AT&T Inc. · NYSE:T
AT&T — Q1 2011 Earnings Presentation
17 slides from AT&T's earnings presentation, Apr 20, 2011
Slide 1: AT&T Investor Update 1Q11 Earnings Conference Call
AT&T Investor Update 1Q11 Q Earnings g Conference Call April 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 t
Slide 2: Agenda
Agenda Introduction Brooks McCorcle Senior Vice President-Investor Relations Highlights Rick Lindner Senior Executive Vice President and Chief Financial Officer Wireless & Consumer Ralph de la Vega President and Chief Executive Officer, Officer AT&T Mobility and Consumer Markets Business & Consolida
Slide 3: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Lookingg 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 fut
Slide 4: 1Q11 Financial Summary
1Q11 Financial Summary AT&T Diluted Solid quarter, continued revenue growth, Adjusted EPS results in line with full-year outlook: $0 58 $0.58 $0 57 $0.57 $0.57 EPS – stable year over year on an adjusted basis; up year over year on a reported basis • Includes 2 cents of pressure from Alltel $0.41 mer
Slide 5: AT&T 1Q11 Highlights: Solid Execution Leads to Strong Sales and Revenue Growth
AT&T 1Q11 Highlights: Solid Execution Leads to Strong g Sales and Revenue Growth Solid Revenue Growth • Consolidated revenues up 2.3% 2 3% • 10.2% wireless revenue growth, 2.4% postpaid ARPU growth • Wireline consumer revenues increased for third quarter in a row Strong Mobile Broadband Performance
Slide 6: Consolidated Revenue Continues to Grow
Consolidated Revenue Continues to Grow AT&T Consolidated Revenue Revenue of $31.2 billion, ($ in billions) up p$$717 million,, or 2.3%,, $31.2 year over year. Key drivers: $30.5 • Strong wireless growth • Continued solid U-verse Revenues gains i Wireless 46% 49% up 9.1% year over • Stable business t
Slide 7: Robust Mobile Broadband Growth, Strong Overall Wireless Metrics
Robust Mobile Broadband Growth, Strong g Overall Wireless Metrics Double-digit revenue growth Best-ever first-quarter net adds Best-ever first-quarter smartphone sales Best-ever first-quarter gain in connected devices Branded computing subscribers on network doubled over past year, led by
Slide 8: Wireless Revenue Up 10.2%, Driven by Mobile Broadband
Wireless Revenue Up 10.2%, Driven by Mobile Broadband Service Revenue Postpaid ARPU ($ iin billions) billi ) 2.4% growth in postpaid subscriber ARPU — almost 3% $14.0 excluding merger impact $12.9 $63 39 $63.39 • Ninth consecutive quarter with a year-over-year increase $61.89 • Adding data-rich cust
Slide 9: Strong Subscriber Gains with Positive Postpaid Net Adds and Stable Churn
Strong Subscriber Gains with Positive Postpaid p Net Adds and Stable Churn Total Churn Total Subscribers 2.0 million total wireless net adds — Merger Churn (in millions) to reach 97.5 million; gains in every category 1.36% 97.5 1.30% 1Q11 Net Add Summary (in thousands) 87.0 ~1.30% ~1.28% Postpaid 62
Slide 10: Continued Strong Wireless Data Growth of 23.9%
Continued Strong Wireless Data Growth of 23.9% Wireless data represents over a third Postpaid Wireless Data of total wireless revenues, growing Smartphone Revenues and led by strong smartphone sales Devices ($ in billions)) (in millions) Postpaid Data ARPU • 5.5 million smartphones sales, % of Postp
Slide 11: Wireless Margins Expand Sequentially Even With Strong Smartphone Sales
Wireless Margins Expand Sequentially Even With Strong g Smartphone p Sales Adjusted Wireless EBITDA Service Margin Merger EBITDA Service Margin Postpaid Smartphone Sales (in millions) Wireless EBITDA service margin of 39.0%, without merger costs 44.6% margins would have been 40.5% 40.5% • Third-best
Slide 12: U-verse Drives Third Consecutive Quarter of Wireline Consumer Growth
U-verse Drives Third Consecutive Quarter of Wireline Consumer Growth Wireline consumer revenue growth up Wireline U-verse Revenues ($ in billions) 0.5% year over year $1.5 U-verse U verse Penetration $1.3 U-verse transforming wireline $1.1 consumer $1.0 15.3% • 218,000 U-verse TV net adds to reach $
Slide 13: Strongest Strategic Business Services Growth in More Than Two Years
Strongest Strategic Business Services Growth in More Than Two Years 1Q11 Wireline Business Revenue Mix Wireline business revenue trends remain stable Data/Other 59% 61% 1Q11 service revenue decline of 4.4% — excluding the Japan assets sold in 3Q10, the decline was 3.6% Voice 41% 39% AT&T Business So
Slide 14: Consolidated Margin Summary
Consolidated Margin Summary Consolidated Adjusted Stable consolidated margin Operating Income Margin • Growth in wireless and consumer wireline revenues 19.6% 18.6% • Operational improvements in 17.7% network and support functions • Total force down by 5,900 Wireline operating income margin — driven
Slide 15: Strong Cash Flow
Strong Cash Flow Free cash flow in line with 1Q11 AT&T Cash Summary ($ iin billions) billi ) previously outlined full full-year year outlook Cash From Operations $7.7 • Strong cash from operations due to revenue growth and Capital Expenditures $4.2 cost initiatives Free Cash Flow $3.6 • Wireless cap
Slide 16: 1Q11 Summary: Solid Start to Year
1Q11 Summary: Solid Start to Year Increasing Revenue Growth — consolidated, wireless and d wireline l consumer Grew revenues Mobile Broadband Strength — record net adds, growing postpaid ARPU, stable churn and another Record wireless record smartphone sales quarter quarter AT&T U-verse Leading Wirel
Slide 17: AT&T Investor Update 1Q11 Earnings Conference Call
AT&T Investor Update 1Q11 Q Earnings g Conference Call April 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 t