year-ago quarter. Operating expenses increased due to higher depreciation related to fiber and 5G investment, accelerated depreciation on wireless network equipment due to Open RAN transformation and associated restructuring charges.
AT&T reported operating income of $5.8 billion versus $6.0 billion in the year-ago quarter. AT&T posted net income of $3.8 billion versus $4.5 billion in the year-ago quarter.
AT&T disclosed that its capital expenditures were $3.8 billion in the quarter versus $4.3 billion in the year-ago quarter. Capital investment, which includes $0.8 billion of cash payments for vendor financing, totaled $4.6 billion versus $6.4 billion in the year-ago quarter.
