AT&T posts big Q4 profit from tax windfall

AT&T posted Q4 revenue of $41.7 billion, down slightly from $41.8 billion a year earlier primarily due to declines in legacy wireline services, wireless service revenues and domestic video, which were mostly offset by growth in wireless equipment and International. Fourth-quarter net income attributable to AT&T was $19.0 billion, or $3.08 per diluted share, and reflects the impact of the Tax Cuts and Jobs Act, compared to $2.4 billion, or $0.39 per diluted share, in the year-ago quarter.

AT&T’s full-year 2017 revenues amounted to $160.5 billion versus $163.8 billion in 2016.

The company also confirmed plans to add $1 billion to its CAPEX budget in 2018 as a result of the tax reform legislation.

“The impact of tax reform and regulatory rationalization will be substantial and positive for the U.S. economy and AT&T,” said Randall Stephenson, AT&T Chairman and CEO. “Our FirstNet win and the opt-in by 100 percent of all states and territories will enable us to put the industry’s most robust spectrum assets to work in building a best-in-class nationwide network for public safety and first responders. On the Time Warner front, we look forward to presenting our case in court and closing the deal.”

Highlights for Q4 2017

• 4.1 million total wireless net adds for the fourth quarter, including 2.7 million in U.S., driven by connected devices, postpaid phones and prepaid, and 1.3 million in Mexico.  
• 300,000 total video net adds: 161,000 in U.S. and 139,000 in Latin America
• U.S. wireless results:
• 329,000 postpaid phone net adds
• Added nearly 700,000 branded smartphones to base
• Best-ever fourth-quarter postpaid phone churn of 0.89%
• 95,000 IP broadband net adds; 19,000 total broadband net adds; more than 7 million customer locations passed with fiber
• 161,000 total video net adds; 368,000 DIRECTV NOW net adds to reach nearly 1.2 million DIRECTV NOW subscribers
• International revenues were up 16.0% with strong growth in Mexico wireless and DIRECTV Latin America