AT&T posted solid results for the third quarter of 2024, reflecting continued growth in its Mobility and fiber broadband segments. Total revenues reached $30.2 billion, slightly down from $30.4 billion in the same quarter last year, largely due to lower Business Wireline and equipment sales. However, Mobility service revenues, driven by 5G adoption, increased 4% year over year to $16.5 billion. The company added 403,000 postpaid phone subscribers during the quarter, bringing its total to over 19 straight quarters of strong net adds. Postpaid phone churn remained low at 0.78%, underscoring AT&T’s strong customer retention.
In fiber broadband, AT&T reported 226,000 net additions, marking 19 consecutive quarters of over 200,000 fiber net adds. Total consumer broadband revenues grew 6.4% to $2.8 billion. The company has now passed 28.3 million locations with fiber and is on track to surpass 30 million by the end of 2025. AT&T continues to invest in its infrastructure, with capital expenditures of $5.3 billion in the quarter and free cash flow of $5.1 billion.
Despite challenges from severe weather and a labor stoppage in the Southeast, AT&T reaffirmed its full-year 2024 financial outlook. The company projects wireless service revenue growth around 3%, broadband revenue growth of more than 7%, and adjusted EBITDA growth in the 3% range. CEO John Stankey emphasized AT&T’s leadership in converging 5G and fiber services, noting that these results strengthen the company’s competitive position going forward.
“We delivered another strong and consistent quarter, furthering our leadership in converged 5G and fiber connectivity,” said John Stankey, CEO of AT&T. “We continue to grow our largest business—Mobility—the right way with what we expect will be industry-leading postpaid phone churn for the 13th time in 15 quarters.”
• Total revenues: $30.2 billion, slightly down from $30.4 billion last year
• Mobility service revenues up 4% year over year, reaching $16.5 billion
• 403,000 postpaid phone net additions, continuing 19 quarters of subscriber growth
• Postpaid phone churn at 0.78%, among the lowest in the industry
• Fiber broadband net adds: 226,000, marking 19 consecutive quarters with over 200,000 net adds
• Consumer broadband revenues: $2.8 billion, a 6.4% increase year over year
• 28.3 million consumer and business locations passed with fiber
• On track to surpass 30 million fiber-passed locations by 2025
• Capital expenditures: $5.3 billion in Q3 2024
• Free cash flow: $5.1 billion in Q3 2024
• Adjusted EBITDA: $11.6 billion
• Full-year 2024 wireless service revenue growth projected at 3%
• Full-year broadband revenue growth projected at 7%+
• Full-year adjusted EBITDA growth expected in the 3% range
• Full-year capital investments projected in the $21-$22 billion range
• Free cash flow for 2024 expected to be between $17 and $18 billion
• AT&T expects to achieve a net debt-to-adjusted EBITDA ratio of 2.5x by the first half of 2025
Segment Highlights:
Mobility:
• Total revenues: $21.1 billion, up 1.7% year over year
• Service revenues: $16.5 billion, up 4% year over year
• Equipment revenues: $4.5 billion, down 5.7% due to lower sales volumes
• Operating income: $7 billion, up 3.5% year over year
• EBITDA: $9.5 billion, up 6.7%
• EBITDA service margin: 57.4%, up 150 basis points year over year
• Postpaid phone ARPU (Average Revenue Per User): $57.07, up 1.9%
• Postpaid churn: 0.93%; postpaid phone churn: 0.78%
• 617,000 total wireless net adds, including 403,000 postpaid phone net adds and 275,000 prepaid net adds
Consumer Wireline:
• Total revenues: $3.4 billion, up 2.6% year over year
• Broadband revenues: $2.8 billion, up 6.4% year over year
• Fiber revenues: up 16.7%
• Fiber ARPU: $70.36, up 3.2% year over year
• Operating income: $196 million, up 22.5% year over year
• EBITDA: $1.1 billion, up 8.6%
• EBITDA margin: 32.8%, up 180 basis points year over year
Business Wireline:
• Revenues: $4.6 billion, down 11.8% year over year
• EBITDA: $1.4 billion, down 20% year over year
• EBITDA margin: 29.4%, down 310 basis points year over year
• Declines primarily driven by reduced demand for legacy voice and data services
Outlook:
• Wireless service revenue growth of around 3% for the full year
• Broadband revenue growth of over 7% for 2024
• Adjusted EBITDA growth of 3% expected for 2024
• Capital investments projected at $21-$22 billion for 2024
• Free cash flow in the range of $17-$18 billion for 2024
• Net debt-to-adjusted EBITDA target of 2.5x by H1 2025
• Continued progress in fiber deployments, on track to pass over 30 million locations by the end of 2025
