10-QPeriod: Q1 FY2023

AT&T INC. Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 1, 2023For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. reported first-quarter 2023 results with total operating revenues of $30.1 billion, a 1.4% increase year-over-year. This growth was primarily driven by the Communications segment, which saw a 1.0% increase in revenue, particularly in its Mobility and Consumer Wireline businesses. The company's operating income showed a healthy increase of 8.4% to $6.0 billion, indicating improved operational efficiency and cost management. Despite a slight decrease in net income attributable to common stock to $4.2 billion from $4.8 billion in the prior year, driven by factors like higher interest expenses and a decrease in "Other income (expense) - net," the underlying operational performance remains robust. The company continues to invest in its network infrastructure, with capital expenditures totaling $4.3 billion. AT&T's financial position remains stable, with total assets of $400.9 billion and a focus on managing its debt levels. Investors should note the company's strategic focus on its core Communications segment and its efforts to generate free cash flow.

Financial Highlights

46 data points
Beta

Revenue

$30.14B

Net Income

$4.23B

14.0% Net Margin

EPS (Diluted)

$0.57

Total Assets

$400.87B

Cash & Equivalents

$2.82B

Free Cash Flow

$6.68B

Financial Statements
Beta
Revenue$30.14B
SG&A Expenses$7.17B
Operating Expenses$24.14B
Operating Income$6.00B
Interest Expense$1.71B
Net Income$4.23B
EPS (Basic)$0.58
EPS (Diluted)$0.57
Shares Outstanding (Basic)7.17B
Shares Outstanding (Diluted)7.47B

Key Highlights

  • 1Total operating revenues increased by 1.4% to $30.1 billion, driven by the Communications segment.
  • 2Operating income grew by 8.4% to $6.0 billion, demonstrating improved profitability.
  • 3Mobility service revenue saw a 5.2% increase, and Mobility operating income rose by 10.2%, highlighting strength in the wireless sector.
  • 4Fiber broadband connections increased by 19.2%, indicating progress in the company's fiber expansion strategy.
  • 5Capital expenditures remained significant at $4.3 billion, reflecting ongoing investment in network infrastructure.
  • 6Total debt stood at $137.5 billion, with management focused on managing debt levels.
  • 7Net income attributable to common stock decreased to $4.2 billion from $4.8 billion in the prior year, influenced by higher interest expenses and other income fluctuations.

Frequently Asked Questions

AT&T's revenue growth in the first quarter of 2023 was primarily driven by its Communications segment, with notable increases in Mobility and Consumer Wireline revenues. The Latin America segment also contributed positively with significant growth.

AT&T's operating income increased by 8.4% to $6.0 billion, indicating improved profitability. This was achieved through effective cost management and operational efficiencies, despite some increases in expenses like depreciation and amortization.

AT&T continues to invest heavily in its fiber broadband expansion. The company reported a 19.2% increase in Fiber Broadband Connections, signaling strong progress and continued commitment to this growth area.

As of March 31, 2023, AT&T had total debt of $137.5 billion. While debt levels remain substantial, the company's management is actively working to manage these obligations and maintain compliance with its debt covenants.