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AT&T Earnings Email
Q1 2019 AT&T Earnings

 

Team:

We had a solid second quarter and half-way through the year we’re on track to deliver on our commitments, beginning with using our record free cash flow and our asset sales to pay down our debt. We’re confident we’ll meet our year-end net debt to adjusted EBITDA target of being in the 2.5x range. We’ve started the year with good momentum and I’m confident that we’ll finish it strong. In fact, this morning we’ve raised our free cash flow guidance for 2019 to the $28 billion range, up $2 billion, and we reaffirmed all other guidance for the year.

Our teams delivered solid results across the board. Wireless is about half of our overall EBITDA and it continues to fire on all cylinders. We grew revenues and EBITDA, and had positive phone net adds, both postpaid and prepaid. Our Entertainment Group continues to stabilize and even grow its profitability. Serving a profitable and sustainable video subscriber base is our focus. WarnerMedia delivered another strong quarter with double-digit operating income growth and announced that HBO Max will be the name of our new streaming service launching next spring.

In Mexico, we grew service revenues and subscribers and continue to make progress toward profitability later this year. And Xandr grew revenues and announced that A&E, AMC and Cheddar are joining Community, our curated marketplace of advertising supply-side publishers.

 

AT&T Inc. Key Financial Results

 

Q1

Free cash flow of $8.8 billion

Consolidated revenues of $45.0 billion

Adjusted earnings per share of $0.89

 

Here are highlights from our four businesses:

In our Communications business, Mobility grew wireless service revenues 2.4%, thanks to 355K postpaid and prepaid phone net adds. Entertainment Group delivered a solid $2.9 billion in EBITDA for the quarter, up 1.1% and a reflection of our focus on long-term-value customers. Meanwhile, our FirstNet build is running ahead of schedule and is proving to be a key advantage in our overall wireless network leadership in speed, reliability and performance. We now offer 5G in parts of 20 cities, and we’re on track for nationwide 5G coverage by the first half of 2020. And our AT&T Fiber network now has reached 22 million consumer and business locations.

WarnerMedia reported another strong quarter, with revenue growth of 5.5% and operating income growth of 10.3%. WarnerMedia earned 191 Primetime Emmy nominations. HBO alone earned 137 nominations – once again, the most of any network – and its awarding-winning original content drove strong HBO digital subscriber growth in the quarter. This kind of high-quality, popular original content makes us even more excited about the commercial launch of HBO Max. Warner Bros. reported strong games and home entertainment revenue growth. And our basic cable networks grew subscription revenues, helping to offset declines in advertising revenues.

Our Latin America revenues were pressured by foreign exchange rates, though we achieved nearly 300,000 wireless net adds in Mexico. And Xandr grew revenues by nearly 24%, including AppNexus.

 

We’ve made solid, steady progress and built good momentum heading into the second of year. Thank you for all your hard work – it’s paying off.

Randall Signature
AT&T
 

View more information on AT&T’s 2nd Quarter Results.

 

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