At&t Inc. · NYSE:T
At&t — Q3 2012 Earnings Presentation
19 slides from At&t's earnings presentation, Oct 24, 2012
Slide 1: AT&T Investor Update 3Q12 Earnings Conference Call
AT&T Investor Update 3Q12 Earnings Conference Call October 24, 2012 © 2012 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 the
Slide 2: Agenda
Agenda Introduction Susan Johnson Senior Vice President-Investor Relations Consolidated and John Stephens Wireline Results Senior Executive Vice President and Chief Financial Officer Wireless Results Ralph de la Vega President and Chief Executive Officer, AT&T Mobility Q and 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: 3Q12 Financial Summary
3Q12 Financial Summary AT&T Diluted EPS $0.63 EPS — EPS up more than Free Cash Flow (in billions) 5 percent year over year excluding $0.63 Ad Solutions $0.61 Consolidated revenues, excluding Ad Solutions, up 2.6 percent year over year $6.5 Record cash flow $5.1 • $11.5 billion cash from operating ac
Slide 5: 3Q12 Highlights: Strong Growth in Broadband, Both Wireless and Wireline Data
3Q12 Highlights: Strong Growth in Broadband, Both Wireless and Wireline Data Solid Growth, Record Cash Flow • 2.6 percent consolidated revenue growth excluding Ad Solutions Strong execution • Best-ever free cash flow across key growth • Proposed long-term pension funding solution areas including Dat
Slide 6: Consolidated Revenue Trends
Consolidated Revenue Trends AT&T Consolidated Revenues (excluding Advertising Solutions — $ in billions) 3Q revenues of $31.5 billion, up 2.6 percent year over year, $31.5 excluding Ad Solutions $30.7 • Strong wireless service revenue growth Growth Wireless 51% 53% drivers • IP data and video growth
Slide 7: Mobile Internet Drives Revenue Growth
Mobile Internet Drives Revenue Growth Introduced Mobile Share data plans • Sales off to strong start • More customers are choosing the larger data plans • Customers choose usage-based plan that best fits their needs LTE build ahead of schedule • Seeing great throughput speeds • Talk and surf advanta
Slide 8: Largest 4G Network with LTE Speeds Exceeding Expectations
Largest 4G Network with LTE Speeds Exceeding Expectations AT&T Average Android Download Speed LTE deployment ahead of schedule, (includes 3G and 4G devices) reaching more than 135 million POPs • AT&T LTE download speeds range from 5 to 12 Mbps, with significantly higher Mbps Up more than 50% since b
Slide 9: New Devices Added to Strong Product Portfolio
New Devices Added to Strong Product Portfolio Samsung Galaxy Camera ASUS Vivo Tablet Samsung Smart PC Novatel MiFi ® Liberate HTC ONE X Nokia Lumia 920 LG Optimus G Amazon Kindle Fire … Great new devices and strong seasonal sales 9 setting us up for a terrific fourth quarter …
Slide 10: Mobile Internet Drives Wireless Revenue Growth
Mobile Internet Drives Wireless Revenue Growth Service revenues up 4.5 percent, Service Revenues Postpaid ARPU ($ in billions) best in five quarters Postpaid Data ARPU Data Revenues • Data revenue growth of 18.3 percent $14.9 $65.20 $14.3 $63.69 Strong ARPU performance 4.5%, 2.4% • 2.4 percent postp
Slide 11: Data Revenues Continue Strong Growth Trends
Data Revenues Continue Strong Growth Trends Postpaid Usage-Based Data revenues up 18.3 percent Smartphone Plans Devices (in millions) Smartphone growth continues (in millions) % of Postpaid Base Tiered Data • 6.1 million smartphone sales Mobile Share 44.5 • Record sales for Android and Windows smart
Slide 12: Continued Subscriber Growth in Every Category
Continued Subscriber Growth in Every Category Postpaid churn posts year-over-year gains Total Subscribers Postpaid Subscribers • Smartphone churn remains below (in millions) (in millions) 1 percent even with new product launch Postpaid Churn • Almost 90 percent of smartphones 105.9 are on family or
Slide 13: Strong Wireless Service EBITDA Margins with Strong Smartphone Sales
Strong Wireless Service EBITDA Margins with Strong Smartphone Sales Wireless EBITDA Service Margin Postpaid Smartphone Sales (in millions) Wireless EBITDA service margin of 40.8 percent 43.7% • Strong smartphone sales 40.8% • Higher postpaid ARPU and 37.6% data growth • Total postpaid upgrades of 7
Slide 14: U-verse Drives Continued Wireline Consumer Revenue Growth
U-verse Drives Continued Wireline Consumer Revenue Growth Wireline U-verse Revenues 38 percent year-over-year growth in ($ in billions) U-verse revenues: Consumer Revenue Growth $2.4 • 7.4 million total subscribers $1.7 • Nearly 200k U-verse TV net adds to $1.1 2.0% reach 4.3 million • Total U-verse
Slide 15: Customers Continue to Invest in Efficiencies Even with Challenging Economy
Customers Continue to Invest in Efficiencies Even with Challenging Economy Strategic Business Services Revenues ($ in millions) $1,594 $1,431 Strategic business services revenue $1,203 growth at 11.4 percent 11.4% Declines in legacy voice and data partially offset by growth in 3Q10 3Q11 3Q12 strateg
Slide 16: Consolidated Margin Summary
Consolidated Margin Summary Operating Income Margin YTD Consolidated Consolidated Stable consolidated margin even with Wireline strong smartphone sales 20.0% 19.3% 18.8% Wireline operating income margin 19.8% • Improving revenue trends in 17.2% 19.2% consumer • Solid cost management 13.3% 12.4% 12.9
Slide 17: Record Cash Flow
Record Cash Flow AT&T Cash Flow Best-ever operating and free cash flow, ($ in billions) year to date and for the quarter Cash From Operating Free Cash Flow • Higher year-to-date wireless spending Activities Capex • Net-debt-to-EBITDA ratio at 1.42 $28.9 $27.2 Debt reductions Up 6.6% • Total debt red
Slide 18: 3Q12 Summary: Solid Performance, On Track to Meet or Exceed Full-Year Guidance
3Q12 Summary: Solid Performance, On Track to Meet or Exceed Full-Year Guidance 2012 Expectations Consolidated revenue, margin and EPS growth Wireless service EBITDA margins expanding, postpaid ARPU growth ~2 percent Wireline margins stable, stable consumer revenue; U-verse gains Free cash flow is no
Slide 19: AT&T Investor Update 3Q12 Earnings Conference Call
AT&T Investor Update 3Q12 Earnings Conference Call October 24, 2012 © 2012 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 the