Citing declines in revenues from legacy wireline services, WarnerMedia and domestic video, AT&T reported consolidated Q3 revenues of $44.6 billion versus $45.7 billion in the year-ago quarter. Operating expenses were $36.7 billion versus $38.5 billion in the year-ago quarter, down 4.6% due to lower intangible asset amortization, lower Entertainment Group costs, lower Warner Bros. film and TV production costs, and cost efficiencies. Third-quarter net income attributable to AT&T was $3.7 billion, or $0.50 per diluted share, versus $4.7 billion, or $0.65 per diluted share, in the year-ago quarter.
AT&T noted growth in strategic and managed business services, domestic wireless services and IP broadband.
Mobility:
- Service revenues up 0.7% in 3Q; up 1.9% year to date
- 255,000 phone net adds (101,000 postpaid, 154,000 prepaid); 780,000 phone net adds year to date
- Total net adds of 3.7 million to reach 162.3 million in service
- Postpaid phone-only ARPU increased 0.6% versus the year-ago quarter
- Nearly 900,000 FirstNet connections across more than 9,800 agencies now in service
Entertainment Group:
- Operating income up 4.8% year to date with solid video and broadband ARPU gains
- 2.3% year-to-date EBITDA growth as Company targets stability
- Video subs impacted by focus on long-term value customer base and carriage disputes:
- 20.4 million premium TV subscribers – 1,163,000 net loss
- 1.1 million AT&T NOW subscribers – 195,000 net loss
- IP broadband revenue growth of 3.5%; 318,000 AT&T Fiber gains
- Nearly 85% of all broadband subscribers on AT&T’s fiber network have speeds of 100 megabits or more.
- Total broadband customers with speeds of 100 megabits or faster have more than doubled in the past year.
- AT&T now markets its 100% fiber network to nearly 14 million customer locations in parts of 85 major metro areas.
- Broadband penetration in the fiber footprint continues to be significantly higher than in AT&T’s non-fiber footprint with penetration rates increasing the longer we have fiber in a market.