Jul. 23, 2014, 4:03 PM
Jun. 3, 2014, 2:48 PM
- AT&T's (T -0.6%) forecast for 2014 EPS growth to be at the low end of a prior mid-single digit growth is overshadowing its revenue guidance hike.
- Also: AT&T says it expects no wireless service revenue growth in Q2, as a T-Mobile-fueled price war pressures its ARPU. Service revenue grew 2.2% Y/Y in Q1, and 4.8% in Q4.
- Q2 wireless service EBITDA margin (already under pressure in Q1) to be dinged in Q2 by service revenue weakness and higher equipment sales; the latter stems from strong adoption of AT&T's Next smartphone upgrade plans. The margin is expected to be above 40% from Q2-Q4; it was at 45.4% in Q1.
- One bright spot: Q2 wireless postpaid net adds are expected to top 800K, after coming in at 625K in Q1. Postpaid churn is expected to be at 0.95% or lower, down from 1.02% a year ago.
- Next smartphone sales are expected to rise to 3.2M from Q1's 2.9M, and make up ~50% of total sales. Roughly half of all postpaid smartphone subs are now on subsidy-free Mobile Share Value plans, and ~2/3 are expected to be on one by year's end.
May. 5, 2014, 5:30 PM
- ACM, ACOR, AER, AKRX, AME, ARCC, ARCO, ARW, BCE, BCS, CBOE, CNK, COCO, CRTO, CRZO, CYNO, DISCA, DNR, DTV, DWRE, EMR, EXH, EXLP, FE, GDP, GLDD, HCP, HFC, HPT, HSH, HSIC, HTH, IFF, ISIS, KWK, MMP, MNTA, MONT, MOS, MPW, MSO, MVIS, MWIV, NRG, [[NTi]], NUS, ODP, OXF, PDCE, PQ, PRIM, RDC, RHP, RTI, RTRX, STWD, TDG, TGH, TPH, TW, UBS, VMC, VSH, VTG, WCG, WNR, XRAY, ZBRA, ZTS.
May. 1, 2014, 8:01 AM
- Thanks to aggressive pricing and a slew of promotions, T-Mobile (TMUS) added 1.3M branded postpaid subs (1.2M phone subs), 465K branded prepaid subs, and 600K non-branded subs in Q1. The branded postpaid figure dwarfs Verizon's (VZ) 539K and AT&T's (T) 625K - the difference in phone adds is even larger - and compares with a net loss of 333K for would-be suitor Sprint (S).
- Regulators mulling a Sprint/T-Mobile tie-up are doubtlessly paying attention, and the same goes for AT&T and Verizon: The former has responded more aggressively to T-Mobile's price cuts thus far than the latter.
- Thanks to the strong Q1 numbers, which come after T-Mobile added 1.645M total subs (869K branded postpaid) in Q4, the carrier now expects 2.8M-3.3M branded postpaid net adds in 2014, up from a prior 2M-3M. Cash capex is still expected to be in a range of $4.3B-$4.6B.
- At the same time, T-Mobile's strategy continues taking a near-term toll on its bottom line: Adjusted EBITDA fell 26% Y/Y to $1.09B, and T-Mobile has cut its full-year adjusted EBITDA guidance to $5.6B-$5.8B from $5.7B-$6B. Adjusted EBITDA margin fell 400 bps Q/Q to 20%.
- Service revenue rose 4.5% Y/Y to $5.34B. Branded postpaid churn fell 20 bps Q/Q and 40 bps Y/Y to 1.5% (a new record). ARPU fell $0.69 Q/Q to $50.01. "Simple free cash flow" (adjusted EBITDA - cash capex) was $141M, down from $357M in Q4 and $239M a year ago.
- TMUS +7.6% thanks to the sub adds and a Bloomberg report stating Sprint has lined up financing for a bid. Sprint +6.2%. T-Mobile parent Deutsche Telekom (DTEGY) is up 2.9% in Frankfurt.
Apr. 23, 2014, 12:46 PM
- Though investors aren't thrilled with AT&T's (T -3.3%) Q1 wireless numbers, Wells Fargo (Outperform) calls them "big time solid." The firm notes net adds and churn were better-than-expected, and thinks Q1 results suggest the telco's 2014 guidance is "quite achievable."
- Morgan Stanley (Equal-Weight) is less charitable: It estimates 500K of AT&T's 625K postpaid net adds came from tablets, and notes cheaper Mobile Share plans - launched following intense price competition and promotional efforts from T-Mobile (TMUS -3%) - led wireless service revenue growth to fall.
- Canaccord observes strong uptake for Next upgrade plans boosted subscriber adds, but expects the trend to moderate. The firm has cut its 2014 EPS estimate to $2.69 from $2.78 (consensus is at $2.71).
- On the CC (transcript), management talked up the ability of Next adoption to lower subsidy expenses, and mentioned U-verse revenue is now on a ~$14B/year run rate.
