10-QPeriod: Q2 FY2024

AT&T INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 25, 2024For Securities:TT-PCTBBT-PA

Summary

AT&T Inc. (T) reported its financial results for the quarter and six months ended June 30, 2024. Total operating revenues saw a slight decline of 0.4% for both periods, reaching $29.8 billion for the quarter and $59.8 billion for the first six months. This was primarily driven by decreases in equipment sales and Business Wireline service revenue, partially offset by growth in Mobility service and Consumer Wireline. Operating income declined year-over-year, down 10.1% to $5.76 billion for the quarter and 6.5% to $11.61 billion for the six months, impacted by increased depreciation and amortization related to network modernization and restructuring charges. Despite revenue headwinds, the Mobility segment showed resilience with service revenue growth and improved operating income. Consumer Wireline also demonstrated positive momentum with increased operating income. However, the Business Wireline segment experienced a significant drop in operating income. The company's cash flow from operations remained stable year-over-year, providing the liquidity needed to fund capital expenditures, debt repayments, and shareholder dividends. Management highlighted ongoing investments in network infrastructure, particularly fiber and 5G, as key strategic priorities.

Financial Highlights

47 data points
Beta

Revenue

$29.80B

Net Income

$3.60B

12.1% Net Margin

EPS (Diluted)

$0.49

Total Assets

$398.03B

Cash & Equivalents

$3.09B

Free Cash Flow

$9.09B

Financial Statements
Beta
Revenue$29.80B
SG&A Expenses$7.04B
Operating Expenses$24.04B
Operating Income$5.76B
Interest Expense$1.70B
Net Income$3.60B
EPS (Basic)$0.49
EPS (Diluted)$0.49
Shares Outstanding (Basic)7.20B
Shares Outstanding (Diluted)7.20B

Key Highlights

  • 1Total operating revenues slightly decreased by 0.4% to $29.8 billion for the quarter and $59.8 billion for the six months ended June 30, 2024.
  • 2Operating income declined by 10.1% to $5.76 billion for the quarter and 6.5% to $11.61 billion for the six months, attributed to increased depreciation/amortization and restructuring charges.
  • 3The Mobility segment reported a 0.8% increase in quarterly revenue and a 2.4% increase in six-month operating income, supported by subscriber growth and ARPU increases.
  • 4Consumer Wireline showed a 3.0% increase in quarterly revenue and a significant 51.5% increase in six-month operating income, driven by fiber customer growth.
  • 5Business Wireline segment operating income saw a substantial decrease of 74.2% for the quarter and 78.6% for the six months, impacted by declining legacy services and product simplification.
  • 6Cash provided by operating activities remained strong at $16.64 billion for the first six months, largely unchanged from the prior year.
  • 7Capital expenditures for the first six months were $8.12 billion, reflecting ongoing investment in network infrastructure such as fiber and 5G.

Frequently Asked Questions

AT&T's total operating revenues saw a slight decrease of 0.4% in both the second quarter and the first six months of 2024 compared to the same periods in 2023. Quarterly revenue was $29.8 billion, and six-month revenue was $59.8 billion. This was primarily due to declines in equipment sales and Business Wireline service revenue, partially offset by increases in Mobility service and Consumer Wireline revenues.

Operating income declined year-over-year. For the second quarter, it decreased by 10.1% to $5.76 billion, and for the first six months, it decreased by 6.5% to $11.61 billion. Key factors impacting operating income include increased depreciation and amortization expenses, largely due to network modernization and the deployment of Open RAN, as well as restructuring charges. While Mobility and Consumer Wireline segments showed improved operating income, the Business Wireline segment experienced a significant decline.

The Mobility segment continues to be a strong performer. For the second quarter, operating revenues increased by 0.8% to $20.48 billion, and operating income increased by 1.6% to $6.72 billion. For the first six months, operating income increased by 2.4% to $13.19 billion. Growth is driven by an increase in wireless service revenue, attributed to subscriber gains and growth in average revenue per user (ARPU), alongside improved postpaid churn rates.

AT&T demonstrated a solid cash flow from operations, generating $16.64 billion in the first six months of 2024, which is stable year-over-year. The company used this cash to fund capital expenditures ($8.12 billion in the first six months), repay debt, and pay dividends. The company has $3.09 billion in cash and cash equivalents available as of June 30, 2024. The debt ratio was 51.8% as of June 30, 2024, indicating a manageable debt level. They maintain availability under credit facilities and their commercial paper program for liquidity.