Summary
AT&T Inc. reported solid financial results for the third quarter and the first nine months of 2013, demonstrating revenue growth driven primarily by its Wireless segment. Operating revenues increased by 2.2% in Q3 and 0.8% year-to-date, reflecting strong demand for wireless data and smartphone sales, along with contributions from U-verse services. While operating income saw a slight increase in Q3, it experienced a marginal decline year-to-date, impacted by rising wireless equipment costs and the sale of the Advertising Solutions segment. Net income attributable to AT&T increased by 4.9% in Q3 and 1.9% year-to-date, showing the company's ability to manage costs and maintain profitability amidst industry transitions. The company is strategically investing in its network infrastructure, particularly in wireless and U-verse expansion, as it navigates the shift from traditional voice services to data-centric offerings. Significant capital expenditures are directed towards network upgrades and spectrum acquisition to meet growing data demands. AT&T is also actively managing its capital structure, returning value to shareholders through dividends and share repurchases, while also undertaking strategic acquisitions and divestitures to strengthen its market position.
Financial Highlights
49 data points| Revenue | $32.16B |
| Cost of Revenue | $13.40B |
| Gross Profit | $18.75B |
| SG&A Expenses | $7.95B |
| Operating Expenses | $25.97B |
| Operating Income | $6.19B |
| Interest Expense | $829.00M |
| Net Income | $3.81B |
| EPS (Basic) | $0.72 |
| EPS (Diluted) | $0.72 |
| Shares Outstanding (Basic) | 5.32B |
| Shares Outstanding (Diluted) | 5.33B |
Key Highlights
- 1Operating revenues grew 2.2% year-over-year to $32.16 billion in Q3 2013, driven by wireless data and equipment, and U-verse services.
- 2Net income attributable to AT&T increased by 4.9% to $3.81 billion in Q3 2013, with diluted EPS at $0.72.
- 3Wireless segment operating income increased 3.4% to $4.62 billion in Q3 2013, with data service revenues up 17.6%.
- 4Postpaid smartphone penetration reached 74.7% of the postpaid phone subscriber base, up from 66.1% in the prior year.
- 5Wireline segment operating income declined 13.7% to $1.55 billion in Q3 2013, impacted by declining voice revenues, though data revenues saw a 5.9% increase.
- 6The company repurchased $11.13 billion of stock in the first nine months of 2013 under its authorized programs.
- 7AT&T announced a pending acquisition of Leap Wireless International, Inc. in July 2013, and a significant tower transaction with Crown Castle in October 2013.