AT&T Inc. · NYSE:T
AT&T — Q1 2017 Earnings Presentation
13 slides from AT&T's earnings presentation, Apr 25, 2017
Slide 1: 1st Quarter Earnings
1st Quarter Earnings AT&T Investor Update April 25, 2017 1 © 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the p
Slide 2: Agenda
Results John Stephens Agenda Senior Executive Vice President and Chief Financial Officer Business Strategy Update Randall Stephenson Chairman and Chief Executive Officer Q&A © 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered tra
Slide 3: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements Information set forth in this communication, including financial estimates and statements as to the expected timing, completion and effects of the proposed merger between AT&T Inc. and Straight Path Communications, Inc., constitute forward-lo
Slide 4: Additional Information and Where to Find It
Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger between
Slide 5: 1Q17 Financial Summary
1Q17 Financial Summary $ in billions, except EPS Revenues Adjusted EPS Cash from Ops Adj. OI Margin Capex $39.4 billion in consolidated revenue Free Cash Flow • Equipment and legacy wireline $40.5 $39.4 $0.72 $0.74 $9.2 sales impact revenues $7.9 • Growth in IP and video services $4.7 $6.0 Adjusted
Slide 6: 1Q17 Operational Results
1Q17 Operational Results $ in billions AT&T Mobility Record EBITDA margin of 41.8% Revenues EBITDA Margin • 49.3% wireless service margins • Equipment revenue down $0.5 billion due to record-low upgrade rate and strong BYOD $18.0 $17.2 Best-ever 1Q postpaid phone churn of 0.90%, 6 basis points year-
Slide 7: 1Q17 Operational Results
1Q17 Operational Results $ in billions Business Solutions Legacy services and wireless equipment pressure revenues Revenues EBITDA Margin • Continued focus on wireless and strategic services $17.6 $16.8 Solid margin gains – up 90 bps – with EBITDA of $6.7 billion • Strong wireless margins and gains
Slide 8: 2017 Outlook Update
2017 Outlook Update FirstNet to have minimal Guidance unchanged for: impact on 2017 • Adjusted EPS growth in the mid-single digit range • Adjusted Operating margin expansion • Capital expenditures in the $22 billion range • Free cash flow in the $18 billion range Adjustments include non-cash mark-to
Slide 9: Business Strategy Update
Business Strategy Update © 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners
Slide 10: The Foundation for the Future
The Foundation for the Future 400+ million Largest fiber Software LTE POPs footprint1 defined & Video-centric • 12.5M customer virtualized Network Leading satellite locations by 2019 distribution • 5.9M business locations passed today Leading 60+ MHz of 5G path/evolving Ongoing deployable technologi
Slide 11: Broad and Deep Spectrum Position
Broad and Deep Spectrum Position > 60 MHz of deployable spectrum • 20 MHz of AWS-3 > 60 MHz • 20 MHz WCS of deployable spectrum • 20 MHz FirstNet • Continuous spectrum refarming Avg. MHz of Low and Mid-band FirstNet win enables network evolution Spectrum in Top 100 Markets • Simultaneous deployment
Slide 12: Public Policy/Washington Update
Public Policy/Washington Update Industry General TWX Regulatory Regulatory Tax Reform Merger Review Environment Environment EU approval Business Data Lighter touch Congress Services regulation and considering pro-growth measures to DOJ review Set-Top Box initiatives encourage underway; investment co
Slide 13: Q&A
Q&A 1 © 2017 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. AT&T Proprietary