Wednesday, January 27, 2016

AT&T Adds 2.8 Million Mobile Subs in Q4

Citing strong wireless net adds, AT&T reported consolidated Q4 2015 revenues of $42.1 billion, up more than 22% versus the year-earlier period largely due to the acquisition of DIRECTV. Compared with results for the fourth quarter of 2014, operating expenses were $34.6 billion versus $39.9 billion; operating income was $7.5 billion versus $(5.5) billion; and operating income margin was 17.9% versus (15.9)% in the year-ago quarter. Fourth-quarter 2015 net income attributable to AT&T totaled $4.0 billion, or $0.65 per share, compared to a net loss of $4.0 billion, or $(0.77) per share, in the year-ago quarter. Adjusting for the $0.22 non-cash actuarial gain on benefit plans from the annual remeasurement process and $0.20 of costs primarily for merger- and integration-related items, earnings per share was $0.63 compared to an adjusted $0.56 in the year-ago quarter, an increase of 12.5%.

“We now have a unique set of capabilities that positions us for growth and also gives us a strategic advantage in providing consumers and businesses the integrated mobile, video and data solutions they want,” said Randall Stephenson, AT&T chairman and CEO. “Our DIRECTV integration is going well, and the customer response to our new integrated mobile and entertainment offers is strong. Throughout this year, we plan to launch a variety of new video entertainment packages that give customers even more choices. “We’re also seeing terrific results from our expansion into the Mexican mobile market. Our LTE network now covers 355 million people and businesses, and in the quarter we had 2.8 million wireless net additions,” Stephenson said. 

Some highlights from the quarterly report:

  • Full-year capital investment of $20.7 billion
  • 2.8 million wireless net adds; 1.6 million branded (postpaid and prepaid) net adds
  • 4G LTE network coverage expands to 355 million POPs
  • 2.2 million U.S. wireless net adds with gains in every category
  • Postpaid churn of 1.18% and total churn of 1.50%, both down year over year
  • 638,000 Mexico wireless branded net adds, LTE network reaches 44 million POPs
  • Business Solutions service revenues down slightly year over year
  • Strategic business services revenues of $2.8 billion, up 10.3% and up 12.4% when adjusted for foreign exchange
  • 214,000 U.S. DIRECTV net adds; total video subscribers down slightly
  • 192,000 total IP broadband net adds

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