AT&T Inc. · NYSE:T
AT&T — Q4 2014 Earnings Presentation
14 slides from AT&T's earnings presentation, Jan 27, 2015
Slide 1: 4th Quarter Earnings Conference Call
4th Quarter Earnings Conference Call AT&T Investor Update January 27, 2015 1 © 2015 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except u
Slide 2: Agenda
Agenda Introduction Mike Viola Senior Vice President‐Investor Relations 2014 Highlights Randall Stephenson and 2015 Outlook Chairman and Chief Executive Officer Results John Stephens Senior Executive Vice President and Chief Financial Officer Q&A 2
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: Repositioning for Growth
Repositioning for Growth • DIRECTV • Mexico • Cricket Strategic • Spectrum Investment • People, Network and Operations • 70 percent of postpaid base on Mobile Share Repositioning • 76 percent of wireline broadband base on IP the Customer Base • Best‐ever full‐year postpaid churn and adjusted EBITDA
Slide 5: Integrated Capabilities and Diversification, Positioned for Growth
Integrated Capabilities and Diversification, Positioned for Growth Revenue Mix 4Q14 4Q15e U.S. Video & Consumer Business Broadband Business (wired/ wireless) Intl. Video & Mobility Mobility Consumer Mobility Year‐end 2015, after DIRECTV and Mexico acquisitions • Diversified networks, geographies, pr
Slide 6: Financial Summary
Financial Summary Adjusted Consolidated Adjusted EPS* Revenues ($ in billions) Fourth‐quarter adjusted Consolidated $34.4 revenues of $34.4 billion, up 4.5 percent $0.55 $32.9 $0.53 • Wireless revenues up 7.7 percent • Adjusted wireline revenues positive 4.5% 3.8% 2014 adjusted consolidated revenue
Slide 7: 2014 Wireless Results: Record Performance While Repositioning Customer Base
2014 Wireless Results: Record Performance While Repositioning Customer Base with Mobile Share Value and AT&T Next Postpaid Net Adds (in thousands) 3,290 Strong subscriber growth Postpaid Churn • Best postpaid net add growth in five years, up nearly 2x year over year 1,776 1,438 • Tablets and phones
Slide 8: Strong Postpaid and Connected Device Net Adds
Strong Postpaid and Connected Device Net Adds Postpaid Net Adds Connected Devices & Total Net Adds (in thousands) (in thousands) 1,905 854,000 postpaid net adds Postpaid Churn 854 • Up 50 percent year over year 780 1,296 • 969,000 postpaid tablet net adds 566 • Smartphone base grew by 1 million 809
Slide 9: Strong Revenue Gains with Sequential Growth in Postpaid ARPU Plus Next Billings
Strong Revenue Gains with Sequential Growth in Postpaid ARPU Plus Next Billings Wireless Revenues Mobile Share Connections ($ in billions) (in millions) Accounts Total wireless revenues up 7.7 percent as Service Revenues Equipment Revenues 52.4 revenue mix shifts $19.9 • Equipment revenues up 72.3 p
Slide 10: Continued Gains in U-verse and Strategic Business Services Drive Wireline Revenue Growth
Continued Gains in U‐verse and Strategic Business Services Drive Wireline Revenue Growth Adjusted Wireline Revenues ($ in billions) Wireline EBITDA Margin Adjusted wireline revenue growth • Consumer revenue growth of 2.4 percent $14.4 $14.3 $14.5 • Business wireline revenues decline 1.8 percent 28.6
Slide 11: Margin Summary
Margin Summary Wireless EBITDA Service Margin1 EBITDA Service Margin Smartphone Gross Adds and Upgrades (M) Solid margins with record smartphone sales 37.4% 36.7% and strong AT&T Next take rate • Total wireless adjusted EBITDA service margin 29.1% down year over year but up significantly from two ye
Slide 12: Cash Flow Summary
Cash Flow Summary AT&T Cash Summary ($ in billions) 2014 cash from operations topped 4Q14 2014 $31 billion, with free cash flow of ~$10B Cash From Operations $5.7 $31.3 • $18 billion in asset sales and free cash flow • Capital spending of $21.4 billion Capital Expenditures $4.4 $21.4 • Free cash flo
Slide 13: 2015 Outlook
2015 Outlook On a standalone basis, excluding Mexico and DIRECTV, we expect: • Continued consolidated revenue growth • Adjusted EPS growth in the low‐single digit range • Expanding margins – consolidated, wireless and wireline • Improving free cash flow and dividend coverage, with capex in the $18 b
Slide 14: 4th Quarter Earnings Conference Call
4th Quarter Earnings Conference Call 14