By Telecom Lead Team:
American mobile service provider AT&T has reported 2 percent increase in
sales at $124.28 billion in 2011 against $126.72 billion in 2010.
The dismal growth was
primarily because of an 11.3 percent drop in voice revenue in 2011.
AT&T posted a 3.6
increase in Q4 2011 revenue at $32.5 billion against $31.36 billion.
The telecom major reported
80 percent dip in profit at $3.9 billion in 2011 from $19.86 billion in 2010.
In Q4 2011, it posted net
loss of $6.67 billion against a profit of $1.08 billion.
In 2011, AT&T’s growth
engines – wireless, wireline data and managed services – represented 76 percent
of total revenues and grew 7.5 percent versus 2010.
Wireless revenue was up 6
percent in 2011 at $56.72 billion. Voice revenue dipped 11.3 percent to $25.13
billion. Data income was up 7.4 percent in 2011 to $29.6 billion.
AT&T’s Capex was up by 3
percent to $20.11 billion in 2011 from $19.53 billion in 2010.
In Q4 2011, Capex was down
by 13.8 percent to $5.48 billion.
We had a tremendous
year in terms of execution, and we have excellent momentum across our growth
platforms. This was a blowout quarter for smartphone sales. Our network
performance is at a high level on voice quality and best-in-class mobile
download speeds. U-verse sales continue to be strong and business revenue
trends are on a good track,” said Randall Stephenson, AT&T chairman and
chief executive officer.
AT&T
says the company is well positioned to deliver solid revenue and earnings
growth with improving margins while returning substantial value to shareowners.
In 2012, AT&T expects continued consolidated revenue growth, including
postpaid wireless ARPU growth around 2 percent for the year.
The company
also expects to expand consolidated and wireless margins while keeping wireline
margins stable. Achieving these targets will lead to mid-single-digit or better
earnings growth with an opportunity to accelerate earnings growth beyond 2012.
Outlook excludes any significant items. Importantly, little economic lift is assumed
with these expectations.
AT&T
expects capital expenditures to be about $20 billion, stable with 2011, as
increases in wireless spending offset declines in wireline capital
expenditures. The company also expects strong free cash flow, with full-year
free cash flow in the $15 to $16 billion range, and plans to begin execution of
its existing 300 million share repurchase authorization immediately.
