Delaware | 001-08610 | 43-1301883 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||||||
208 S. Akard St., Dallas, Texas
(Address of Principal Executive Offices)
|
75202
(Zip Code)
|
|||||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
||||||||||||
Common Shares (Par Value $1.00 Per Share) | T | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A | T PRA | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C | T PRC | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.400% Global Notes due March 15, 2024 | T 24A | New York Stock Exchange | ||||||||||||
AT&T Inc. Floating Rate Global Notes due March 6, 2025 | T 25A | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.550% Global Notes due November 18, 2025 | T 25B | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.500% Global Notes due December 17, 2025 | T 25 | New York Stock Exchange |
Title of each class |
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||||||||||||
AT&T Inc. 0.250% Global Notes due March 4, 2026 | T 26E | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.800% Global Notes due September 5, 2026 | T 26D | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.900% Global Notes due December 4, 2026 | T 26A | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.600% Global Notes due May 19, 2028 | T 28C | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.350% Global Notes due September 5, 2029 | T 29D | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.375% Global Notes due September 14, 2029 | T 29B | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.600% Global Notes due December 17, 2029 | T 29A | New York Stock Exchange | ||||||||||||
AT&T Inc. 0.800% Global Notes due March 4, 2030 | T 30B | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.950% Global Notes due April 30, 2031 | T 31F | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.050% Global Notes due May 19, 2032 | T 32A | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.550% Global Notes due December 17, 2032 | T 32 | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.200% Global Notes due November 18, 2033 | T 33 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.375% Global Notes due March 15, 2034 | T 34 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.300% Global Notes due November 18, 2034 | T 34C | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.450% Global Notes due March 15, 2035 | T 35 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.150% Global Notes due September 4, 2036 | T 36A | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.600% Global Notes due May 19, 2038 | T 38C | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.800% Global Notes due September 14, 2039 | T 39B | New York Stock Exchange | ||||||||||||
AT&T Inc. 7.000% Global Notes due April 30, 2040 | T 40 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.250% Global Notes due June 1, 2043 | T 43 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.875% Global Notes due June 1, 2044 | T 44 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.000% Global Notes due June 1, 2049 | T 49A | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.250% Global Notes due March 1, 2050 | T 50 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.750% Global Notes due September 1, 2050 | T 50A | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.350% Global Notes due November 1, 2066 | TBB | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.625% Global Notes due August 1, 2067 | TBC | New York Stock Exchange |
(d) |
Exhibits | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
AT&T INC. | |||||
Date: April 24, 2024 |
By: /s/ Sabrina Sanders .
Sabrina Sanders
Senior Vice President - Chief Accounting Officer
and Controller
|
Communications Segment | |||||||||||
Dollars in millions | First Quarter | Percent | |||||||||
Unaudited | 2024 | 2023 | Change | ||||||||
Operating Revenues | $ 28,857 | $ 29,152 | (1.0%) | ||||||||
Operating Income | 6,745 | 6,743 | ---% | ||||||||
Operating Income Margin |
23.4% | 23.1% | 30 BP |
