Summary
AT&T's 2009 10-K filing highlights its strategic evolution from a traditional wireline provider to a diversified telecommunications company with significant investments in wireless and data services. The company, formerly SBC Communications, has undergone substantial consolidation, notably through the acquisitions of AT&T Corp. and BellSouth, to become a leading global telecommunications provider. This period marks a focus on integrating these acquisitions and leveraging advanced technologies like IP-based platforms and expanding its U-verse broadband and video services. Financially, AT&T is navigating a challenging economic environment and increasing competition. While wireless services are a growing revenue driver, contributing significantly to both revenue and income, the wireline segment faces declining voice revenues as customers shift to wireless and internet-based alternatives. The company is actively pursuing strategies to offset these declines through bundled service offerings and expansion of data services, including its U-verse initiative. Regulatory oversight and potential litigation, particularly around U-verse deployment, are identified as key risks.
Financial Highlights
51 data points| Revenue | $122.51B |
| Cost of Revenue | $50.64B |
| Gross Profit | $71.87B |
| SG&A Expenses | $31.36B |
| Operating Expenses | $101.51B |
| Operating Income | $21.00B |
| Interest Expense | $3.37B |
| Net Income | $12.14B |
| EPS (Basic) | $2.06 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 5.90B |
| Shares Outstanding (Diluted) | 5.92B |
Key Highlights
- 1AT&T has significantly expanded its operations through major acquisitions, including AT&T Corp. and BellSouth, consolidating its position as a leading global telecommunications provider.
- 2Wireless services are a key growth area, accounting for approximately 39% of 2008 segment operating revenues and 46% of segment income, with 77 million subscribers at year-end 2008.
- 3The company is actively investing in and expanding its U-verse broadband and video services, reaching over 1 million customers by December 2008, but faces regulatory and deployment challenges.
- 4Wireline voice revenues are declining due to customer migration to wireless and internet-based services, prompting AT&T to focus on bundled voice, data, and video packages.
- 5AT&T is investing in research and development, particularly in IP-based technologies and advanced network design, with R&D expenses totaling $832 million in 2008.
- 6The company faces significant competition across its service segments and is actively managing customer churn in its wireless business.
- 7Significant portions of AT&T's operations are subject to FCC and state-level regulation, particularly its wireline services, which can impact pricing, service offerings, and deployment plans.