Summary
AT&T Inc. reported steady revenue growth for the six months ended June 30, 2013, with a slight increase of 0.1% to $63.4 billion. While net income saw a marginal increase of 0.5% to $7.6 billion, operating income experienced a decline of 6.7% to $12.1 billion due to increased operating expenses, particularly in cost of services and sales, and a decrease in revenue from traditional voice and text services. The company continues its strategic shift towards data-based services, with wireless data and equipment revenues showing strong growth, partially offsetting declines in legacy services. Significant capital expenditures are being directed towards network upgrades and expansion, particularly for wireless and U-verse services, signaling a commitment to future growth in these areas. Financially, AT&T maintained a solid cash position with $4.5 billion in cash and cash equivalents at the end of the period. The company actively managed its debt, with financing activities including significant debt issuances and repayments. Shareholder returns were a focus, with substantial stock repurchases of $9.2 billion in the first six months of 2013 and consistent dividend payments. The company also announced a major acquisition of Leap Wireless International, Inc., which is expected to enhance its wireless footprint.
Financial Highlights
49 data points| Revenue | $32.08B |
| Cost of Revenue | $13.27B |
| Gross Profit | $18.80B |
| SG&A Expenses | $8.12B |
| Operating Expenses | $25.96B |
| Operating Income | $6.11B |
| Interest Expense | $825.00M |
| Net Income | $3.82B |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.71 |
| Shares Outstanding (Basic) | 5.38B |
| Shares Outstanding (Diluted) | 5.40B |
Key Highlights
- 1Operating revenues increased slightly by 1.6% to $32.1 billion in Q2 2013 and 0.1% to $63.4 billion for the six months ended June 30, 2013, driven by wireless data and U-verse growth.
- 2Operating income decreased by 10.3% in Q2 2013 and 6.7% for the six-month period, impacted by higher operating expenses and a decline in voice revenues.
- 3The company repurchased approximately $9.2 billion of its common stock in the first six months of 2013, indicating a commitment to returning capital to shareholders.
- 4AT&T is actively investing in its future, with capital expenditures of $9.7 billion in the first six months of 2013, primarily focused on wireless and wireline network upgrades and U-verse expansion.
- 5Wireless segment operating income saw a decline of 7.7% in Q2 2013 and 2.1% for the six months, largely due to increased costs associated with smartphone upgrades and subsidies.
- 6Wireline segment operating income experienced a significant decrease of 15.8% in Q2 2013 and 10.7% for the six months, driven by declining voice revenues and higher operational expenses.
- 7AT&T announced a significant agreement to acquire Leap Wireless International, Inc. for approximately $1.26 billion, signaling a strategic move to expand its wireless market presence.