Mobility | |||||||||||
Dollars in millions; Subscribers in thousands | First Quarter | Percent | |||||||||
Unaudited | 2024 | 2023 | Change | ||||||||
Operating Revenues | $ 20,594 | $ 20,582 |
0.1% | ||||||||
Service |
15,994 | 15,483 | 3.3% | ||||||||
Equipment |
4,600 | 5,099 | (9.8%) | ||||||||
Operating Expenses | 14,126 | 14,311 | (1.3%) | ||||||||
Operating Income | 6,468 | 6,271 | 3.1% | ||||||||
Operating Income Margin |
31.4% | 30.5% | 90 BP | ||||||||
EBITDA* | $ 8,955 | $ 8,369 | 7.0% | ||||||||
EBITDA Margin* |
43.5% | 40.7% | 280 BP | ||||||||
EBITDA Service Margin* |
56.0% | 54.1% | 190 BP | ||||||||
Total Wireless Net Adds (excl. Connected Devices)1 |
741 | 690 | |||||||||
Postpaid |
389 |
542 | |||||||||
Postpaid phone |
349 | 424 | |||||||||
Postpaid other |
40 | 118 | |||||||||
Prepaid phone |
1 | 40 | |||||||||
Postpaid Churn | 0.89 % | 0.99 % | (10 BP) | ||||||||
Postpaid Phone-Only Churn | 0.72 % | 0.81 % | (9 BP) | ||||||||
Prepaid Churn | 2.77 % | 2.73 % | 4 BP | ||||||||
Postpaid Phone ARPU | $55.57 | $55.05 | 0.9% |
Business Wireline | |||||||||||
Dollars in millions | First Quarter | Percent | |||||||||
Unaudited | 2024 | 2023 | Change | ||||||||
Operating Revenues | $ 4,913 | $ 5,331 | (7.8%) | ||||||||
Operating Expenses | 4,849 | 4,953 | (2.1%) | ||||||||
Operating Income | 64 | 378 | (83.1%) | ||||||||
Operating Income Margin |
1.3% | 7.1% | (580 BP) | ||||||||
EBITDA* | $ 1,426 | $ 1,708 | (16.5%) | ||||||||
EBITDA Margin* |
29.0% | 32.0% | (300 BP) |
Consumer Wireline | |||||||||||
Dollars in millions; Subscribers in thousands | First Quarter | Percent | |||||||||
Unaudited | 2024 | 2023 | Change | ||||||||
Operating Revenues | $ 3,350 | $ 3,239 | 3.4% | ||||||||
Broadband |
2,722 | 2,527 | 7.7% | ||||||||
Operating Expenses | 3,137 | 3,145 | (0.3%) | ||||||||
Operating Income | 213 | 94 | ---% | ||||||||
Operating Income Margin |
6.4% | 2.9% | 350 BP | ||||||||
EBITDA* | $ 1,094 | $ 955 | 14.6% | ||||||||
EBITDA Margin* |
32.7% | 29.5% | 320 BP | ||||||||
Broadband Net Adds (excluding DSL) |
55 | (23) | |||||||||
Fiber |
252 | 272 | |||||||||
Non Fiber |
(197) | (295) | |||||||||
AT&T Internet Air |
110 | - | |||||||||
Broadband ARPU | $65.98 | $61.31 | 7.6% | ||||||||
Fiber ARPU | $68.61 | $65.92 | 4.1% |
Latin America Segment – Mexico | |||||||||||
Dollars in millions; Subscribers in thousands | First Quarter | Percent | |||||||||
Unaudited | 2024 | 2023 | Change | ||||||||
Operating Revenues | $ 1,063 | $ 883 | 20.4% | ||||||||
Service |
690 | 591 | 16.8% | ||||||||
Equipment |
373 | 292 | 27.7% | ||||||||
Operating Expenses | 1,060 | 913 | 16.1% | ||||||||
Operating Income/(Loss) | 3 | (30) | ---% | ||||||||
EBITDA* | 180 | 145 | 24.1% | ||||||||
Total Wireless Net Adds | 143 | 10 | |||||||||
Postpaid |
116 | 49 | |||||||||
Prepaid |
79 | (58) | |||||||||
Reseller |
(52) | 19 |
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Income | |||||||||||
Dollars in millions except per share amounts | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Operating Revenues | |||||||||||
Service | $ | 24,842 | $ | 24,617 | 0.9 | % | |||||
Equipment | 5,186 | 5,522 | (6.1) | % | |||||||
Total Operating Revenues | 30,028 | 30,139 | (0.4) | % | |||||||
Operating Expenses | |||||||||||
Cost of revenues | |||||||||||
Equipment | 5,143 | 5,658 | (9.1) | % | |||||||
Other cost of revenues (exclusive of depreciation
and amortization shown separately below)
|
6,811 | 6,673 | 2.1 | % | |||||||
Selling, general and administrative | 7,021 | 7,175 | (2.1) | % | |||||||
Asset impairments and abandonments and restructuring | 159 | — | — | % | |||||||
Depreciation and amortization | 5,047 | 4,631 | 9.0 | % | |||||||
Total Operating Expenses | 24,181 | 24,137 | 0.2 | % | |||||||
Operating Income | 5,847 | 6,002 | (2.6) | % | |||||||
Interest Expense | 1,724 | 1,708 | 0.9 | % | |||||||
Equity in Net Income of Affiliates | 295 | 538 | (45.2) | % | |||||||
Other Income (Expense) — Net | 451 | 935 | (51.8) | % | |||||||
Income Before Income Taxes | 4,869 | 5,767 | (15.6) | % | |||||||
