Summary
AT&T Inc. reported its third-quarter and nine-month results for the period ending September 30, 2017. Total operating revenues for the quarter were $39.67 billion, a decrease of 3.0% year-over-year, primarily driven by declines in service and equipment revenues. For the nine-month period, total revenues were $118.87 billion, down 2.5%. Net income attributable to AT&T for the quarter was $3.03 billion ($0.49 per diluted share), compared to $3.33 billion ($0.54 per diluted share) in the prior year quarter. For the nine-month period, net income attributable to AT&T was $10.41 billion ($1.69 per diluted share), a slight decrease from $10.54 billion ($1.70 per diluted share) in the same period last year. The company is actively managing its cost structure, with total operating expenses decreasing by 3.5% for both the quarter and the nine-month period. The acquisition of Time Warner Inc. remains a significant strategic focus, with the transaction expected to close by year-end 2017, subject to regulatory approval. AT&T's balance sheet shows substantial debt, with long-term debt increasing significantly to $154.7 billion from $113.7 billion at the end of 2016, largely in anticipation of the Time Warner acquisition. The company also announced its selection to build and manage the FirstNet network for first responders, a significant long-term contract.
Financial Highlights
49 data points| Revenue | $45.74B |
| Cost of Revenue | $9.69B |
| Gross Profit | $36.05B |
| SG&A Expenses | $8.65B |
| Operating Expenses | $33.86B |
| Operating Income | $7.27B |
| Interest Expense | $1.69B |
| Net Income | $4.72B |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 6.16B |
| Shares Outstanding (Diluted) | 6.18B |
Key Highlights
- 1Total operating revenues for Q3 2017 were $39.67 billion, down 3.0% YoY, with service revenue down 2.4% and equipment revenue down 9.1%.
- 2Net income attributable to AT&T for Q3 2017 was $3.03 billion, a decrease from $3.33 billion in Q3 2016, with diluted EPS of $0.49 compared to $0.54.
- 3Total operating expenses decreased by 3.5% for both the quarter and the nine-month period, indicating effective cost management.
- 4Long-term debt increased significantly to $154.7 billion as of September 30, 2017, up from $113.7 billion at December 31, 2016, largely in preparation for the Time Warner acquisition.
- 5The acquisition of Time Warner Inc. is progressing, with an expected closing before year-end 2017, subject to regulatory approvals.
- 6AT&T was selected to build and manage the FirstNet network for first responders, a significant strategic initiative with long-term revenue potential.
- 7Domestic wireless subscribers increased to 138.8 million, and total video subscribers grew to 38.6 million, showing continued subscriber engagement in core services.