AT&T Inc. · NYSE:T
AT&T — Q4 2010 Earnings Presentation
16 slides from AT&T's earnings presentation, Jan 27, 2011
Slide 1: AT&T Investor Update 4Q10 Earnings Conference Call
AT&T Investor Update 4Q10 Q Earnings g Conference Call January 27, 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
Slide 2: Agenda
Agenda Introduction Brooks McCorcle Senior Vice President-Investor Relations Accomplishments Randall Stephenson and Outlook Chairman and Chief Executive Officer Results Rick Lindner Senior Executive Vice President and Chief Financial Officer 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 futur
Slide 4: AT&T Profile: Growth Leader, Strong Record, Positive Outlook
AT&T Profile: Growth Leader, Strong Record, Positive Outlook Productive 2010 • Grew revenues,, margins g and earnings; g ; strong g cash flow • Scaling U-verse, premier VPN platform, strategic business services • Delivered consistent cost improvement Mobile Broadband Leader • Best 4Q and full-year w
Slide 5: 2010 Financial Summary
2010 Financial Summary Adjusted Operating Revenues Income Margin Adjusted EPS $124.3 2010 adjusted earnings per 18.5% $122.5 $2.29 17.7% $2.07 share up 10.6%, and up 10.0% for the quarter EPS up 10.6% Consolidated revenue returned to growth in 2010, with a 1.4% increase, and 2009 2010 2009 2010 2009
Slide 6: Consolidated Revenue Continues to Grow
Consolidated Revenue Continues to Grow AT&T Consolidated Revenue Revenue of $31.4 billion, up ($ in billions) $653 million, or 2.1%, year $31 4 $31.4 over year. K Key drivers: d i $30.9 $30.7 • Strong wireless growth • Solid U-verse gains with Wireless 42% Revenues wireline consumer revenue 45% 48%
Slide 7: Wireless Revenue Up 9.9% — Driven by Record Subscriber Gains, Postpaid ARPU Growth
Wireless Revenue Up 9.9% — Driven by Record Subscriber Gains, Postpaid ARPU Growth Service Revenue Postpaid ARPU ($ in billions) 2.2% growth in postpaid subscriber $13.8 ARPU — eighth consecutive quarter $12 6 $12.6 $62 88 $62.88 with a year year-over-year over year increase $61.53 Record fourth-qua
Slide 8: 27.4% Wireless Data Revenue Growth
27.4% Wireless Data Revenue Growth Wireless data ~$20 billion annualized revenue stream 3G Postpaid Wireless Data Integrated g Devices Revenues (in millions) ($ in billions) Continued strong integrated Postpaid Data ARPU device growth $4.9 • Over 7.4 million integrated device 36.9 sales, with increa
Slide 9: Wireless Margins
Wireless Margins AT&T Wireless OIBDA Service Margin Postpaid Integrated Device Sales (in millions) 44.5% Full-year 2010 wireless OIBDA 43.1% 40.7% service i margin i off 40.7% 40 7% 37.6% 37.6% 37.6% wireless OIBDA service 8.1 margin for 4Q10 7.4 6.5 • Near record-level smartphone 5.7 sales and upgr
Slide 10: U-verse Drives Wireline Consumer Growth
U-verse Drives Wireline Consumer Growth YOY Change — Wireline Consumer Revenues U-verse transforming wireline consumer 0.7% 0 2% 0.2% • 246 246,000 000 U-verse TV net adds to (1.3%) reach nearly 3 million, continued 0.0% strong attach rates • $5 billion annualized revenue stream (3.6%) • Growing ARP
Slide 11: Strategic Business Services Lead Wireline Business
Strategic Business Services Lead Wireline Business Business Revenue Growth 2009 2010 2010 year-over-year wireline business revenue trends p Global Enterprise Solutions ((7.7%)) ((4.8%)) continue ti to t improve i Small Business (5.9%) (5.2%) 4Q service revenue decline Wholesale & GEM (5.3%) (4.1%) o
Slide 12: Consolidated Margin Summary
Consolidated Margin Summary Adjusted Consolidated Operating Income Margin Consolidated margin improving 18.5% • C Continued ti d progress iin wireless i l revenue growth and churn 17.7% • Operational improvements in network and support functions • Total force down by 16,000 in 2010 Stable wireline o
Slide 13: Strong Cash Flow
Strong Cash Flow 2010 AT&T Cash Summary Free cash flow in line with ($ in billions) previously i l outlined tli d full-year f ll outlook tl k Cash From Operations $35.0 • Cash from operations strong due to revenue growth and cost initiatives Capital Expenditures* $20.3 • Wireless capital expenditure
Slide 14: 2010 Summary
2010 Summary Grew revenues, Financial Strength — growth in revenues and margins, strong free f cash h flow fl margins, earnings Strong Earnings Growth — 10.0 percent increase Strongg wireless in 4Q, 10.6 percent increase in 2010 subscriber gains; Leader in Mobile Broadband — record net adds scaling
Slide 15: 2011 Outlook — Focus on Growth
2011 Outlook — Focus on Growth Grow revenues, Continued Revenue Growth — consolidated, margins, earnings wireless and consumer wireline and cash flow Consolidated Operating Margin Expansion — growth in both wireless and wireline operating margins Invest in and Mid-Single Digit EPS Growth or Better —
Slide 16: AT&T Investor Update
AT&T Investor Update 4Q10 Q Earnings g Conference Call January 27, 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