Income Tax Expense | 1,118 | 1,314 | (14.9) | % | |||||||
Net Income | 3,751 | 4,453 | (15.8) | % | |||||||
Less: Net Income Attributable to Noncontrolling Interest | (306) | (225) | (36.0) | % | |||||||
Net Income Attributable to AT&T | $ | 3,445 | $ | 4,228 | (18.5) | % | |||||
Less: Preferred Stock Dividends | (50) | (52) | 3.8 | % | |||||||
Net Income Attributable to Common Stock | $ | 3,395 | $ | 4,176 | (18.7) | % | |||||
Basic Earnings Per Share Attributable to Common Stock | $ | 0.47 | $ | 0.58 | (19.0) | % | |||||
Weighted Average Common Shares Outstanding (000,000) | 7,192 | 7,168 | 0.3 | % | |||||||
Diluted Earnings Per Share Attributable to Common Stock | $ | 0.47 | $ | 0.57 | (17.5) | % | |||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,193 | 7,474 | (3.8) | % | |||||||
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Balance Sheets | |||||||||||
Dollars in millions | |||||||||||
Mar. 31, | Dec. 31, | ||||||||||
2024 | 2023 | ||||||||||
Assets | (Unaudited) | ||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 3,520 | $ | 6,722 | |||||||
Accounts receivable – net of related allowances for credit loss of $463 and $499 | 9,577 | 10,289 | |||||||||
Inventories | 2,127 | 2,177 | |||||||||
Prepaid and other current assets | 15,221 | 17,270 | |||||||||
Total current assets | 30,445 | 36,458 | |||||||||
Property, Plant and Equipment – Net | 127,851 | 128,489 | |||||||||
Goodwill – Net | 67,854 | 67,854 | |||||||||
Licenses – Net | 127,423 | 127,219 | |||||||||
Other Intangible Assets – Net | 5,281 | 5,283 | |||||||||
Investments in and Advances to Equity Affiliates | 891 | 1,251 | |||||||||
Operating Lease Right-Of-Use Assets | 20,668 | 20,905 | |||||||||
Other Assets | 19,015 | 19,601 | |||||||||
Total Assets | $ | 399,428 | $ | 407,060 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | 7,060 | $ | 9,477 | |||||||
Accounts payable and accrued liabilities | 31,973 | 35,852 | |||||||||
Advanced billings and customer deposits | 3,713 | 3,778 | |||||||||
Dividends payable | 2,088 | 2,020 | |||||||||
Total current liabilities | 44,834 | 51,127 | |||||||||
Long-Term Debt | 125,704 | 127,854 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||
Deferred income taxes | 58,820 | 58,666 | |||||||||
Postemployment benefit obligation | 8,743 | 8,734 | |||||||||
Operating lease liabilities | 17,291 | 17,568 | |||||||||
Other noncurrent liabilities | 23,441 | 23,696 | |||||||||
Total deferred credits and other noncurrent liabilities | 108,295 | 108,664 | |||||||||
Redeemable Noncontrolling Interest | 1,975 | 1,973 | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 7,621 | 7,621 | |||||||||
Additional paid-in capital | 111,599 | 114,519 | |||||||||
Retained (deficit) earnings | (1,570) | (5,015) | |||||||||
Treasury stock | (15,277) | (16,128) | |||||||||
Accumulated other comprehensive income | 2,167 | 2,300 | |||||||||
Noncontrolling interest | 14,080 | 14,145 | |||||||||
Total stockholders’ equity | 118,620 | 117,442 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 399,428 | $ | 407,060 | |||||||
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | ||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | 3,751 | $ | 4,453 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 5,047 | 4,631 | |||||||||
Provision for uncollectible accounts | 472 | 477 | |||||||||
Deferred income tax expense | 479 | 529 | |||||||||
Net (gain) loss on investments, net of impairments | 201 | (93) | |||||||||
Pension and postretirement benefit expense (credit) | (471) | (670) | |||||||||
Asset impairments and abandonments and restructuring | 159 | — | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 512 | 620 | |||||||||
Other current assets | 629 | 364 | |||||||||
Accounts payable and other accrued liabilities | (3,497) | (3,409) | |||||||||
Equipment installment receivables and related sales | 24 | (243) | |||||||||
Deferred customer contract acquisition and fulfillment costs | 103 | (22) | |||||||||
Postretirement claims and contributions | (54) | (89) | |||||||||
Other - net | 192 | 130 | |||||||||
