AT&T Inc. Key Financial Results

AT&T Business
Once again, credit to the team for managing transition and generating significant earnings. Business wireline EBITDA came in at $2.5B in 1Q and EBITDA margins were nearly 38% thanks to automation and new platforms for customers.

Business wireless revenue grew year over year for the 6^th straight quarter, reflecting the rapid expansion of FirstNet. We’ve now deployed spectrum for public safety in more than 500 markets.

Also in 1Q, we signed a deal with Vodaphone to accelerate the Internet of Things in the car industry. Working together, we’ll help our customers bring innovation and connectivity to more vehicles across our respective footprints around the globe.

In addition, we picked up key 5G customer wins. We’re working with the Dallas Cowboys to make AT&T Stadium the first 5G stadium in the U.S. We’re also working with Rush System for Health in Chicago and VITAS Healthcare to create the future of healthcare.

Lastly, AT&T Business joined forces with AlienVault to create our new brand, AT&T Cybersecurity. This business is powered with the advanced threat intelligence of Alien Labs and is growing faster than the market.

Technology & Operations
Another quarter, another accolade for our network. This time it’s the fastest,¹ according to Ookla. This comes on top of being recognized as the best² network by GWS last fall.

Right on plan, we continued to set the pace in mobile 5G. Earlier this month, we rolled out mobile 5G in parts of 7 more cities, bringing the total to 19. And we recorded another U.S. first in 1Q, by becoming the first carrier in the U.S. to reach mobile 5G speeds surpassing 1 gigabit per second. In addition, we plan to offer our first 5G smartphone this year.

And while the team delivered for customers, it also kept driving efficiencies in our operations. For the 16^th straight quarter, network costs were down year over year.

Mobility & Entertainment
Mobility is our biggest contributor, and it’s good news for everyone when it posts year-over-year revenue and EBITDA growth. Service revenues were up 2.9%. For the first time since 2014, postpaid voice net adds had a positive 1Q. And prepaid turned in record-low 1Q churn.

Last fall, we told investors the Entertainment Group would stabilize EBITDA. That’s just what it did in 1Q. The team made tough calls to reduce promotions and launch new DTV NOW packages. We also took steps to control rising content costs with agreements to bring them in line with customer demand.

So here’s how it all netted out. Even though we lost DTV and DTV NOW subs in 1Q, EG EBITDA was up 6.9%. We now have a video customer base that’s more profitable to our company. The job ahead is to increase our share of these high-value consumers.

We’re redefining “retail” to win customers. Through AT&T Ready to Go, they tell us when and where to deliver and set up their new devices. No other major U.S. carrier offers this level of convenience, and it just expanded to parts of 54 markets. And a recent campaign with HBO turned select stores into fan hubs with exclusive experiences celebrating the final season of “Game of Thrones.”

Broadband was another positive story. Our AT&T fiber footprint expanded to more than 12 million locations, helping to drive 45,000 broadband net adds.