Summary
AT&T Inc. reported its first quarter 2022 financial results, showing a notable decrease in total operating revenues to $38.1 billion, down from $43.9 billion in the prior year's quarter. This decline was primarily attributed to the separation of the U.S. video business in July 2021 and the sale of Vrio in November 2021, alongside lower revenues in Business Wireline. The company's Communications segment, however, demonstrated resilience with a 2.5% increase in operating revenues, driven by growth in Mobility and Consumer Wireline, while WarnerMedia also saw a slight revenue increase. Net income attributable to AT&T common stock significantly decreased to $4.8 billion from $7.5 billion in the prior year, reflecting these business realignments and other factors. Operationally, AT&T continues to invest in its core infrastructure, particularly its 5G network, and broadband expansion. The company's cash position strengthened significantly, with cash and cash equivalents reaching $38.6 billion as of March 31, 2022, up from $21.2 billion at the end of 2021. This increase was bolstered by significant debt issuances in anticipation of the WarnerMedia/Discovery transaction, which closed shortly after the quarter. Despite the revenue and net income declines, the strategic repositioning away from legacy businesses towards core connectivity and growth areas appears to be the primary focus.
Financial Highlights
46 data points| Revenue | $29.71B |
| SG&A Expenses | $6.98B |
| Operating Expenses | $24.18B |
| Operating Income | $5.54B |
| Interest Expense | $1.63B |
| Net Income | $4.81B |
| EPS (Basic) | $0.66 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 7.18B |
| Shares Outstanding (Diluted) | 7.56B |
Key Highlights
- 1Total operating revenues decreased by 13.3% to $38.1 billion in Q1 2022 compared to $43.9 billion in Q1 2021, largely due to divestitures.
- 2Net Income Attributable to AT&T decreased by 36.3% to $4.8 billion in Q1 2022 from $7.5 billion in Q1 2021.
- 3The Communications segment saw a 2.5% increase in operating revenues to $28.9 billion, driven by growth in Mobility and Consumer Wireline.
- 4WarnerMedia's operating revenues grew by 2.5% to $8.7 billion, supported by subscription and content revenues.
- 5Latin America segment revenues declined significantly by 49.8% due to the divestiture of Vrio.
- 6Cash and cash equivalents increased substantially to $38.6 billion as of March 31, 2022, from $21.2 billion at December 31, 2021, partly due to financing activities related to the WarnerMedia separation.
- 7The company continues to invest in its 5G network and broadband expansion, with capital expenditures of $4.7 billion in Q1 2022.