Total adjustments | 3,796 | 2,225 | |||||||||
Net Cash Provided by Operating Activities | 7,547 | 6,678 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (3,758) | (4,335) | |||||||||
Acquisitions, net of cash acquired | (211) | (291) | |||||||||
Dispositions | 8 | 15 | |||||||||
Distributions from DIRECTV in excess of cumulative equity in earnings | 194 | 774 | |||||||||
(Purchases), sales and settlements of securities and investments - net | 1,079 | 19 | |||||||||
Other - net | (273) | — | |||||||||
Net Cash Used in Investing Activities | (2,961) | (3,818) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with original maturities of three months or less | 1,933 | (536) | |||||||||
Issuance of other short-term borrowings | 491 | 3,627 | |||||||||
Repayment of other short-term borrowings | (1,996) | — | |||||||||
Issuance of long-term debt | — | 3,366 | |||||||||
Repayment of long-term debt | (4,685) | (5,945) | |||||||||
Repayment of note payable to DIRECTV | — | (130) | |||||||||
Payment of vendor financing | (841) | (2,113) | |||||||||
Purchase of treasury stock | (157) | (188) | |||||||||
Issuance of treasury stock | — | 3 | |||||||||
Dividends paid | (2,034) | (2,014) | |||||||||
Other - net | (526) | 219 | |||||||||
Net Cash Used in Financing Activities | (7,815) | (3,711) | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | (3,229) | (851) | |||||||||
Cash and cash equivalents and restricted cash beginning of year | 6,833 | 3,793 | |||||||||
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 3,604 | $ | 2,942 | |||||||
AT&T Inc. | |||||||||||
Consolidated Supplementary Data | |||||||||||
Supplementary Financial Data | |||||||||||
Dollars in millions except per share amounts | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Capital expenditures | |||||||||||
Purchase of property and equipment | $ | 3,721 | $ | 4,291 | (13.3) | % | |||||
Interest during construction | 37 | 44 | (15.9) | % | |||||||
Total Capital Expenditures | $ | 3,758 | $ | 4,335 | (13.3) | % | |||||
Acquisitions, net of cash acquired | |||||||||||
Business acquisitions | $ | — | $ | — | — | % | |||||
Spectrum acquisitions | 145 | 63 | — | % | |||||||
Interest during construction - spectrum | 66 | 228 | (71.1) | % | |||||||
Total Acquisitions | $ | 211 | $ | 291 | (27.5) | % | |||||
Cash paid for interest | $ | 2,077 | $ | 1,971 | 5.4 | % | |||||
Cash paid for income taxes, net of (refunds) | $ | (9) | $ | 10 | — | % | |||||
Dividends Declared per Common Share | $ | 0.2775 | $ | 0.2775 | — | % | |||||
End of Period Common Shares Outstanding (000,000) | 7,170 | 7,149 | 0.3 | % | |||||||
Debt Ratio | 52.4 | % | 55.9 | % | (350) | BP | |||||
Total Employees | 148,290 | 157,790 | (6.0) | % | |||||||
Segment Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Segment Operating Revenues | |||||||||||
Mobility | $ | 20,594 | $ | 20,582 | 0.1 | % | |||||
Business Wireline | 4,913 | 5,331 | (7.8) | % | |||||||
Consumer Wireline | 3,350 | 3,239 | 3.4 | % | |||||||
Total Segment Operating Revenues | 28,857 | 29,152 | (1.0) | % | |||||||
Segment Operating Income | |||||||||||
Mobility | 6,468 | 6,271 | 3.1 | % | |||||||
Business Wireline | 64 | 378 | (83.1) | % | |||||||
Consumer Wireline | 213 | 94 | — | % | |||||||
Total Segment Operating Income | $ | 6,745 | $ | 6,743 | — | % | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Broadband Connections | |||||||||||
Broadband | 15,143 | 15,061 | 0.5 | % | |||||||
DSL | 191 | 284 | (32.7) | % | |||||||
Total Broadband Connections | 15,334 | 15,345 | (0.1) | % | |||||||
Voice Connections | |||||||||||
Retail Consumer Switched Access Lines | 3,934 | 4,938 | (20.3) | % | |||||||
Consumer VoIP Connections |
2,467 | 2,835 | (13.0) | % | |||||||
Total Retail Consumer Voice Connections | 6,401 | 7,773 | (17.7) | % | |||||||
First Quarter | Percent | ||||||||||
2024 | 2023 | Change | |||||||||
Broadband Net Additions | |||||||||||
Broadband | 65 | (14) | — | % | |||||||
DSL | (19) | (27) | 29.6 | % | |||||||
Total Broadband Net Additions | 46 | (41) | — | % | |||||||
