Summary
AT&T Inc. reported solid revenue growth for the first six months of 2011, primarily driven by its wireless segment. Total operating revenues increased by 2.3% to $62.74 billion compared to the same period in 2010. The wireless division, in particular, showed robust performance with a 9.9% increase in segment operating revenues, propelled by strong growth in data services and equipment sales, reflecting the increasing demand for smartphones. This growth in wireless, alongside gains in wireline data services like U-verse, helped offset the persistent decline in traditional voice revenues. While overall operating income saw a slight decrease for the six-month period, net income attributable to AT&T rose by 8.4% to $6.999 billion. This improvement was significantly influenced by a substantial decrease in income tax expense, partly due to a large one-time charge in the prior year related to healthcare legislation. The company also highlighted significant progress on its proposed acquisition of T-Mobile USA, which is expected to enhance its mobile broadband infrastructure and LTE capabilities, though regulatory approvals remain a key factor. AT&T continued its strategic capital expenditures, with a focus on wireless network upgrades and wireline expansion, while also returning value to shareholders through dividend payments.
Financial Highlights
48 data points| Revenue | $31.50B |
| Cost of Revenue | $12.76B |
| Gross Profit | $18.74B |
| SG&A Expenses | $7.97B |
| Operating Expenses | $25.33B |
| Operating Income | $6.17B |
| Interest Expense | $848.00M |
| Net Income | $3.59B |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 5.93B |
| Shares Outstanding (Diluted) | 5.95B |
Key Highlights
- 1Total operating revenues increased by 2.3% to $62.74 billion for the six months ended June 30, 2011, compared to the prior year, primarily driven by wireless growth.
- 2Wireless segment revenues grew by 9.9% for the six months ended June 30, 2011, fueled by increased data service revenues and equipment sales, indicating strong smartphone adoption.
- 3Net income attributable to AT&T increased by 8.4% to $6.999 billion for the six months ended June 30, 2011, supported by lower income tax expenses.
- 4The company is proceeding with the acquisition of T-Mobile USA, expecting it to strengthen its mobile broadband infrastructure and LTE network, pending regulatory approvals.
- 5Capital expenditures remained substantial, totaling $9.4 billion for the six months ended June 30, 2011, focused on wireless network upgrades (including LTE deployment) and wireline expansion (including U-verse).
- 6Dividends paid to stockholders increased to $5.082 billion for the first six months of 2011, reflecting a commitment to shareholder returns.
- 7The debt ratio improved to 36.8% as of June 30, 2011, down from 40.4% in the prior year, indicating a strengthening balance sheet.