At&t Inc. · NYSE:T
At&t — Q1 2010 Earnings Presentation
15 slides from At&t's earnings presentation, Apr 21, 2010
Slide 1: AT&T Investor Update 1Q10 Earnings Conference Call
AT&T Investor Update 1Q10 Q Earnings g Conference Call April 21, 2010 © 2010 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 t
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning F Forward-Looking d L ki Statements St t t Information set forth in this presentation contains financial estimates andd other th fforward-looking d l ki statements t t t th thatt are subject bj t to t risks i k and d uncertainties, and actual results might differ mater
Slide 3: 1Q10 Financial Summary
1Q10 Financial Summary AT&T EPS Consolidated revenue growth – up 0.3% to $30.6 billion $0.59 • Continued wireless strength $0.53 Impact from • Sequential growth in wireline consumer $0.17 one-time revenues; year-over-year trends noncash charge improving $0.42 • Improved business comparisons Consolid
Slide 4: AT&T 1Q10 Highlights: Solid Execution, EPS Up 11.3% Before Noncash Charge
AT&T 1Q10 Highlights: Solid Execution, EPS Up U 11.3% 11 3% Before B f Noncash N h Charge Ch Wireless Performing at a High Level • 1.9 million net adds with best-ever churn levels • 10.3% service revenue growth, 3.9% postpaid ARPU growth • Continued strong growth in integrated devices and connected
Slide 5: Consolidated Revenue Trends
Consolidated Revenue Trends AT&T Consolidated Revenues ($ in billions) 1Q10 consolidated revenues $30.6 $30.6 totaled $30.6 billion, up $78 million year over year AT&T 1Q10 revenue mix – Wireless 42% 45% 69% from wireless, wireline 100% Owned data and managed services • Combined, these areas had 7 0
Slide 6: Wireless Service Revenues Up 10.3%, Driven By Continued ARPU Growth, Solid Subscriber Gains
Wireless Service Revenues Up 10.3%, Driven By C ti Continuedd ARPU Growth, G th Solid S lid Subscriber S b ib Gains G i AT&T Wireless Subscribers 1.9 million total wireless net adds — (in millions) company’s best-ever 1Q total 87 0 87.0 Total churn 85.1 81.6 1Q10 Net Add Summary (in millions) 79.6 7
Slide 7: 29.8% Wireless Data Revenue Growth, Leadership in Mobile Broadband
29.8% Wireless Data Revenue Growth, L d Leadership hi iin M Mobile bil Broadband B db d 3G Postpaid Wireless Data Wireless data revenues up $947 million Integrated Revenues versus 1Q09, 1Q09 driven d i by b continued ti d rapid id Devices ($ in billions) adoption of smartphones and industry- (in mil
Slide 8: Wireless Network Initiatives: Further Improvement in Key Performance Metrics
Wireless Network Initiatives: Further I Improvement tI In K Key Performance P f Metrics M t i Nation’s fastest 3G network getting faster AT&T Companywide Average 3G Wireless Data Download Speeds • HSPA 7.2 7 2 performing well with 32% 32%-47% 47% increase in data download speeds where Up 14% fiber b
Slide 9: Wireless Margin Expansion
Wireless Margin Expansion AT&T Wireless OIBDA Wireless OIBDA service margin Service Margin p 380 basis p up points sequentially q y 44.5% and 200 basis points versus 1Q09 – driven by: 42.5% • Strong revenue growth 40.7% • High-quality Hi h lit subscriber b ib b base • Reduced churn • Continuing oper
Slide 10: AT&T U-verse Growth, Further Improvement in Wireline Consumer Trends
AT&T U-verse Growth, Further Improvement i Wireline in Wi li C Consumer Trends T d AT&T U-verse helped drive sequential YOY Change – Wireline Consumer Revenues growth in total consumer revenues, (1 3%) (1.3%) steady d wireline i li consumer transformation f i (3.6%) Strong unit growth • 231,000 U-ve
Slide 11: Emerging Signs of Stabilization in Business Markets
Emerging Signs of Stabilization in Business Markets YOY Change - Wireline Business Second consecutive quarter of year- Service Revenues y over-year improvement p in business revenue comparisons; strength in (3.2%) (4.8%) strategic business services (5.8%) (4.8%) • Signs of stabilization beginning to
Slide 12: Consolidated Margin Expansion
Consolidated Margin Expansion AT&T Consolidated 1Q10 margin solidly on track with Operating Income Margin 2010 full-year full year outlook, outlook reflecting operational improvements in both 19.6% wireless and wireline 18.8% • Wireline cost initiatives on track, i li wireline operating ti expenses
Slide 13: Strong Cash Flow
Strong Cash Flow AT&T Cash Summary Free cash flow and capital ($ in billions) expenditures in line with previously outlined full-year outlook Cash from Operations $7.3 • Cash from operations reflects progress on cost initiatives Capital Expenditures $3 3 $3.3 • Wireless capital expenditures up Free
Slide 14: 1Q10 Summary: Good Momentum Across Key Growth Areas, Solid Execution on Cost Initiatives
1Q10 Summary: Good Momentum Across K Key Growth G th Areas, A Solid S lid E Execution ti on Cost C t Initiatives I iti ti Continued Strong Wireless Growth – driven by mobile broadband, substantial wireless margin expansion Wireless Network Improvement – aggressive Strong start execution of wireless
Slide 15: AT&T Investor Update
AT&T Investor Update 1Q10 Q Earnings g Conference Call April 21, 2010 © 2010 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 t