Summary
AT&T Inc. reported a net income of $3.915 billion for the second quarter of 2017, a 14.9% increase year-over-year, with diluted EPS of $0.63. For the six months ended June 30, 2017, net income attributable to AT&T was $7.384 billion, a 2.4% increase. Total operating revenues for the quarter slightly decreased by 1.7% to $39.8 billion, reflecting declines in legacy wireline services and equipment sales, partially offset by growth in video and strategic business services. The company's balance sheet showed significant changes, with cash and cash equivalents rising to $25.6 billion from $5.788 billion at the end of 2016, largely due to debt issuances. Long-term debt increased substantially to $132.8 billion from $113.7 billion. The company continues to invest heavily in its networks, with capital expenditures for the six months totaling $10.75 billion. A key strategic development is the pending acquisition of Time Warner Inc., expected to close by year-end 2017, which was partially financed by significant debt issuances during the period.
Financial Highlights
47 data points| Revenue | $38.99B |
| SG&A Expenses | $8.56B |
| Operating Expenses | $33.31B |
| Operating Income | $6.47B |
| Interest Expense | $1.40B |
| Net Income | $5.13B |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 6.17B |
| Shares Outstanding (Diluted) | 6.18B |
Key Highlights
- 1Net income attributable to AT&T increased by 14.9% to $3.915 billion in Q2 2017, with diluted EPS at $0.63.
- 2Total operating revenues saw a slight decline of 1.7% to $39.8 billion in Q2 2017, primarily due to legacy service declines and lower equipment sales.
- 3Cash and cash equivalents significantly increased to $25.6 billion as of June 30, 2017, up from $5.788 billion at year-end 2016, driven by debt issuances.
- 4Long-term debt rose to $132.8 billion, reflecting the company's strategy to finance growth and strategic initiatives, including the pending Time Warner acquisition.
- 5Capital expenditures for the first six months of 2017 totaled $10.75 billion, underscoring continued investment in network infrastructure.
- 6The pending acquisition of Time Warner Inc. is a major strategic focus, with the transaction expected to close by year-end 2017.
- 7The company secured a significant contract with FirstNet to build and manage a nationwide broadband network for first responders, with expected success-based payments over five years.