At&t Inc. · NYSE:T
At&t — Q4 2011 Earnings Presentation
18 slides from At&t's earnings presentation, Jan 26, 2012
Slide 1: AT&T Investor Update
AT&T Investor Update 4Q11 Earnings Conference Call January 26, 2012 © 2012 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
Slide 2: Agenda
Agenda Introduction Brooks McCorcle Senior Vice President-Investor Relations Accomplishments Randall Stephenson and Outlook Chairman and Chief Executive Officer Results John Stephens Senior Executive Vice President and Chief Financial Officer Q and A 2
Slide 3: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking 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 y A discussion of factors that may mater
Slide 4: 2011 Highlights
2011 Highlights Revenue growth – 76% of revenues from wireless, wireline data and managed services – up 7.5% • Strong execution Industry-leading mobile subscriber growth – #1 in smartphones, tablets, postpaid ARPU • Robust cash generation Network performance accomplishments – • Solid operational 3G
Slide 5: Operational Outlook, Strategic Focus
Operational Outlook, Strategic Focus 2012 Expectations • Consolidated revenue, revenue margin and EPS growth • Conservative, • Strong mobile broadband, subscriber and postpaid confident ARPU growth outlook • Return to revenue growth in wireline business • Assumed little • U-verse gains lift from • C
Slide 6: 2011 Financial Summary
2011 Financial Summary Revenues Adjusted EPS ($ in billions) Smartphone sales $126.7 Year-over-year revenue up 2.0% $2.29 $2.20 $124.3 • 3.6% for the fourth q quarter 2.0% 25.3M Record-breaking smartphone sales growth • Drive margins and EPS 19.3M St Strong reported t d ffree cash h fl flow 2010 201
Slide 7: Growth Engines Transforming Revenue Mix
Growth Engines Transforming Revenue Mix AT&T 2011 Consolidated 4Q revenues of $32.5 billion, Revenues up 2.0% up 3.6% year over year ($ in billions) $126.7 • Strong wireless, wireless IP data and $124.3 video growth • Improved wireline business trends 50% Revenues e e ues Wireless 47% up $6.7B, • Of
Slide 8: Best Postpaid Growth in Five Quarters Drives Double-Digit Wireless Revenue Growth
Best Postpaid Growth in Five Quarters Drives Double-Digit Double Digit Wireless Revenue Growth Wireless Wireless Total wireless revenues up 10.0% for Service Revenues Total Subscribers 4Q11 — 8.1% for full year ($ in billions) (in millions) $56.7 103.2 2.5 million total wireless net adds in $53.5 95
Slide 9: Best-Ever Quarter for Mobile Broadband Sales
Best-Ever Quarter for Mobile Broadband Sales Wireless Data Revenues ($ in billions) $22.0 Wireless data revenue of $22 billion up 21% for the year $18.2 9.4 million smartphone p sales shatter $14.1 Up 21% record and continue to accelerate YOY smartphone penetration • 50+ percent more than previous r
Slide 10: 2011 Wireless Network Momentum
2011 Wireless Network Momentum Data Traffic on Enhanced Backhaul AT&T is committed to creating the world’s Exceeded target, most advanced and open network 90% ended 2011 at 80% Only U.S. carrier providing 4G speeds 70% through both LTE and HSPA+ technologies 50% In 2011: 30% • Launched LTE with 74 m
Slide 11: Record Smartphone Sales Impact Wireless Margins
Record Smartphone Sales Impact Wireless Margins Wireless EBITDA Service Margin 4Q11 Wireless EBITDA service Postpaid Smartphone Penetration margin of 28.7% • Smartphone sales 2X last quarter 40.9% 40.7% • Record postpaid upgrades of 11.9% 38.1% • Higher ARPU, lower churn, strong data growth and high
Slide 12: U-verse Leads Consumer Revenue Growth
U-verse Leads Consumer Revenue Growth Wireline U-verse Revenues 4Q U-verse revenues up 44% year ($ in billions) $6.7 over year, 9 percent sequentially U-verse U verse Penetration • 208 208,000 000 U-verse U verse TV net adds to 15.9 % reach 3.8 million, strong attach rates $4.3 14.2% U-verse broadba
Slide 13: Positive Wireline Business Trends — Second Straight Quarter of Sequential Growth
Positive Wireline Business Trends — Second Straight Quarter of Sequential Growth 4Q11 AT&T Wireline Business Positive trends in every category Revenue Growth despite economic pressures Sequential Year over Year 0 1% 0.1% Robust strategic services revenue 0% growth at 18.4% -1.4% -2% ● VPNs ● Etherne
Slide 14: Consolidated Margin Summary
Consolidated Margin Summary Adjusted Operating Income Margin Consolidated Adjusted Consolidated margin Wireline remains relatively stable even Smartphone Sales (millions) with record smartphone sales 18.5% 17.8% Wireline operating income i stable margin t bl due d to: t 12.8% • Improving revenue tre
Slide 15: Outstanding Cash Flow
Outstanding Cash Flow Strong cash from operations: 2011 AT&T Cash Summary ($ in billions) • Driven by revenue growth, cost initiatives improved working initiatives, capital and cash management Cash From Operations $34.6 • Wireless capital expenditures Capital Expenditures $20.3 ~$10 billion Free Cas
Slide 16: 2011 Summary
2011 Summary Financial strength — revenue growth with strong free cash flow and solid balance sheet Leader in mobile broadband — 25 million smartphone sales with industry leading penetration, 2 million+ net gain in branded computing devices Creating world’s most advanced network — best-in-class mobi
Slide 17: 2012 Outlook — Focus on Growth
2012 Outlook — Focus on Growth Continued revenue growth — consolidated revenues continue to grow Consolidated operating margin expansion — growth in wireless while stabilizing wireline operating margins Mid i l digit Mid-single di i EPS growth h or better b Strong free cash flow — higher than 2011 l
Slide 18: AT&T Investor Update
AT&T Investor Update 4Q11 Earnings Conference Call January 26, 2012 © 2012 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