Mobility Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Operating Revenues | |||||||||||
Service | $ | 15,994 | $ | 15,483 | 3.3 | % | |||||
Equipment | 4,600 | 5,099 | (9.8) | % | |||||||
Total Operating Revenues | 20,594 | 20,582 | 0.1 | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 11,639 | 12,213 | (4.7) | % | |||||||
Depreciation and amortization | 2,487 | 2,098 | 18.5 | % | |||||||
Total Operating Expenses | 14,126 | 14,311 | (1.3) | % | |||||||
Operating Income | $ | 6,468 | $ | 6,271 | 3.1 | % | |||||
Operating Income Margin | 31.4 | % | 30.5 | % | 90 | BP | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Mobility Subscribers | |||||||||||
Postpaid | 87,450 | 85,421 | 2.4 | % | |||||||
Postpaid phone | 71,558 | 70,049 | 2.2 | % | |||||||
Prepaid | 19,211 | 19,200 | 0.1 | % | |||||||
Reseller | 7,852 | 6,192 | 26.8 | % | |||||||
Total Mobility Subscribers1 |
114,513 | 110,813 | 3.3 | % | |||||||
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems. | |||||||||||
First Quarter | Percent | ||||||||||
2024 | 2023 | Change | |||||||||
Mobility Net Additions | |||||||||||
Postpaid Phone Net Additions | 349 | 424 | (17.7) | % | |||||||
Total Phone Net Additions | 350 | 464 | (24.6) | % | |||||||
Postpaid | 389 | 542 | (28.2) | % | |||||||
Prepaid | 1 | 40 | (97.5) | % | |||||||
Reseller | 351 | 108 | — | % | |||||||
Total Mobility Net Additions1 |
741 | 690 | 7.4 | % | |||||||
Postpaid Churn | 0.89 | % | 0.99 | % | (10) BP | ||||||
Postpaid Phone-Only Churn | 0.72 | % | 0.81 | % | (9) BP | ||||||
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. | |||||||||||
Business Wireline Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Operating Revenues | |||||||||||
Service | $ | 4,700 | $ | 5,200 | (9.6) | % | |||||
Equipment | 213 | 131 | 62.6 | % | |||||||
Total Operating Revenues | 4,913 | 5,331 | (7.8) | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 3,487 | 3,623 | (3.8) | % | |||||||
Depreciation and amortization | 1,362 | 1,330 | 2.4 | % | |||||||
Total Operating Expenses | 4,849 | 4,953 | (2.1) | % | |||||||
Operating Income | $ | 64 | $ | 378 | (83.1) | % | |||||
Operating Income Margin | 1.3 | % | 7.1 | % | (580) | BP |
Consumer Wireline Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Operating Revenues | |||||||||||
Broadband | $ | 2,722 | $ | 2,527 | 7.7 | % | |||||
Legacy voice and data services | 342 | 396 | (13.6) | % | |||||||
Other service and equipment | 286 | 316 | (9.5) | % | |||||||
Total Operating Revenues | 3,350 | 3,239 | 3.4 | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 2,256 | 2,284 | (1.2) | % | |||||||
Depreciation and amortization | 881 | 861 | 2.3 | % | |||||||
Total Operating Expenses | 3,137 | 3,145 | (0.3) | % | |||||||
Operating Income | $ | 213 | $ | 94 | — | % | |||||
Operating Income Margin | 6.4 | % | 2.9 | % | 350 | BP | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Broadband Connections | |||||||||||
Total Broadband and DSL Connections | 13,930 | 13,949 | (0.1) | % | |||||||
Broadband1 |
13,784 | 13,730 | 0.4 | % | |||||||
Fiber Broadband Connections | 8,559 | 7,487 | 14.3 | % | |||||||
Voice Connections | |||||||||||
Retail Consumer Switched Access Lines | 1,553 | 1,921 | (19.2) | % | |||||||
Consumer VoIP Connections | 1,869 | 2,212 | (15.5) | % | |||||||
Total Retail Consumer Voice Connections | 3,422 | 4,133 | (17.2) | % | |||||||
1 Includes AT&T Internet Air | |||||||||||
First Quarter | Percent | ||||||||||
2024 | 2023 | Change | |||||||||
Broadband Net Additions | |||||||||||
Total Broadband and DSL Net Additions | 40 | (42) | — | % | |||||||
Broadband Net Additions1 |
55 | (23) | — | % | |||||||
Fiber Broadband Net Additions | 252 | 272 | (7.4) | % | |||||||
1 Includes AT&T Internet Air | |||||||||||
Segment Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Operating Revenues | |||||||||||
Wireless service | $ | 690 | $ | 591 | 16.8 | % | |||||
Wireless equipment | 373 | 292 | 27.7 | % | |||||||
Total Segment Operating Revenues | 1,063 | 883 | 20.4 | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 883 | 738 | 19.6 | % | |||||||
