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AT&T Earnings Email

 

Q3 2020 AT&T Earnings

 

I want to follow up on today’s video from John Stankey by thanking you for a great team effort in Q3.

You remained focused on what matters most – our customers. Your dedication to executing our plans has resulted in market momentum across the business. Mobility led the way with the strongest postpaid growth in years and lowest-ever churn. And our network and service earned more prestigious awards.

 

 

Mobility. Total revenue in our biggest segment was up compared to Q3 last year, despite COVID impacts. Our growth reflects a true team effort across both Consumer and Business. Postpaid net adds totaled more than 1 million, including 645,000 postpaid phone net adds, the most since 2014. Those volumes spurred a 6.4% increase in equipment revenue. Good news in prepaid, too, with phone net adds at 131,000 and churn near an all-time low.

 

Entertainment. AT&T Fiber – one of our key growth areas – set a quarterly record for net adds with 357,000, putting it on track for 1 million in 2020. Growth in AT&T TV partially offset premium video losses. And our total video losses of 627,000 were down more than 50% compared to Q3 last year.

 

Business. EBITDA came in at $2.5 billion with impressive margins of 39.5%, both up year over year. That speaks to continued efficiency and smart cost management – all while helping our business customers cope with this challenging new environment. Also in Q3, FirstNet surpassed 1.7 million connections.

 

Network. Just in time for the holiday season featuring 16 5G devices, the team won another significant title: Fastest nationwide 5G network.¹ Feels good to beat T-Mobile, doesn’t it? And don’t forget, our network’s been recognized as the fastest in the nation overall for 7 straight quarters², as well as the fastest for iPhones in Q3.³ Our network has never been stronger, and it’s getting better by the day.

 

New offers. Serve Customers First is a call to action to listen to customers and design offers on their terms. We’re putting this into practice with several recent offers: Unlimited Your Way so families can mix and match wireless plans⁴; 3 new options for AT&T Fiber, with no bundle or annual contract required; and our industry-best iPhone 12 offer for both new and existing customers.⁵

 

Recognition. Turns out that when you listen to customers, you need a larger J.D. Power trophy case. Last quarter, we ranked #1 in customer satisfaction for national TV service (DIRECTV) and residential internet service everywhere we offer it. And for purchase experience, Cricket again led the field.⁶ Thanks to all the teams who worked so hard to improve the service we deliver to customers.

 

Think about all we faced in Q3 – a continuing global pandemic, unprecedented hurricane and fire season and industry merger. But despite everything the world threw at us, we still won. That’s because we moved quickly, took bold steps and worked as a team to take care of our customers and deliver great value. When we do that, our customers win – and so do we.

What I need from you in Q4 is more of the same. We’re off to a great start with our new offers and execution of the Apple launch. Let’s close the year strong by keeping our focus on the things that matter.

Again, thanks for everything. Now, let’s go Win as One!

 

Jeff McElfresh Signature
AT&T

 

 

 
¹ Fastest Nationwide 5G network based on AT&T analysis of Ookla Speedtest Intelligence data median 5G download speeds for Q3 2020 comparing only networks offering ‘nationwide’ 5G coverage. 5G Coverage analysis based on carrier’s public statements.

 

² Fastest network based on analysis by Ookla® of Speedtest Intelligence® data of average download speeds for Q1, Q2, Q3, Q4 2019, and median download speeds for Q1, Q2 and Q3 2020. Ookla trademarks used under license and reprinted with permission.

 

³ Fastest based on analysis by Ookla® of Speedtest Intelligence® data median download speeds on Apple Manufactured phones for Q3 2020. Ookla trademarks used under license and reprinted with permission.

 

⁴ AT&T may temporarily slow data speeds if the network is busy. Eligible AT&T Unlimited plans: Starter, Extra, and Elite.

 

⁵ AT&T may temporarily slow data speeds if the network is busy. Ltd. time. Req’s unlimited plan and trade in of eligible device, $799.99 on 0% APR 30-mo. agmt. $0 down for well-qual. Customers only. $0 after credits over 30 mos. No credits for optional $5/mo. Next Up upgrade feature. If svc cancelled, device balance due. For new lines, if svc on other lines cancelled w/in 90 days credits stop. $30 Activation/Upgrade and other terms apply.

 

⁶ For J.D. Power 2020 award information, visit jdpower.com/awards.
 

View more information on AT&T’s 3rd quarter results