Summary
AT&T Inc. reported its first-quarter 2019 financial results, showing a notable increase in total operating revenues, primarily driven by the acquisition of Time Warner (now WarnerMedia) in June 2018. While consolidated revenues saw a significant rise, profitability metrics such as Net Income Attributable to AT&T experienced a decline compared to the prior year quarter. The company is actively managing its debt, with significant issuances and repayments during the period. The Communications segment remains the largest contributor to revenue, though it saw a slight year-over-year decrease, with growth in Mobility offsetting declines in Entertainment Group and Business Wireline. The integration of WarnerMedia is progressing, with its substantial revenue contribution bolstering the overall top line, though the company continues to navigate the complexities of combining these diverse operations.
Financial Highlights
48 data points| Revenue | $44.83B |
| SG&A Expenses | $9.65B |
| Operating Expenses | $37.59B |
| Operating Income | $7.23B |
| Interest Expense | $2.14B |
| Net Income | $4.10B |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 7.31B |
| Shares Outstanding (Diluted) | 7.34B |
Key Highlights
- 1Total operating revenues increased by 17.8% to $44.8 billion, largely due to the inclusion of WarnerMedia's results.
- 2Net Income Attributable to AT&T decreased by 12.1% to $4.1 billion, while Diluted Earnings Per Share attributable to AT&T fell to $0.56 from $0.75 in the prior year.
- 3The Communications segment's operating revenues slightly decreased by 0.4% to $35.4 billion, with Mobility showing modest growth.
- 4WarnerMedia segment revenues surged to $8.4 billion, compared to $112 million in the prior year quarter, reflecting the full impact of the acquisition.
- 5Capital expenditures remained substantial at $5.2 billion, primarily for network upgrades and expansion.
- 6The company's debt management included issuing $9.2 billion in long-term debt and repaying $9.8 billion.
- 7Adoption of new lease accounting standards (ASC 842) resulted in the recognition of operating lease liabilities and right-of-use assets on the balance sheet.