Depreciation and amortization | 177 | 175 | 1.1 | % | |||||||
Total Segment Operating Expenses | 1,060 | 913 | 16.1 | % | |||||||
Operating Income (Loss) | $ | 3 | $ | (30) | — | % | |||||
Operating Income Margin | 0.3 | % | (3.4) | % | 370 | BP | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2024 | 2023 | Change | |||||||||
Mexico Wireless Subscribers | |||||||||||
Postpaid | 5,352 | 4,973 | 7.6 | % | |||||||
Prepaid | 16,742 | 16,146 | 3.7 | % | |||||||
Reseller | 365 | 494 | (26.1) | % | |||||||
Total Mexico Wireless Subscribers | 22,459 | 21,613 | 3.9 | % | |||||||
First Quarter | Percent | ||||||||||
2024 | 2023 | Change | |||||||||
Mexico Wireless Net Additions | |||||||||||
Postpaid | 116 | 49 | — | % | |||||||
Prepaid | 79 | (58) | — | % | |||||||
Reseller | (52) | 19 | — | % | |||||||
Total Mexico Wireless Net Additions | 143 | 10 | — | % | |||||||
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
March 31, 2024 | |||||||||||||||||
Revenues | Operations and Support Expenses |
EBITDA | Depreciation and Amortization |
Operating Income (Loss) |
|||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 20,594 | $ | 11,639 | $ | 8,955 | $ | 2,487 | $ | 6,468 | |||||||
Business Wireline | 4,913 | 3,487 | 1,426 | 1,362 | 64 | ||||||||||||
Consumer Wireline | 3,350 | 2,256 | 1,094 | 881 | 213 | ||||||||||||
Total Communications | 28,857 | 17,382 | 11,475 | 4,730 | 6,745 | ||||||||||||
Latin America - Mexico | 1,063 | 883 | 180 | 177 | 3 | ||||||||||||
Segment Total | 29,920 | 18,265 | 11,655 | 4,907 | 6,748 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 134 | (134) | 120 | (254) | ||||||||||||
Parent administration support | — | 392 | (392) | 1 | (393) | ||||||||||||
Securitization fees | 26 | 165 | (139) | — | (139) | ||||||||||||
Value portfolio | 82 | 26 | 56 | 4 | 52 | ||||||||||||
Total Corporate | 108 | 717 | (609) | 125 | (734) | ||||||||||||
Certain significant items | — | 152 | (152) | 15 | (167) | ||||||||||||
Total Corporate and Other | 108 | 869 | (761) | 140 | (901) | ||||||||||||
AT&T Inc. | $ | 30,028 | $ | 19,134 | $ | 10,894 | $ | 5,047 | $ | 5,847 | |||||||
March 31, 2023 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 20,582 | $ | 12,213 | $ | 8,369 | $ | 2,098 | $ | 6,271 | |||||||
Business Wireline | 5,331 | 3,623 | 1,708 | 1,330 | 378 | ||||||||||||
Consumer Wireline | 3,239 | 2,284 | 955 | 861 | 94 | ||||||||||||
Total Communications | 29,152 | 18,120 | 11,032 | 4,289 | 6,743 | ||||||||||||
Latin America - Mexico | 883 | 738 | 145 | 175 | (30) | ||||||||||||
Segment Total | 30,035 | 18,858 | 11,177 | 4,464 | 6,713 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 169 | (169) | 144 | (313) | ||||||||||||
Parent administration support | (9) | 374 | (383) | 1 | (384) | ||||||||||||
Securitization fees | 19 | 121 | (102) | — | (102) | ||||||||||||
Value portfolio | 94 | 28 | 66 | 5 | 61 | ||||||||||||
Total Corporate | 104 | 692 | (588) | 150 | (738) | ||||||||||||
Certain significant items | — | (44) | 44 | 17 | 27 | ||||||||||||
Total Corporate and Other | 104 | 648 | (544) | 167 | (711) | ||||||||||||
AT&T Inc. | $ | 30,139 | $ | 19,506 | $ | 10,633 | $ | 4,631 | $ | 6,002 | |||||||
Free Cash Flow and Free Cash Flow Dividend Payout Ratio | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Net cash provided by operating activities1 |
$ | 7,547 | $ | 6,678 | ||||
Add: Distributions from DIRECTV classified as investing activities | 194 | 774 | ||||||
Less: Capital expenditures | (3,758) | (4,335) | ||||||
Less: Cash paid for vendor financing | (841) | (2,113) | ||||||
Free Cash Flow | 3,142 | 1,004 | ||||||
Less: Dividends paid | (2,034) | (2,014) | ||||||
Free Cash Flow after Dividends | $ | 1,108 | $ | (1,010) | ||||
Free Cash Flow Dividend Payout Ratio | 64.7 | % | 200.6 | % | ||||
1Includes distributions from DIRECTV of $324 in the first quarter of 2024 and $534 in the first quarter of 2023. |
Cash Paid for Capital Investment | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Capital Expenditures | $ | (3,758) | $ | (4,335) | ||||
