Q2 2016 – AT&T Earnings Call Summary

AT&T

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
  • Entertainment Group
    • Revenue: $12,711MM
      • Q2 2015: $5,782MM
    • EBITDA: $3,142MM
      • Q2 2015:$869MM
    • Operating Income: $1,653MM
      • Q2 2015: -$196MM
  • Consumer Mobility
    • Revenue: $8,186MM
      • Q2 2015: $8,755MM
    • EBITDA: $3,506MM
      • Q2 2015: $3,553MM
    • Operating Income: $2,574MM
      • Q2 2015: $2,619MM
  • International
    • Revenue: $1,828MM
      • Q2 2015: $419MM
    • EBITDA: $105MM
      • Q2 2015: -$38MM
    • Operating Income: -$193MM
      • Q2 2015: -$131MM

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:

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.

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