Summary
SBC Communications Inc. (now AT&T Inc.) reported its first-quarter 2001 financial results, showing a slight increase in net income to $1.854 billion from $1.822 billion in the prior year's quarter. Earnings per diluted share were $0.54, up from $0.53. Total operating revenues decreased by 10.9% to $11.19 billion, largely due to a significant drop in wireless subscriber revenue compared to the previous year, while landline services showed steady growth. The company experienced increased operating expenses, particularly in its wireline and wireless segments, driven by investments in new products and services like DSL, national expansion initiatives, and merger integration costs. Despite revenue pressures, SBC emphasized its strategic investments in broadband and wireless technology, signaling a focus on future growth areas. The company also provided detailed segment reporting, highlighting performance across its wireline, wireless, directory, international, and other operations.
Key Highlights
- 1Net income increased slightly by 1.8% to $1.854 billion for the first quarter of 2001, compared to $1.822 billion in the first quarter of 2000.
- 2Diluted earnings per share were $0.54, an increase from $0.53 in the prior year's quarter.
- 3Total operating revenues declined by 10.9% to $11.19 billion, impacted by a substantial decrease in wireless subscriber revenue and a decline in directory advertising.
- 4Landline local service revenue showed strong growth of 8.5%, driven by increased demand for DSL and enhanced services.
- 5The company made significant capital expenditures totaling $2.807 billion for construction and network buildout, primarily for its broadband initiative (Project Pronto).
- 6Wireless subscriber numbers continued to grow, with Cingular Wireless reporting 20.5 million customers by the end of the quarter.
- 7SBC redeemed approximately $500 million of mandatorily redeemable preferred securities, resulting in a $10 million extraordinary loss.