Cash paid for vendor financing | (841) | (2,113) | ||||||
Cash paid for Capital Investment | $ | (4,599) | $ | (6,448) | ||||
EBITDA, EBITDA Margin and EBITDA Service Margin | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Net Income |
$ | 3,751 | $ | 4,453 | ||||
Additions: | ||||||||
Income Tax Expense | 1,118 | 1,314 | ||||||
Interest Expense | 1,724 | 1,708 | ||||||
Equity in Net (Income) of Affiliates | (295) | (538) | ||||||
Other (Income) Expense - Net | (451) | (935) | ||||||
Depreciation and amortization | 5,047 | 4,631 | ||||||
EBITDA | 10,894 | 10,633 | ||||||
Transaction and other costs | 32 | — | ||||||
Benefit-related (gain) loss | (39) | (44) | ||||||
Asset impairments and abandonments and restructuring | 159 | — | ||||||
Adjusted EBITDA1 |
$ | 11,046 | $ | 10,589 | ||||
1See "Adjusting Items" section for additional discussion and reconciliation of adjusted items. |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Communications Segment | ||||||||
Operating Income | $ | 6,745 | $ | 6,743 | ||||
Add: Depreciation and amortization | 4,730 | 4,289 | ||||||
EBITDA | $ | 11,475 | $ | 11,032 | ||||
Total Operating Revenues | $ | 28,857 | $ | 29,152 | ||||
Operating Income Margin | 23.4 | % | 23.1 | % | ||||
EBITDA Margin | 39.8 | % | 37.8 | % | ||||
Mobility | ||||||||
Operating Income | $ | 6,468 | $ | 6,271 | ||||
Add: Depreciation and amortization | 2,487 | 2,098 | ||||||
EBITDA | $ | 8,955 | $ | 8,369 | ||||
Total Operating Revenues | $ | 20,594 | $ | 20,582 | ||||
Service Revenues | 15,994 | 15,483 | ||||||
Operating Income Margin | 31.4 | % | 30.5 | % | ||||
EBITDA Margin | 43.5 | % | 40.7 | % | ||||
EBITDA Service Margin | 56.0 | % | 54.1 | % | ||||
Business Wireline | ||||||||
Operating Income | $ | 64 | $ | 378 | ||||
Add: Depreciation and amortization | 1,362 | 1,330 | ||||||
EBITDA | $ | 1,426 | $ | 1,708 | ||||
Total Operating Revenues | $ | 4,913 | $ | 5,331 | ||||
Operating Income Margin | 1.3 | % | 7.1 | % | ||||
EBITDA Margin | 29.0 | % | 32.0 | % | ||||
Consumer Wireline | ||||||||
Operating Income | $ | 213 | $ | 94 | ||||
Add: Depreciation and amortization | 881 | 861 | ||||||
EBITDA | $ | 1,094 | $ | 955 | ||||
Total Operating Revenues | $ | 3,350 | $ | 3,239 | ||||
Operating Income Margin | 6.4 | % | 2.9 | % | ||||
EBITDA Margin | 32.7 | % | 29.5 | % | ||||
Latin America Segment | ||||||||
Operating Income (Loss) | $ | 3 | $ | (30) | ||||
Add: Depreciation and amortization | 177 | 175 | ||||||
EBITDA | $ | 180 | $ | 145 | ||||
Total Operating Revenues | $ | 1,063 | $ | 883 | ||||
Operating Income Margin | 0.3 | % | -3.4 | % | ||||
EBITDA Margin | 16.9 | % | 16.4 | % |
Adjusting Items | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Operating Expenses | ||||||||
Transaction and other costs | $ | 32 | $ | — | ||||
Benefit-related (gain) loss | (39) | (44) | ||||||
Asset impairments and abandonments and restructuring |
159 | — | ||||||
Adjustments to Operations and Support Expenses | 152 | (44) | ||||||
Amortization of intangible assets | 15 | 17 | ||||||
Adjustments to Operating Expenses | 167 | (27) | ||||||
Other | ||||||||
DIRECTV intangible amortization (proportionate share) | 286 | 341 | ||||||
Benefit-related (gain) loss, impairments of investment and other |
254 | (111) | ||||||
Adjustments to Income Before Income Taxes | 707 | 203 | ||||||
Tax impact of adjustments | 162 | 46 | ||||||
Adjustments to Net Income | $ | 545 | $ | 157 | ||||
Adjusted Operating Income, Adjusted Operating Income Margin,
Adjusted EBITDA and Adjusted EBITDA Margin
| ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Operating Income | $ | 5,847 | $ | 6,002 | ||||
Adjustments to Operating Expenses | 167 | (27) | ||||||
Adjusted Operating Income | $ | 6,014 | $ | 5,975 | ||||
EBITDA | $ | 10,894 | $ | 10,633 | ||||
Adjustments to Operations and Support Expenses | 152 | (44) | ||||||
Adjusted EBITDA | $ | 11,046 | $ | 10,589 | ||||
Total Operating Revenues | $ | 30,028 | $ | 30,139 | ||||
Operating Income Margin | 19.5 | % | 19.9 | % | ||||
