AT&T Inc. · NYSE:T
AT&T — Q2 2015 Earnings Presentation
12 slides from AT&T's earnings presentation, Jul 23, 2015
Slide 1: 2nd Quarter Earnings Conference Call
2nd Quarter Earnings Conference Call AT&T Investor Update July 23, 2015 1
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: 2Q15 Financial Summary
2Q15 Financial Summary $ in billions, except EPS Adjusted Adjusted EPS* Cash from Operations Second-quarter adjusted EPS of $0.69, up Consolidated Free Cash Flow more than 11 percent year over year Revenues1 $9.2 • Strong wireless results and cost focus drive $32.3 $33.0 $0.69 $0.62 $8.1 double-digi
Slide 4: 2Q15 Highlights: Strong Financial Results as Transformation Drives Growth
2Q15 Highlights: Strong Financial Results as Transformation Drives Growth Strong Earnings and Free Cash Flow • Double-digit adjusted EPS and cash flow growth • Higher revenue, lower spending and Agile initiatives drive margin expansion • 55 percent free cash flow dividend payout ratio Repositioning
Slide 5: Wireless Revenues, Margins and ARPUs Grow as Successful Shift to No-Subsidy Model Continues
Wireless Revenues, Margins and ARPUs Grow as Successful Shift to No-Subsidy Model Continues Total Wireless Revenues ($ in billions) Adjusted EBITDA Service Margin Wireless revenues grow 2.1 percent as $17.9 $18.3 service revenues stabilize $17.3 • Equipment revenues up more than 14 percent as revenu
Slide 6: Mobile Share Value and AT&T Next Reposition Smartphone Customer Base
Mobile Share Value and AT&T Next Reposition Smartphone Customer Base Postpaid Smartphone Base No-subsidy plans Subsidy plans Repositioning to Mobile Share Value plans is nearing completion • Nearly two-thirds off device subsidy plans 62% 64% • 96 percent of postpaid base on Mobile Share, 58% 51% Fam
Slide 7: Wireless: The Internet of Things Drives Strong Subscriber Growth
Wireless: The Internet of Things Drives Strong Subscriber Growth Postpaid Net Adds Branded Net Adds (in thousands) (in thousands) Postpaid Churn Branded Churn 2.1 million total net adds, driven by tablets and connected cars 1,026 • 410,000 postpaid net adds, with about 740 741 600,000 tablets and co
Slide 8: Wireline: Continued Focus on Profitability and IP Services
Wireline: Continued Focus on Profitability and IP Services Adjusted Wireline Revenues ($ in billions) Wireline EBITDA Margin Continued focus on profitability • Wireline margins stable, including pressure $14.4 $14.1 $14.2 from storms • Cost and efficiency initiatives 26.9% 27.5% 27.1% • Cycle time i
Slide 9: Consolidated Margins
Consolidated Margins Adjusted EBITDA Margin Adj. EBITDA ($ in billions) Adjusted consolidated EBITDA margin Adjusted Operating Income Margin expands to 33.6 percent • Strong wireless margins 33.3% 33.6% 31.5% • Stabilizing wireline margins 210 bps • Lower expenses from capex efficiencies • Cost init
Slide 10: Strong Cash Flows and Return to Shareowners
Strong Cash Flows and Return to Shareowners 2Q15 AT&T Cash Summary ($ in billions) Strong cash from operations 2Q15 YTD • Strongest cash flow in seven quarters • Ability to invest and return value to Cash From Operations $9.2 $15.9 shareowners Capital Expenditures $4.7 $8.7 Maintained solid balance
Slide 11: 2Q15 Summary: Strategy Drives Solid Performance as Company Repositions for Growth
2Q15 Summary: Strategy Drives Solid Performance as Company Repositions for Growth Strong adjusted earnings, revenue and margin growth • Double-digit adjusted EPS growth, best-ever adjusted EBITDA wireless service margins Solid cash flows and balance sheet • Double-digit free cash flow growth, improv
Slide 12: 2nd Quarter Earnings Conference Call
2nd Quarter Earnings Conference Call