At&t Inc. · NYSE:T
At&t — Q2 2009 Earnings Presentation
18 slides from At&t's earnings presentation, Jul 23, 2009
Slide 1: AT&T Investor Update: 2Q09 Earnings Conference Call
AT&T Investor I t Update U d t 2Q09 Earnings Conference Call July 23, 2009 © 2009 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements Information set forth in this p presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect fu
Slide 3: 2Q09 AT&T Financial Summary: Solid Execution, Stable Results
2Q09 AT&T Financial Summary: Solid Execution, Stable Results AT&T Diluted Earnings Per Share Stable consolidated revenues • (0.4)% versus 2Q08 • +0.5% versus 1Q09 $0 63 $0.63 $0.55 $0.53 $0.54 Solid consolidated operating income margin $0.41 • 17.9% for 2Q09 • 18.3% 18 3% for 1H09 Strong free cash f
Slide 4: AT&T 2Q09 Highlights
AT&T 2Q09 Highlights • Strong wireless growth – 1.4 million total net adds; 1.2 million postpaid net adds, up 31.8% versus 1Q09 and up 29 0% versus 2Q08; record low postpaid churn at 1.09% 29.0% 1 09% • More than 2.4 million iPhone activations – ARPU Continued progress and churn characteristics cont
Slide 5: Consolidated Revenue Trends
Consolidated Revenue Trends $30.7 billion 2Q09 consolidated AT&T Consolidated Revenues revenues down 0.4% revenues, 0 4% year over ($ in billions) year, up 0.5% sequentially $30.9 $31.3 $31.1 $30.6 $30.7 • Growth in wireless and data services: Wireless Services +9.4% Wireline Data +5.2% 2Q08 3Q08 4Q
Slide 6: Strong Wireless Growth
Strong Wireless Growth AT&T Wireless Service Revenues Solid subscriber gains, ($ in billions) accelerated revenue growth, excellent momentum Total Subscribers $12.0 $11.7 $11.5 Wireless subscribers gains $11 3 $11.3 $11.0 • +6.7 6 7 million illi over pastt year • +1.4 million in 2Q09 79.6 Wireless s
Slide 7: Winning the High End: Significant Step Up in Postpaid Growth
Winning the High End: Significant Step Up in Postpaid Growth Postpaid Postpaid • Fourth consecutive quarter with Gross Adds Net Adds a double double-digit digit year year-over-year over year (in millions) (in millions) improvement in postpaid net adds 3.2 1.2 • Lowest postpaid churn in company’s 2.8
Slide 8: Integrated Device Leadership, More Than 2.4 Million iPhone Activations
Integrated Device Leadership, More Than 2.4 Million iPhone Activations Percentage g of Postpaid p Subscribers with Integrated Devices Including iPhone, more than 3.5 million second-quarter increase 36.0% in total integrated devices, to reach more than 22 million in service 31 7% 31.7% Average integr
Slide 9: Sustained Robust Wireless Data Growth, Up 37.2%
Sustained Robust Wireless Data Growth, Up 37.2% Wireless Data Revenues ($ in billions) Wireless Wi l d data t revenue growth th drivers: nation’s fastest 3G data $3.4 Postpaid Data ARPU network, broad array of devices, rich applications $3.2 $3 1 $3.1 • >108 billion text messages sent $17.72 in 2Q09
Slide 10: Wireless Margin Reflects iPhone Volumes, Operational Improvements
Wireless Margin Reflects iPhone Volumes, Operational Improvements Sequential q margin g impact p AT&T Wireless OIBDA significantly less than with Service Margin iPhone 3G launch in 3Q08, reflecting: • Growing iPhone subscriber b base with ith attractive tt ti ARPU iPhone 3G iPhone 3GS Mid-40% Launch
Slide 11: Continued AT&T U-verse Growth
Continued AT&T U U-verse verse Growth AT&T U-verse TV Subscribers (in thousands) AT&T U-verse TV subscriber growth 1,577 d li delivering i high hi h b broadband db d andd VoIP U-verse VoIP Subscribers attach rates 1,329 • Broadband attach rate continues to run above 90% and VoIP attach rate is above
Slide 12: Broadband Growth Remains Strong
Broadband Growth Remains Strong AT&T Total Broadband Connections Improved broadband net adds Wireline Broadband Users Plus Wireless 3G driven by U U-verse verse growth and LaptopConnect Users (in millions) stand-alone broadband connections U-verse Broadband Subscribers (in thousands) • 209,000 secon
Slide 13: Wireline Consumer Revenue and Connections Trends
Wireline Consumer Revenue and Connections Trends Regional g consumer ARPU Regional Consumer Change in growth and improved 2Q Revenue Per Regional Consumer connections trends driven Household Served Connections (in thousands) by U-verse TV and broadband $64.44 2Q08 2Q09 • Sixth consecutive quarter $6
Slide 14: AT&T Business Solutions
AT&T Business Solutions Business trends consistent with AT&T Business Solutions Revenues 1Q09 – strong growth in IP data ($ in billions) and strategic services offset by Year-Over- 2Q09 Year Growth economic pressures Total $10.6 (5.6)% • 15.2% growth in strategic service Services (Excludes CPE) $10.
Slide 15: Stable Consolidated Margin
Stable Consolidated Margin AT&T Consolidated C lid t d Operating Income Margin Margin stability reflects operational improvements in both wireless and wireline with volume-related iPhone 18.6% 18.3% pressures in 2Q09 Major operational cost initiatives on track: • Consolidate support organizations •
Slide 16: Strong Cash Flow, Balance Sheet Strength
Strong Cash Flow, Balance Sheet Strength Free cash flow and 1H09 AT&T Cash Summary capital expenditures ($ in billions) in line with previously outlined full-year outlook Cash From Operations Capital Expenditures $7 4 $7.4 • C Cash h from f operations ti $15.8 improvement reflects $13.5 Free Cash Fl
Slide 17: 2Q09 Summary: Strong Execution, on Track with Full-Year Outlook
2Q09 Summary: Strong Execution, on Track with Full-Year Outlook • Excellent wireless momentum – strong postpaid growth; leader in integrated devices; innovation in devices, applications and new services • Solid U U-verse verse growth – high broadband and voice attach rates • Continued growth in adva
Slide 18: AT&T Investor Update
AT&T Investor I Update U d 2Q09 Earnings Conference Call July 23, 2009 © 2009 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are