Adjusted Operating Income Margin | 20.0 | % | 19.8 | % | ||||
Adjusted EBITDA Margin | 36.8 | % | 35.1 | % | ||||
Adjusted Diluted EPS | ||||||||
First Quarter | ||||||||
2024 | 2023 | |||||||
Diluted Earnings Per Share (EPS) | $ | 0.47 | $ | 0.57 | ||||
DIRECTV intangible amortization (proportionate share) | 0.03 | 0.04 | ||||||
Restructuring and impairments | 0.06 | — | ||||||
Benefit-related, transaction and other costs | (0.01) | (0.01) | ||||||
Adjusted EPS | $ | 0.55 | $ | 0.60 | ||||
Year-over-year growth - Adjusted | -8.3 | % | ||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,193 | 7,474 | ||||||
Net Debt to Adjusted EBITDA - 2024 | |||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | March 31, | Four Quarters | |||||||||||||||||||||||||
20231 |
20231 |
20231 |
2024 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 11,053 | $ | 11,203 | $ | 10,555 | $ | 11,046 | $ | 43,857 | |||||||||||||||||||
End-of-period current debt | 7,060 | ||||||||||||||||||||||||||||
End-of-period long-term debt | 125,704 | ||||||||||||||||||||||||||||
Total End-of-Period Debt | 132,764 | ||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 3,520 | ||||||||||||||||||||||||||||
Less: Time Deposits | 500 | ||||||||||||||||||||||||||||
Net Debt Balance | 128,744 | ||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 2.94 | ||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed January 24, 2024. | |||||||||||||||||||||||||||||
Net Debt to Adjusted EBITDA - 2023 | |||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | March 31, | Four Quarters | |||||||||||||||||||||||||
20221 |
20221 |
20221 |
20231 |
||||||||||||||||||||||||||
Adjusted EBITDA | $ | 10,330 | $ | 10,714 | $ | 10,231 | $ | 10,589 | $ | 41,864 | |||||||||||||||||||
End-of-period current debt | 13,757 | ||||||||||||||||||||||||||||
End-of-period long-term debt | 123,727 | ||||||||||||||||||||||||||||
Total End-of-Period Debt | 137,484 | ||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 2,821 | ||||||||||||||||||||||||||||
Net Debt Balance | 134,663 | ||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 3.22 | ||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed January 24, 2024. |
Supplemental Operational Measure | ||||||||||||||||||||||||||||||||
First Quarter | ||||||||||||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | |||||||||||||||||||||||||||||||
Mobility | Business Wireline |
Adj.1 |
Business Solutions |
Mobility | Business Wireline |
Adj.1 |
Business Solutions |
Percent
Change
|
||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||
Wireless service | $ | 15,994 | $ | — | $ | (13,608) | $ | 2,386 | $ | 15,483 | $ | — | $ | (13,203) | $ | 2,280 | 4.6 | % | ||||||||||||||
Wireline service | — | 4,700 | — | 4,700 | — | 5,200 | — | 5,200 | (9.6) | % | ||||||||||||||||||||||
Wireless equipment | 4,600 | — | (3,834) | 766 | 5,099 | — | (4,326) | 773 | (0.9) | % | ||||||||||||||||||||||
Wireline equipment | — | 213 | — | 213 | — | 131 | — | 131 | 62.6 | % | ||||||||||||||||||||||
Total Operating Revenues | 20,594 | 4,913 | (17,442) | 8,065 | 20,582 | 5,331 | (17,529) | 8,384 | (3.8) | % | ||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||
Operations and support | 11,639 | 3,487 | (9,526) | 5,600 | 12,213 | 3,623 | (10,196) | 5,640 | (0.7) | % | ||||||||||||||||||||||
EBITDA | 8,955 | 1,426 | (7,916) | 2,465 | 8,369 | 1,708 | (7,333) | 2,744 | (10.2) | % | ||||||||||||||||||||||
Depreciation and amortization | 2,487 | 1,362 | (2,033) | 1,816 | 2,098 | 1,330 | (1,712) | 1,716 | 5.8 | % | ||||||||||||||||||||||
Total Operating Expenses | 14,126 | 4,849 | (11,559) | 7,416 | 14,311 | 4,953 | (11,908) | 7,356 | 0.8 | % | ||||||||||||||||||||||
Operating Income | $ | 6,468 | $ | 64 | $ | (5,883) | $ | 649 | $ | 6,271 | $ | 378 | $ | (5,621) | $ | 1,028 | (36.9) | % | ||||||||||||||
Operating Income Margin | 8.0 | % | 12.3 | % | (430) | BP | ||||||||||||||||||||||||||
1Non-business wireless reported in the Communications segment under the Mobility business unit. | ||||||||||||||||||||||||||||||||