- AT&T Inc (NYSE:T) reported fourth-quarter operating revenues of $40.96 billion, down 10.4% year-over-year, beating the consensus of $40.43 billion. WarnerMedia revenue growth partially offset the Business Wireline revenue decline.
- The results reflect continuing customer growth in wireless, fiber, and HBO Max.
- Adjusted EPS of $0.78 beat the consensus of $0.76.
- In the Mobility segment, AT&T clocked 884 thousand postpaid phone net adds, 1.3 million postpaid net adds, and 24 thousand prepaid phone net adds.
- In Mobility, it saw a Postpaid phone churn of 1.02%, which increased from 0.94% last year. The Consumer Wireline segment had 271 thousand AT&T Fiber net adds.
- In the WarnerMedia segment, total revenues jumped 15.4% Y/Y to $9.9 billion. Total global HBO Max and HBO subscribers grew by 13.1 million Y/Y to 73.8 million, and Domestic HBO Max and HBO subscribers increased 5.3 million Y/Y to 46.8 million, with a Domestic ARPU of $11.15.
- AT&T's adjusted EBITDA of $11.3 billion was down 12.3% Y/Y.
- The company generated $11.3 billion in operating cash flow, up $1.2 billion Y/Y, and a free cash flow of $8.7 billion. The company spent $3.8 billion on Capex.
- Operating Income: Operating income was $5.3 billion versus $(10.7) billion in the year-ago quarter.
- Mobility segment operating income was up 5.2% Y/Y to $5.4 billion with a margin of 25.3%. Business Wireline segment operating margin was 15.2%.
- Outlook: AT&T sees FY22 revenue growth in the low-single digits range. AT&T sees an adjusted EPS of $3.10 - $3.15, below the consensus of $3.21. It sees FCF in the $23 billion range.
- Price Action: T shares traded higher by 1.74% at $26.94 in the premarket on the last check Wednesday.