- Strong U-verse growth has narrowed AT&T's wireline revenue declines, albeit while pressuring margins. The company promises wireline margins (-110 bps in Q1 to 10%) will improve in 2016.
Apr. 22, 2014, 4:22 PM
- AT&T (T) had 625K postpaid net adds in Q1 (313K via branded tablets), up from 566K in Q4. Connected device net adds totaled 693K; prepaid and reseller net losses respectively totaled 50K and 206K.
- However, wireless service revenue rose just 2.2% Y/Y, down from 4.8% in Q4 (did price cuts play a role?). Meanwhile, wireless op. margin only rose 30 bps to 28.3% after growing 690 bps in Q4.
- Churn was at 1.39% vs. 1.43% in Q4 and 1.38% a year ago. Smartphones now account for 78% of AT&T's postpaid base, up from 77% in Q4 and 72% a year ago. AT&T's Next upgrade program saw 2.9M sign-ups. That contributed to a 52% Y/Y increase in equipment sales (pressured margins).
- Total wireless subs +8% Y/Y to 116M. Postpaid subs +4% to 73.3M.
- Wireline revenue fell 0.4% Y/Y vs. 1.4% in Q4; op. margin fell 110 bps to 10%. 634K and 201K U-verse Internet and TV subs were added vs. 630K and 194K in Q4. Total U-verse revenue rose 29% Y/Y.
- Wireline voice connections -11% Y/Y to 27.7M, broadband connections nearly flat at 16.5M, video connections +19% to 5.7M.
- $1.2B was spent on buybacks, down from $1.9B in Q4. AT&T is reiterating full-year capex and free cash flow guidance of $21B and $11B, respectively.
- Q1 results, PR
Apr. 22, 2014, 4:02 PM
Apr. 22, 2014, 12:10 AM
Apr. 21, 2014, 5:35 PM
Jan. 28, 2014, 4:27 PM
Jan. 28, 2014, 12:10 AM
Jan. 27, 2014, 5:35 PM
Jan. 23, 2014, 2:50 AM
- AT&T (T) will book a non-cash gain of approximately $7.6B on its Q4 earnings, due to changes in its pension fund and retiree benefit plans.
- AT&T has altered its assumptions on interest rates and is enjoying a better-than-expected return on assets,
- However, the carrier is also taking a $500M charge for a voluntary retirement package that 4,200 workers accepted. (8-K)
- Meanwhile, AT&T has sold an office complex east of San Francisco to MetLife (MET) and Sunset Development for over $250M. AT&T will lease back half of the 1.8M square foot property. MetLife will own 49% of the asset.
Oct. 23, 2013, 4:34 PM
- AT&T (T) saw 363K wireless postpaid net adds in Q3 (388K from tablets), down from 551K in Q2 and 398K in Q1. Verizon had 927K postpaid net adds in Q3. Thanks to new Aio and GoPhone service plans, AT&T's prepaid net adds rose to 192K from 11K in Q2 and -184K in Q1.
- Wireless service revenue +3.7% Y/Y in Q3 vs. +5.1% in Q2, thanks to a 17.6% increase in data revenue. Wireless op. margin -50 bps Y/Y to 26.4%, EBITDA service margin +40 bps to 42%. Postpaid ARPU (inc. tablets) rose 1.5% Y/Y. 75% of postpaid subs now use smartphones, up from 73% in Q2.
- 655K U-verse Internet subs and 265K U-verse TV subs were added vs. 641K and 233K in Q2. The total U-verse sub base is now above 10M.
- Wireline revenue -1% Y/Y vs. -0.9% in Q2. Data revenue +5.9%, but voice revenue -9.7% thanks to an 11.7% drop in voice connections. Wireline op. margin was 10.6%, -150 bps Y/Y.
- $1.9B was spent on buybacks, down from $3.3B in Q2. Free cash flow was $3.2B, below net income of $3.8B.
- T nearly unchanged AH. CC getting started.
- Q3 results. PR
Oct. 23, 2013, 4:02 PM
Oct. 23, 2013, 12:10 AM
- AEM, AIZ, AKAM, ALGT, ANGI, ASGN, AVB, BDN, CAKE, CDNS, CLGX, CMO, CMRE, CTXS, CVA, EFX, EGHT, EQIX, ESV, ETFC, EVR, FBHS, FFIV, FIO, FOE,FTNT, GGG, HRC, INFN, KFN, LOGI, LRCX, LSI, MLNX, NOW, NXPI, ORLY, PLCM, PLXS, QDEL, QTM, RE, SCI, SGMO, SKX, SLG, SRCL, STMP, SUSQ, SWFT, SYMC, T, TAL, TCBI, TER, TEX, TMK, TQNT, TRIP, TSCO, TYL, VAR, WLL, WRE
T vs. ETF Alternatives
AT&T Inc, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the United States and internationally. The Company has three reportable segments: Wireless, Wireline, and Other.
Other News & PR