Citing the impact of COVID-19 across all its business segments, AT&T reported Q2 revenues of $41.0 billion versus $45.0 billion in the year-ago quarter.
The COVID-19 impact included 338,000 mobile accounts which ceased paying their monthly bill and for which the company continues to provide service under the Keep America Connected programs but which are now considered “disconnects” for accounting. AT&T also saw lower content and advertising revenues at WarnerMedia, drops in domestic video and legacy wireline services, and currency exchange pressure in Latin America.
“Our solid execution and focus in a challenging environment delivered significant progress in the quarter, most notably the successful launch of HBO Max, resilient free cash flow and a strengthened balance sheet,” said John Stankey, AT&T chief executive officer. “Our resilient cash from operations continues to support investments in growth areas, dividend payments and debt retirement. We are aggressively working opportunities to sharpen our focus, transform our operations and continue investing in growth areas, with the customer at the center of everything we do.”
Highlights:
- Mobile service revenues were down 1.1% due to decline in international roaming; equipment revenues up year over year.
- 17.7 million premium TV subscribers – 886,000 net loss; 91,000 attributed to Keep America Connected programs.
- 225,000 AT&T Fiber net adds
- Operating expenses were $37.4 billion versus $37.5 billion in the year-ago quarter, essentially flat.
- Operating income was $3.5 billion versus $7.5 billion in the year-ago quarter
