AT&T Inc. · NYSE:T
AT&T — Q1 2014 Earnings Presentation
17 slides from AT&T's earnings presentation, Apr 22, 2014
Slide 1: AT&T Investor Update
AT&T Investor Update April 22, 2014 © 2014 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 the property of their respective ow
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements Information set forth in this 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 futu
Slide 3: 1Q14 Financial Summary – Strong First-Quarter Results
1Q14 Financial Summary – Strong First-Quarter Results Consolidated Revenues Adjusted EPS* First-quarter adjusted EPS of $0.71, Operating Income Margin up nearly 11 percent year over year $32.5 $0.71 $31.4 $0.64 Strongest revenue growth in more 3.6% 11% than two years, up 3.6 percent 19.3% Expanding
Slide 4: Transforming our Business for Growth
Transforming our Business for Growth Premier Network Best-in-Class network Experience: Ultra-Fast, Project VIP – Expand LTE, U-verse and fiber Mobile and IP Domain 2.0 – Virtualized, software-defined networks Changing the model from: Transforming the • Device subsidies to simplified, transparent pri
Slide 5: 1Q14 Highlights: Business Transformation Drives Strong Growth
1Q14 Highlights: Business Transformation Drives Strong Growth with Wireless, U-verse® and Strategic Business Services Gains Best Consolidated Revenue Growth in More than Two Years • Consolidated revenue growth of 3.6 percent; slightly improving margins • Adjusted earnings per share growth of nearly
Slide 6: Strongest First-Quarter Postpaid Net Adds in Five Years
Strongest First-Quarter Postpaid Net Adds in Five Years with Improving Subscriber Trends Total Subscribers* Postpaid Net Adds More than 1 million total net adds (in millions) (in thousands) Total Churn Postpaid Churn 625 • Improved trends in every category 116.0 • Smartphones and tablets drive 107.3
Slide 7: Total Wireless Revenues Up 7.0 Percent
Total Wireless Revenues Up 7.0 Percent Total Wireless Revenues Revenue mix shifts with AT&T Next℠ ($ in billions) Equipment revenue • Equipment revenue up more than $17.9 50 percent $16.1 $16.7 • Service revenues up 2.2 percent 7.0% More than 40 percent of smartphone gross adds and upgrades on AT&T
Slide 8: Accelerating Mobile Share Gains Drive Data Growth
Accelerating Mobile Share Gains Drive Data Growth Wireless Data Mobile data billings % of smartphones on >15% up more than 15 percent usage-based plans • 81 percent of smartphones on usage-based plans 81% • Nearly 1 million unlimited data smartphone subscribers elect to 72% 75% move to usage-based p
Slide 9: Wireless Service Margins Expand with Shift from Device Subsidy Model
Wireless Service Margins Expand with Shift from Device Subsidy Model Wireless EBITDA Margin Service EBITDA margin up 220 basis Service EBITDA margin points to 45.4 percent Total EBITDA margin Total Net Adds (in thousands) • AT&T Next impact helps offset pressure from strong sales, promotional activi
Slide 10: U-verse Transforms Wireline with Best Consumer Revenue Growth Since Launch
U-verse Transforms Wireline with Best Consumer Revenue Growth Since Launch in 2006 Wireline U-verse Revenues Consumer revenue growth ($ in billions) Consumer revenue growth $3.5 of 4.3 percent • Total U-verse revenues up 29 percent $2.7 • U-verse revenues nearly 60 percent of wireline consumer reven
Slide 11: Strategic Business Services Revenues Continue to Expand
Strategic Business Services Revenues Continue to Expand AT&T Business Services (ABS) Strategic Transformation to IP technologies Business Services* Revenues ($ in billions) drives customer gains Strategic business services $2.3 as a % of total ABS revenues • Strategic business services revenues $2.0
Slide 12: Consolidated and Wireline Margin Summary
Consolidated and Wireline Margin Summary Operating Income Margin Consolidated margins up Consolidated Wireline • Wireless margin increases with transformation away from device 19.1% 19.2% 19.3% 18.9% subsidy model • Wireless margin expansion partially 15.5% * offset by investment-related pressure Wi
Slide 13: Strong Cash Flow and Return to Shareowners
Strong Cash Flow and Return to Shareowners 1Q14 AT&T Cash Summary Best first quarter cash from ($ in billions) operations in seven years 1Q14 • EBITDA growth and strong working capital improvements drive growth Cash From Operations $8.8 • Free cash flow in line with full-year outlook, even with robu
Slide 14: Leap Wireless Acquisition Accelerates New Prepaid Initiative
Leap Wireless Acquisition Accelerates New Prepaid Initiative Transaction closed March 13, with clear value creation Realization of spectrum value Significant value from tax net-operating-loss Substantial cash interest savings from debt refinancing New Cricket brand launch in second quarter Aggressiv
Slide 15: Investments Continue in Network and Customer Experience
Investments Continue in Network and Customer Experience 2014 Outlook Update: Consolidated revenue growth of 4 percent or greater • Continuing strength in wireless and consumer revenues Stable consolidated margins including Leap operational pressure Adjusted EPS growth in mid-single digit range even
Slide 16: 1Q14 Highlights: Business Transformation Drives Strong Results
1Q14 Highlights: Business Transformation Drives Strong Results Strongest revenue Strong revenue growth — consolidated, wireless and growth in two years wireline consumer; adjusted EPS up nearly 11 percent Improving wireless Transformation of customer value proposition accelerates subscriber trends —
Slide 17: AT&T Investor Update
AT&T Investor Update April 22, 2014 © 2014 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 the property of their respective ow