Summary
AT&T Inc. reported a net loss of $4.0 billion, or $0.77 per diluted share, for the fourth quarter of 2014. This loss was largely driven by significant non-cash charges totaling $10.3 billion, including pension and postemployment benefit accounting adjustments, and the abandonment of certain network assets. Despite the reported net loss, the company saw a 3.8% increase in fourth-quarter revenues to $34.4 billion, driven by growth in its wireless device sales under AT&T Next, U-verse, and strategic business services. Full-year 2014 revenues reached $132.4 billion. The company also highlighted substantial growth in its wireless subscriber base, ending 2014 with approximately 120.6 million customers, a notable increase from the previous year, partly due to the acquisition of Leap Wireless. The company provided guidance for 2015, expecting capital expenditures in the $18 billion range (excluding newly acquired businesses) and anticipating continued growth in consolidated revenue, expanded margins, and low single-digit adjusted earnings per share growth. Recent strategic moves include the acquisition of GSF Telecom Holdings in Mexico and an agreement to acquire Nextel Mexico. These actions underscore AT&T's ongoing efforts to expand its market presence and service offerings, particularly in the wireless sector and international markets.
Key Highlights
- 1Fourth-quarter 2014 net loss of $4.0 billion ($0.77 per diluted share) primarily due to $10.3 billion in non-cash charges related to pension adjustments and network asset impairments.
- 2Total revenues for Q4 2014 increased by 3.8% to $34.4 billion, and full-year 2014 revenues reached $132.4 billion.
- 3Wireless segment revenues grew 7.7% year-over-year in Q4 2014, driven by strong sales of devices through the AT&T Next installment plan.
- 4Total wireless subscribers grew to approximately 120.6 million by the end of Q4 2014, an increase of 10.2 million from the prior year, boosted by the Leap Wireless acquisition.
- 5Significant shift towards AT&T Next installment plans and Mobile Share Plans, with 58% of postpaid smartphone gross adds/upgrades on Next and over 52 million connections on Mobile Share Plans.
- 6Completed acquisition of Mexican wireless company GSF Telecom Holdings and entered an agreement to acquire Nextel Mexico.
- 7Full-year 2015 capital expenditure guidance is set at approximately $18 billion, excluding newly acquired businesses, with expectations for continued revenue growth and adjusted EPS growth in the low single digits.