AT&T Inc. · NYSE:T
AT&T — Q4 2017 Earnings Presentation
13 slides from AT&T's earnings presentation, Jan 31, 2018
Slide 1: 4th Quarter Earnings
4th Quarter Earnings AT&T Investor Update January 31, 2018 © 2018 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the p
Slide 2: Agenda
Strategic Review Randall Stephenson Agenda Chairman and Chief Executive Officer Results and Outlook John Stephens Senior Executive Vice President and Chief Financial Officer Q&A © 2018 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered
Slide 3: 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 4: A benchmark year for AT&T and the country
Turning Point in Public Policy Tax reform a substantial positive for U.S. economy Pro-investment, pro-growth regulatory moves Public policy shifts drive increased investment, jobs and wages 2017 Executing Strategic Imperatives Success with Strategic Products A benchmark FirstNet Strong wireless perf
Slide 5: Key 2018 Initiatives
Close Time Warner acquisition Building world’s premier gigabit network Launch next-generation video streaming platform Key 2018 Initiatives Create new platform for targeted advertising Grow customers and profitability in Mexico Continue to improve industry-leading cost structure 5 © 2018 AT&T Intell
Slide 6: Results and Outlook
Results and Outlook © 2018 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&
Slide 7: Financial Summary
Financial Summary $ in billions, except EPS 4Q17 Highlights 2017 Full-Year Highlights REVENUES ADJUSTED EPS CASH FROM OPS REVENUES ADJUSTED EPS CASH FROM OPS 4Q tax reform Capex 4Q tax reform Capex Adj. OI Margin Free Cash Flow Adj. OI Margin Free Cash Flow $163.8 $160.5 $3.05 $0.78 $2.84 $39.3 $39.
Slide 8: 4Q17 Operational Results
4Q17 Operational Results $ in billions AT&T Mobility 329,000 postpaid phone net adds with record-low postpaid phone churn REVENUES EBITDA MARGIN Includes 400,000 postpaid smartphone net adds and best-ever 4Q postpaid UPGRADE RATE phone churn of 0.89% $18.8 $19.2 541,000 total postpaid net adds 2.7 m
Slide 9: 4Q17 Operational Results
4Q17 Operational Results $ in billions Business Solutions Revenues up 2.0%, driven by wireless equipment and strategic services REVENUES EBITDA MARGIN Business wireline revenue up 0.8% sequentially $18.0 $18.4 Solid EBITDA of $6.2 billion Business wireline EBITDA margin of 37.8%, up 270 bps 33.6% •
Slide 10: Sound Financial Management
Sound Financial Management $ in billions Solid Foundation for the Future Strong balance sheet, further improved with tax reform Fewer long-term tax liabilities; greater cash flows Pension plan nearly fully funded; no material cash contributions expected Debt maturities extended, ample near-term liqu
Slide 11: Tax reform fuels investment, cash flow and earnings growth
Tax reform fuels investment, cash flow and earnings growth Incremental impacts expected for 2018: • Cash from operations up ~$3 billion • Capex higher by ~$1 billion 2018 • Effective tax rate approximately 23% Financial Impacts FirstNet deployment launches • Plans in place, ramping quickly; deploy m
Slide 12: 2018 Outlook
2018 Outlook Adjusted EPS in the $3.50 range • Includes estimated impacts of tax reform and new accounting standard Free cash flow of about $21 billion Capex approaching $25 billion; $23 billion net of expected FirstNet reimbursements • Includes $1 billion incremental tax reform investment Adjustmen
Slide 13: Q&A
Q&A © 2018 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary (I