AT&T Inc. reported second-quarter results highlighted by growing revenues and earnings, record wireless service margins and churn, strong wireless data growth and continued gains in U-verse services.


Mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better. With this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network. All of these things add to our confidence and enthusiasm looking ahead.


With disciplined cost management our cash generation continues to be strong. This allows us to invest aggressively in our growth platforms while returning substantial value to share owners through dividends and share repurchases.


Highlights


• $0.66 diluted EPS compared to $0.60 diluted EPS in the second quarter of 2011, up 10 percent year over year and sequentially


• Consolidated revenues of $31.6 billion, up 0.3 percent versus the year-earlier period; up 2.0 percent when adjusted for Advertising Solutions sale


• Highest-ever wireless margins, operating income margin of 30.3 percent, with EBITDA service margin of 45.0 percent


• $2.5 billion in stock buybacks; 75.8 million shares repurchased


• AT&T’s growth engines — wireless, wireline data and managed services — represented 80 percent of total revenues when excluding Advertising Solutions, and grew 5.5 percent versus the same quarter a year ago, led by:


- 18.8 percent growth in wireless data revenues, up $1 billion versus the year-earlier quarter


- 13.5 percent growth in strategic business services revenues


- 38.3 percent growth in U-verse revenues


• Best-ever postpaid, prepaid and total wireless churn; postpaid churn drops to 0.97 percent


• 1.3 million total wireless net adds, with gains in every customer category; 320,000 postpaid net adds


• Strong smartphone sales of 5.1 million with more than one-third of all postpaid smartphone subscribers now on 4G-capable devices


• Branded computing (tablets, tethering plans, etc.) net adds of 496,000 to reach a total of 6.3 million, up more than 50 percent versus a year ago


• Postpaid wireless subscriber ARPU (average monthly revenues per subscriber) up 1.7 percent to $64.93


• First enterprise revenue growth in more than four years


• Wireline consumer revenues up 1.7 percent versus the year- earlier period; their strongest growth in more than four years


• 6.8 million total AT&T U-verse® subscribers (TV and high speed Internet) in service; U-verse TV subscribers grew 22 percent year over year


View the investor webcast


“We executed well across the business and posted another strong quarter with growing revenues, expanding margins and double-digit earnings growth.”


Randall Stephenson, AT&T chairman and chief executive officer.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20