AT&T Hits Financial Targets as Revenue & Income Dip

AT&T posted Q4 consolidated revenues of $41.8 billion, down from $42.1 billion in the year-ago quarter. Compared with results for the fourth quarter of 2015, operating expenses were $37.6 billion versus $34.6 billion; operating income was $4.2 billion versus $7.5 billion; and operating income margin was 10.2% versus 17.9%.

Fourth-quarter net income attributable to AT&T totaled $2.4 billion, or $0.39 per diluted share, compared to $4.0 billion, or $0.65 per diluted share, in the year-ago quarter. Cash from operating activities was $10.1 billion in the fourth quarter, and capital expenditures were $6.5 billion.

“2016 was a transformational year for AT&T, one in which we made tremendous progress toward our goal of becoming the global leader in telecom, media and technology,” said Randall Stephenson, AT&T Chairman and CEO. “We launched DIRECTV NOW, our innovative over-the-top streaming service. Our 5G evolution plans and improved spectrum position are paving the way for the next-generation of super-fast mobile and fixed networks. And we shook-up the industry with our landscape-changing deal to acquire Time Warner, the logical next step in our strategy to bring together world-class content with best-in-class distribution which will drive innovation and more choice for consumers.”

Some highlights:

• 2.8 million wireless net adds in Q4, including 1.5 million U.S. and 1.3 million Mexico
• 9.5 million wireless net adds for full year 2016, including 6.2 million U.S. and 3.3 million Mexico
• 1.1 million branded smartphones added to subscriber base in Q4
• Best-ever postpaid phone churn of 0.98% in Q4
• Wireless postpaid churn of 1.16% in Q4
• Strong DIRECTV NOW launch with more than 200,000 paid net adds
• 235,000 U.S. DIRECTV satellite net adds with stable linear TV subscriber base
• 149,000 IP broadband net adds with stable total broadband base
• Nearly 400 million North American 4G LTE POPs

http://www.att.com