AT&T Inc. · NYSE:T
AT&T — Q3 2011 Earnings Presentation
17 slides from AT&T's earnings presentation, Oct 20, 2011
Slide 1: AT&T Investor Update 3Q11 Earnings Conference Call
AT&T Investor Update 3Q11 Q Earnings g Conference Call October 20, 2011 © 2011 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
Slide 2: Agenda
Agenda Introduction Brooks McCorcle Senior Vice President-Investor Relations Consolidated and John Stephens Wireline Results Senior Executive Vice President and Chief Financial Officer Wireless Results Ralph de la Vega President and Chief Executive Officer, AT&T Mobility and Consumer Markets Q and A
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: 3Q11 Financial Summary
3Q11 Financial Summary AT&T Diluted Adjusted EPS 3Q earnings per share up 13% Consolidated Operating Margin and EPS up 3.5% year to date, $0.61 excluding significant items $0.60 $0.54 $0.61 EPS — double-digit year-over- year growth • Includes pressure from storms 19 6% 19.6% 19 8% 19.8% and d deal-r
Slide 5: 3Q11 Highlights: Growth in Wireless, Improving Wireline Revenue Trends, Strong Free Cash Flow
3Q11 Highlights: Growth in Wireless, Improving Wireline Revenue Trends, Strong Free Cash Flow Continued Strength in Mobile Broadband • Customer C t additions dditi iin all ll categories t i with ith strong t smartphone t h sales l Strong execution • Tablets and tethering plans lead branded computing
Slide 6: Consolidated Revenue Trends
Consolidated Revenue Trends AT&T Year-to-Date Consolidated Revenues up 1.4% 3Q revenues of $31.5 billion, ($ in billions) down ((0.3%))yyear over y year;; $94 2 $94.2 $92.9 service revenues up 0.4% • Strong wireless, IP data and video growth Revenues • Improved business wireline Wireless 47% 49% up
Slide 7: Mobile Broadband Drives Dynamic Growth in 2011
Mobile Broadband Drives Dynamic Growth in 2011 Strong mobile broadband leads to expanded margins and postpaid ARPU growth • 4.8 million smartphone sales in 3Q, almost half non-iPhone • 16 million smartphones, 9 million+ iPhones sold this year • 505,000 branded computing device sales in 3Q to reach 4
Slide 8: Total Subscribers Pass 100 Million With Solid Growth in Every Customer Category
Total Subscribers Pass 100 Million With Solid Growth in Every Customer Category Total Subscribers Postpaid Subscribers 2.1 million total wireless net adds — (in millions) (in millions) to reach 100.7 million; solid growth in every category 100.7 92.8 68.6 67.7 Net Add Summary (in thousands) 3Q YTD P
Slide 9: Growth in Industry-Leading Postpaid ARPU Drives Wireless Revenue
Growth in Industry-Leading Postpaid ARPU Drives Wireless Revenue Service Revenues Postpaid ARPU Service revenues up 4.3% ($ iin billions) billi ) 11th consecutive year-over-year $14.3 increase in postpaid ARPU $13.7 $63.69 • Adding data-rich customers $62.84 $ • Continued smartphone and branded comp
Slide 10: Mobile Broadband Devices Drive Strong Data Growth
Mobile Broadband Devices Drive Strong Data Growth Wireless Data Revenues Smartphone growth continues ($ in billions) Postpaid Data ARPU $5.6 • 4.8 million smartphone sales $4.8 $25.14 • Almost 2/3rds of postpaid sales $3.6 $22.02 $18.43 • Nearly half of smartphone sales are Data ARPU BlackBerry, And
Slide 11: Wireless Service Margins Expand
Wireless Service Margins Expand Wireless EBITDA Service Margin Postpaid Smartphone Sales (in millions) Wireless EBITDA service margin off 43.7% 43 7% 43.1% 43.7% • Strong smartphone sales in quarter before iPhone refresh 41.1% 39 0% 39.0% • Higher postpaid ARPU and 37.6% 37.6% data growth • Total po
Slide 12: Consumer IP Data Growing 19.6%, Exceeds Half of Consumer Revenue
Consumer IP Data Growing 19.6%, Exceeds Half of Consumer Revenue Wireline U-verse Revenues In Oct. 2011, AT&T U-verse TV ($ in billions) ranked “Highest in Customer $1.7 U-verse U verse Penetration Satisfaction in the North Central,, South and West Regions” $1.1 15.7 % U-verse revenues, with 50% yea
Slide 13: Business Solutions Sees First Sequential Revenue Growth in Three Years
Business Solutions Sees First Sequential Revenue Growth in Three Years 3Q11 AT&T Wireline Business Service Revenue Growth Sequential 0.5% Continued robust strategic business Year over Year services revenue growth at 19.3% 0% -1.7% Global Enterprise Solutions — -2% IP data, outsourcing and integratio
Slide 14: Consolidated Margin Summary
Consolidated Margin Summary Operating Income Margin Consolidated Wireline Improving consolidated margin both sequential and year over year 19.6% 19.8% • Wireless revenues continue to 17.2% grow • Progress with cost initiatives Wireline operating income margin 13.0% 13.1% 12 1% 12.1% • IImproving i r
Slide 15: Free Cash Flow Hits Two-Year High
Free Cash Flow Hits Two-Year High AT&T Cash Flow ($ in billions) Cash From Free Cash Flow Free cash flow in line with full full-year year Operating outlook, up 6.9% Activities • 3Q YTD wireless capital expenditures $27.2 up $1.0 billion year over year $25.4 • Net debt-to-EBITDA ratio at 1.41 $12.4 U
Slide 16: 3Q11 Summary: Solid Quarter, Positive Trends Heading into End of the Year
3Q11 Summary: Solid Quarter, Positive Trends Heading into End of the Year Great focus and execution across the business: wireless, U-verse, strategic business services Terrific wireless and mobile broadband momentum: passing 100 million subscribers, gains in every customer category, strong service m
Slide 17: AT&T Investor Update
AT&T Investor Update 3Q11 Q Earnings g Conference Call October 20, 2011 © 2011 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