Summary
AT&T Inc. reported first-quarter 2024 results, showing net income attributable to common stock of $3.4 billion, or $0.47 per diluted share, a decrease from $4.2 billion, or $0.57 per diluted share, in the prior year quarter. This decline was influenced by several significant items, including restructuring charges related to Open RAN deployment and noncash impairment charges, partially offset by other benefits. Total operating revenues were $30.0 billion, a slight decrease of 0.4% year-over-year, primarily due to lower Mobility equipment revenue and continued declines in Business Wireline, though partially offset by growth in Mobility service revenues and Consumer Wireline. Despite the revenue dip, the company saw improved cash flow from operating activities, reaching $7.5 billion, up $0.9 billion from the first quarter of 2023, driven by operational growth and working capital timing. Capital expenditures were $4.6 billion including vendor financing, a reduction from the prior year's $6.4 billion. The Communications segment, the largest contributor, maintained a stable operating income and improved its operating income margin. Mobility demonstrated subscriber growth and improved margins, while Business Wireline continued to experience revenue declines but managed expense reductions. Consumer Wireline showed revenue growth driven by its broadband offerings.
Key Highlights
- 1First-quarter 2024 net income was $3.4 billion ($0.47 per diluted share), down from $4.2 billion ($0.57 per diluted share) in Q1 2023, impacted by restructuring and impairment charges.
- 2Operating revenues were $30.0 billion, a 0.4% decrease year-over-year, attributed to lower Mobility equipment and Business Wireline revenues, partially offset by service revenue growth.
- 3Cash from operating activities increased to $7.5 billion, up $0.9 billion compared to Q1 2023, indicating improved cash generation.
- 4Capital investment (including vendor financing) was $4.6 billion, a reduction from $6.4 billion in Q1 2023, suggesting a focus on capital efficiency.
- 5Mobility segment revenues grew slightly to $20.6 billion, with service revenue up 3.3% and subscriber count increasing to 114.5 million. Postpaid phone-only ARPU saw a modest increase of 0.9%.
- 6Business Wireline revenues declined 7.8% to $4.9 billion, but operating expenses also decreased, with the segment's operating income margin falling to 1.3% from 7.1%.
- 7Consumer Wireline revenues grew 3.4% to $3.4 billion, driven by broadband expansion, with broadband connections stable year-over-year.