Summary
AT&T Inc. reported its first quarter 2019 financial results, showing a significant increase in total operating revenues to $44.8 billion, up from $38.0 billion in the prior year's quarter. This growth was primarily driven by the inclusion of WarnerMedia's results following its acquisition in June 2018. However, net income attributable to AT&T decreased by 12.1% to $4.1 billion, or $0.56 per diluted share, compared to $4.66 billion, or $0.75 per diluted share, in the first quarter of 2018. The company's Communications segment remains its largest, with steady performance, while the newly integrated WarnerMedia segment contributed substantially to revenue. Despite the top-line growth, increased operating expenses, particularly depreciation and amortization related to the WarnerMedia acquisition, along with higher interest expenses, impacted profitability. AT&T continues to invest in its network infrastructure, including the ongoing rollout of 5G technology.
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 acquisition of Time Warner (now WarnerMedia).
- 2Net income attributable to AT&T decreased by 12.1% to $4.1 billion, resulting in diluted EPS of $0.56, down from $0.75 in the prior year.
- 3The Communications segment, AT&T's largest, showed a slight increase in operating contribution, driven by its Mobility unit.
- 4The WarnerMedia segment contributed significantly to revenues ($8.4 billion) and operating contribution ($2.3 billion) in its first full quarter of results integration.
- 5Operating expenses rose by 18.1%, primarily due to increased depreciation and amortization related to the WarnerMedia acquisition and ongoing capital expenditures.
- 6Interest expense increased by 20.9% due to higher debt balances associated with the Time Warner acquisition.
- 7AT&T continues to invest in its future, with capital expenditures of $5.2 billion for property and equipment and progress in its 5G network deployment.