At&t Inc. · NYSE:T
At&t — Q2 2012 Earnings Presentation
15 slides from At&t's earnings presentation, Jul 24, 2012
Slide 1: AT&T Investor Update 2Q12 Earnings Conference Call
AT&T Investor Update 2Q12 Q Earnings g Conference Call July 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 th
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking 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 y A discussion of factors that may mater
Slide 3: 2Q12 Financial Summary
2Q12 Financial Summary AT&T Diluted EPS Consolidated Revenues* (in billions) $0.66 reported EPS – Up 10 percent year-over-year and sequentially $0.66 $ Revenues up 2.0 percent excluding $0.60 $0.60 Advertising Solutions $31.3 Expanding E di consolidated lid t d margini – $31.1 both sequentially and
Slide 4: AT&T 2Q12 Highlights: Strong Performance Drives Revenue and Earnings Growth
AT&T 2Q12 Highlights: Strong Performance Drives Revenue and Earnings Growth Wireless Performance Drives Strong Growth • Record EBITDA service margin g of 45.0 percent even with steady smartphone sales • Solid subscriber gains with 320,000 postpaid net adds • Best-ever postpaid, prepaid and total chu
Slide 5: 2 Percent Consolidated Revenue Growth Excluding Sale of Advertising Solutions
2 Percent Consolidated Revenue Growth Excluding Sale of Advertising Solutions AT&T Consolidated Revenues (excluding Advertising Solutions — $ in billions) Revenues, excluding $30.7 $31 3 $31.3 Ad Solutions, S l i $31.3 $31 3 billion, billi up $616 million year over year. Key drivers: Growth • Strong
Slide 6: Mobile Internet Strategy on Target
Mobile Internet Strategy on Target Record margins Service Revenues Postpaid ARPU • 45 percent EBITDA service margin ($ in billions) Postpaid Data ARPU Data Revenues Best-ever churn $64.93 $14.8 • Postpaid, prepaid and total $14.2 $63.87 4.3%,, 1.7% Solid revenue performance or $608M • Service and da
Slide 7: Record-Low Postpaid Churn with Strong Sales
Record-Low Postpaid Churn with Strong Sales Postpaid Churn Prepaid and total churn also record lows 1.15% 1.10% • 88 percent of smartphones are on 0 97% 0.97% f family il plans l or business b i related l t d • Network improvements continue 69.7 • More than a third of postpaid smartphone subscribers
Slide 8: Mobile Data Revenues Up Almost 19 Percent
Mobile Data Revenues Up Almost 19 Percent Wireless Data Revenues ($ in billions) Data up $1 billion year over year Postpaid Data ARPU $6.4 • Smartphones are 77 percent of $5.4 $ $28 04 $28.04 postpaid p p sales $4.4 $24.57 • ARPU for smartphones is twice that $21.07 ARPU of non-smartphone subscriber
Slide 9: Record Wireless EBITDA Service Margin of 45.0 Percent
Record Wireless EBITDA Service Margin of 45.0 Percent Wireless EBITDA Service Margin Margin improvement drivers: Operating Income ($ in billions) 45.0% • New data pricing • New upgrade policy — record low 41.1% 41.6% postpaid upgrades of ~6 percent • Prudent cost management • Growing smartphone base
Slide 10: Strategic Business Services Continue Solid Growth
Strategic Business Services Continue Solid Growth Wireline Business Revenue Growth AT&T Business Solutions revenues Enterprise Small Business down 1.5 percent year over year Wholesale and GEM • Global Enterprise Solutions — 2% First revenue growth since 1Q08 0.2% 0% driven by advanced IP services -2
Slide 11: Total U-verse Subscribers Reach 6.8 Million, U-verse Revenues Up 38 Percent
Total U-verse Subscribers Reach 6.8 Million, U-verse U verse Revenues Up 38 Percent Wireline Consumer Wireline consumer revenues grow at Revenue Growth fastest rate in more than four years 1.7% • 1.7 percent revenue growth 1.0% 17.2% • Eighth consecutive quarter of 0.5% 0.1% 0.2% 15.5% year-over-yea
Slide 12: Consolidated Margin Summary
Consolidated Margin Summary Operating Income Margin Consolidated Wireline Improving consolidated margin 21.6% • Expanded year over year and 19.6% sequentially 19.2% • Focus on customer experience Wireline operating income margin expands year over year 13.4% 13.8% • Improving data revenue trends and
Slide 13: Strong Cash Flow and Balance Sheet
Strong Cash Flow and Balance Sheet Solid free cash flow 1H12 AT&T Cash Summary ($ in billions) • Up 18.0 percent year to date Cash From Operations $17.5 • Wireless capital expenditures of $4.7 billion, up $288 million year Capital Expenditures $8.9 over year Free Cash Flow $8.6 g balance sheet Stron
Slide 14: 2Q12 Summary: Solid Performance, Strong Momentum Going Forward
2Q12 Summary: Solid Performance, Strong Momentum Going Forward 80 percent of revenues from growth drivers: 2 percent consolidated revenue growth excluding Ad Solutions, Solutions 10 percent reported earnings growth, growth drivers up 5.5 percent year over year Outstanding wireless results: 45 percen
Slide 15: AT&T Investor Update 2Q12 Earnings Conference Call
AT&T Investor Update 2Q12 Q Earnings g Conference Call July 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 th