AT&T Inc. · NYSE:T
AT&T — Q3 2015 Earnings Presentation
13 slides from AT&T's earnings presentation, Oct 22, 2015
Slide 1: 3rd Quarter Earnings Conference Call
3rd Quarter Earnings Conference Call AT&T Investor Update October 22, 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: 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 3: AT&T: Diverse, Integrated Assets Deliver Growth
AT&T: Diverse, Integrated Assets Deliver Growth Business Entertainment & Consumer International Solutions Internet Services Mobility • Mexico growth • $71B Revenue1 • $50B Revenue1 • $35B Revenue1 opportunity • 38% EBITDA Margin • 22% EBITDA Margin • 42% EBITDA Margin • Latin America optionality • 5
Slide 4: 3Q15 Financial Summary
3Q15 Financial Summary $ in billions, except EPS Consolidated Adjusted EPS Cash from Operations Adjusted EPS of $0.74, up nearly 14% Revenues Free Cash Flow Capex • Solid margin expansion with record wireless $39.1 $0.74 $10.8 service EBITDA margins $0.65 $8.7 • Focus on profitability and integrated
Slide 5: Business Solutions: Wireless and IP Drive Revenue Growth
Business Solutions: Wireless and IP Drive Revenue Growth Business Solutions Revenues ($ in billions) Wireless Wireline Revenue growth and margin expansion EBITDA Margin • Revenues up more than 1%, with wireless more $17.5 $17.7 than offsetting wireline pressure • Focus on profitable revenues and cos
Slide 6: Entertainment and Internet Services: Revenue and Margin Expansion with the Addition of DIRECTV
Entertainment and Internet Services: Revenue and Margin Expansion with the Addition of DIRECTV AEIS Reported Revenues ($ in billions) Near doubling of revenues and significant EBITDA Margin margin expansion as integration begins $10.9 2x • $50 billion revenue run rate • Scale with DIRECTV drives hig
Slide 7: AT&T Mobility: Record EBITDA Service Margins
AT&T Mobility: Record EBITDA Service Margins Total Wireless Revenues ($ in billions) Business Mobility Consumer Mobility Wireless revenues stable EBITDA Service Margin • Lower volumes due to focus on most profitable $17.5 $18.3 $18.3 customers • Customers slowing upgrade rates, extending life of sma
Slide 8: AT&T Mobility: Strong Subscriber Gains Led by Prepaid and Connected Devices
AT&T Mobility: Strong Subscriber Gains Led by Prepaid and Connected Devices Postpaid Net Adds Branded Net Adds (in thousands) (in thousands) 2.5 million total net adds Postpaid Churn Branded Churn • 289,000 postpaid net adds, with 785 755 739 622,000 tablets and computing devices 647 • Record 1.6 mi
Slide 9: International: Mexico 4G LTE Deployment on Track
International: Mexico 4G LTE Deployment on Track Mexico Wireless Market Share Financial and Operating Profile AT&T Mexico $ millions 3Q15 Early stages of investment cycle to expand 4G LTE network coverage Revenues 581 • 29 million 4G LTE POPs covered; 40 million POPs Operating Income (134) expected
Slide 10: Consolidated Adjusted Margins
Consolidated Adjusted Margins Adjusted EBITDA ($ in billions) 20.3% adjusted consolidated operating Adjusted EBITDA Margin income margin Adjusted Operating Income Margin • DIRECTV impact • Focused sales approach $13.0 • Project Agile ahead of plan o Digital First $10.7 $10.4 o Cost optimization o Si
Slide 11: Cash Flow Summary
Cash Flow Summary 3Q15 AT&T Cash Summary ($ in billions) Strong cash flow 3Q15 YTD • Laser focus on cash management • Ability to invest in growth and return Cash From Operations $10.8 $26.7 value to shareowners Capital Expenditures $5.3 $13.9 Solid balance sheet Free Cash Flow $5.5 $12.8 • $6.6 bill
Slide 12: 3Q15 Summary: Raising Guidance on Strong Financial Performance as DIRECTV Integration Begins
3Q15 Summary: Raising Guidance on Strong Financial Performance as DIRECTV Integration Begins 2015 Outlook Prior View Update EPS - Adjusted $2.62 to $2.68 $2.68 to $2.74 range Free Cash Flow $13 billion or better $15B range or better Capex $21 billion range Reaffirmed Margins Expanding Reaffirmed Rev
Slide 13: 3rd Quarter Earnings Conference Call
3rd Quarter Earnings Conference Call © 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 under written agreement.