AT&T is reporting first quarter numbers, including consolidated revenues of $38 billion, and EPS in the positive zone.
Released numbers include diluted EPS of $0.65 per share, and cash from operations of $5.7 billion against capital expenditures of $4.7 billion
“Our momentum in growing customer relationships is reaching historical levels,” said John Stankey, AT&T CEO in a press statement. “We had our best first quarter for postpaid phone net adds in more than a decade and our fiber broadband net adds remain consistently strong. Our results, including free cash flow, are in line with our expectations … AT&T has entered a new era, meeting this opportunistic moment from a position of flexibility and strength thanks to our evolving networks, enhanced customer experience, growing 5G and fiber customer base and a much stronger balance sheet. And we continue to make good consistent progress on our journey to becoming America’s best broadband provider.”
Operating income is down, around 3%, but overall revenues, according to this report, are up 5.5%.
AT&T also cites results from Warner Media:
“Total global HBO Max and HBO subscribers6 of 76.8 million, up 12.8 million year over year;” reports a BusinessWire press release, “domestic subscribers of 48.6 million, up 4.4 million year over year.”
Higher service and equipment revenues are cited as revenue providers. Operating expenses included high equipment costs, costs of 3G network decommissioning, bad debt, and HBO Max administration costs.
Postpaid churn stays about the same at .94% from .93% year-over-year.
AT&T stock dropped sharply Friday, April 8 and has crawled sideways since then.
That’s counterintuitive for some analysts who were looking for AT&T’s spinoff to crown numbers. Here’s what Motley Fool’s Mark Hake said last August:
“AT&T is breaking up into three companies, which could unlock significant value for shareholders. The threefold split is very complicated, and many investors don’t fully understand some parts of it. But those who hang on until the end of the deal next year should do quite well.”
Stay tuned.
