AT&T Inc (T, Financial), the third-largest US wireless carrier, reported its second-quarter results for 2024, showcasing durable and profitable growth in its 5G and fiber customer base. The company's wireless business, which contributes about two-thirds of its revenue, continues to attract and retain high-value subscribers. AT&T also provides fixed-line enterprise services, residential fixed-line services, and has a presence in Mexico.
Performance Overview
AT&T Inc (T, Financial) reported revenues of $29.8 billion for the second quarter, slightly below the analyst estimate of $29.92 billion. The diluted earnings per share (EPS) came in at $0.49, missing the analyst estimate of $0.54. However, the adjusted EPS was $0.57, surpassing the analyst estimate.
Key Financial Achievements
Despite the challenges, AT&T Inc (T, Financial) achieved several notable financial milestones:
- Operating income of $5.8 billion; adjusted operating income of $6.3 billion
- Net income of $3.9 billion; adjusted EBITDA of $11.3 billion
- Free cash flow of $4.6 billion, up $0.4 billion year over year
Income Statement Highlights
AT&T Inc (T, Financial) reported a slight decline in revenues, down 0.4% year over year, primarily due to lower Business Wireline service revenues and declines in Mobility equipment revenues. Operating expenses increased to $24.0 billion, driven by network modernization efforts and higher depreciation related to fiber and 5G investments.
Segment Performance
| Segment | Revenue (Q2 2024) | Revenue (Q2 2023) | Change |
|---|---|---|---|
| Communications | $28.6 billion | $28.8 billion | -0.9% |
| Mobility | $20.5 billion | $20.3 billion | 0.8% |
| Business Wireline | $4.8 billion | $5.3 billion | -9.9% |
| Consumer Wireline | $3.3 billion | $3.3 billion | 0.0% |
| Latin America (Mexico) | $1.1 billion | $967 million | 14% |
Commentary and Analysis
"For the past four years, we’ve delivered consistent, positive results that have repositioned AT&T. Our solid performance this quarter demonstrates the durable benefits of our investment-led strategy," said John Stankey, AT&T CEO.
AT&T Inc (T, Financial) continues to focus on its investment-led strategy, which has proven effective in driving growth in its 5G and fiber customer base. The company's ability to attract and retain high-value subscribers is crucial for its long-term success in the competitive telecommunications industry.
Challenges and Future Outlook
While AT&T Inc (T, Financial) has shown resilience, it faces challenges such as declining Business Wireline revenues and increased operating expenses due to network modernization efforts. However, the company's strong performance in Mobility and Consumer Wireline segments, along with its strategic investments, positions it well for future growth.
For the full year 2024, AT&T Inc (T, Financial) reiterates its guidance, expecting wireless service revenue growth in the 3% range, broadband revenue growth of 7%+, and adjusted EPS in the range of $2.15-$2.25.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from AT&T Inc for further details.
