- AT&T (NYSE:T) is up 1.8% after hours, following a solid Q2 beat on profit and expanding margins as well as healthy cash flow. Revenues that rose 1.4% Y/Y were up 2.2% if adjusting for the sale of its Connecticut wireline properties.
- Revenue breakout: Service, $29.5B (down 0.1%); Equipment, $3.47B (up 15.1%). By segment: Wireless, $18.3B (up 2.1%); Wireline, $14.2B (down 2.9%).
- Wireless had 2.1M net adds (410K postpaid, 331K prepaid and 1M connected cars). Total churn was 1.31% and postpaid churn just 1.01%. Phone-only postpaid ARPU increased 6.1% Y/Y. The wireless operating margin was 25.6%.
- Wireline voice connections dropped by 652K (a 14% Y/Y improvement); total wireline broadband connections dropped by 136K and U-verse video connections fell by 22K.
- Cash from operations of $9.2B resulted in free cash flow of $4.5B.
- Conference call at 4:30 p.m. ET.
- Press release