Below are my key takeaways from the AT&T Q2 2016 Earnings Call on July 21:
Summary:
DirecTV integration is going well, adding nearly 1MM subs since the acquisition, +342K in the quarter. Over 80% of TV subs on satellite platform. Added 2.1MM wireless subs via connected devices, Mexico and Cricket. Second lowest ever US wireless postpaid churn at 0.97%. Best ever US wireless EBITDA margins of 41.4%.
Ad sales growing by double digits YTD. IP Broadband revenues up 15%, total broadband revenues up 7%.
In Mexico, added 780K wireless subs with revenue up 13% sequentially. In DirecTV Latin America, revenue up 8% sequentially to$1.2B, while adding 87K TV sub.
Acquired Quickplay Media, a video streaming platform that powers OTT and TV Everywhere services.
Financial Metrics:
- Total Revenue: $40,520MM
- Q2 2015: $33,015MM
- Total EBITDA: $13,136MM
- Q2 2015: $10,469MM
- Total Operating Income: $6,560MM
- Q2 2015: $5,773MM
- EPS: $0.55
- Q2 2015: $0.59
- Business Solutions
- Revenue: $17,579MM
- Q2 2015: $17,664MM
- EBITDA: $6,722MM
- Q2 2015: $6,692MM
- Operating Income: $4,201MM
- Q2 2015: $4,232MM
- Revenue: $17,579MM
- Entertainment Group
- Revenue: $12,711MM
- Q2 2015: $5,782MM
- EBITDA: $3,142MM
- Q2 2015:$869MM
- Operating Income: $1,653MM
- Q2 2015: -$196MM
- Revenue: $12,711MM
- Consumer Mobility
- Revenue: $8,186MM
- Q2 2015: $8,755MM
- EBITDA: $3,506MM
- Q2 2015: $3,553MM
- Operating Income: $2,574MM
- Q2 2015: $2,619MM
- Revenue: $8,186MM
- International
- Revenue: $1,828MM
- Q2 2015: $419MM
- EBITDA: $105MM
- Q2 2015: -$38MM
- Operating Income: -$193MM
- Q2 2015: -$131MM
- Revenue: $1,828MM
Subscriber Metrics:
- Satellite Video: 20,454MM
- Net Additions: +0.342MM
- U-Verse: 4,841MM
- Net Additions: -0.391MM
- IP Broadband: 12,596MM
- Net Additions: +0.540MM
- DSL: 1,585MM
- Net Additions: -0.164MM
- Wireline Voice: 11,815MM
- Net Additions: -0.298MM
List of Key Properties:
- AT&T Mobility
- AT&T U-verse
- Cricket Wireless – prepaid wireless service
- DirecTV
- Quickplay
Forward Thinking:
- Goal is to be the global premier integrated communications company for consumers and businesses
- Video streaming services expected to rollout later in 2016
- Growing infrastructure to prepape for 5G, trials, testing, standards
- See increased growth opportunities with cross selling, integrated services, advertising, new products, OTT services and international
Links to Company Website:
Please comment below if there are data points from AT&T you’d like me to include in their next Earnings Call Summary.
