On Wednesday, AT&T Inc (NYSE:T) reported third-quarter 2024 operating revenues of $30.21 billion, down 0.5% year over year. It marginally missed analysts’ consensus estimate of $30.44 billion.
The slow recovery in smartphone purchases affected revenue performance, Bloomberg reports.
Adjusted earnings per share of $0.60 beat the estimate of $0.57. The stock gained after the push.
Also read: Verizon Q3 earnings: Wireless plans rise with 5G offerings, $1.7 billion severance hit to drive profit, reiterates annual guidance
According to Bloomberg, AT&T’s 403,000 postpaid phone network adds an overturned consensus of 394.6 thousand.
In the Mobility segment, AT&T recorded 617,000 new wireless networks, including 429,000 postpaid phone additions.
AT&T’s mobility segment saw postpaid churn of 0.93%, compared to 0.95% a year ago.
The Consumer Wireline segment had 226 thousand AT&T Fiber net additions, which fell below the analyst consensus of 265.4 thousand due to adverse weather and operating conditions in the Southeast.
The company reported 135,000 AT&T Internet Air net additions, missing the consensus of 147,000.
AT&T’s adjusted EBITDA of $11.59 billion was up from $11.20 billion a year ago. It spent $5.3 billion on capital investments.
Net income decreased to $0.1 billion versus $3.8 billion in the year-ago quarter due to a $4.4 billion non-cash goodwill impairment charge related to the Business Wireline unit.
The company generated $10.24 billion in operating cash flow (vs. $10.34 billion in the prior year quarter) and $5.095 billion in free cash flow (vs. 5.182 billion last year).
Currently, AT&T’s dividend yield is 6.10%. Higher free cash flows could translate into shareholder returns via higher share buybacks and dividends.
Prepaid expiration amounted to 2.73%, compared to 2.78% in the previous year’s quarter. ARPU for postpaid phones only was $57.07, an increase of 1.9% compared to the prior year quarter.
Business income: Operating income was $2.12 billion, compared to $5.78 billion a year ago.
Mobility segment operating revenues increased 3.5% year over year to $7.00 billion, with a margin of 33.3% compared to 32.7% in the prior year quarter.
Business Wireline segment operating margin was (0.9)%, compared to 6.7% in the prior year quarter. Consumer Wireline segment operating margin was 5.7%, compared to 4.8% in the prior year quarter.
Outlook for FY24: AT&T reiterated wireless revenue growth in the range of 3%, broadband revenue growth of more than 7% and adjusted earnings per share of $2.15 – $2.25 versus consensus of $2.20.
