AT&T Inc. · NYSE:T
AT&T — Q3 2010 Earnings Presentation
18 slides from AT&T's earnings presentation, Oct 21, 2010
Slide 1: AT&T Investor Update 3Q10 Earnings Conference Call
AT&T Investor Update 3Q10 Q Earnings g Conference Call October 21, 2010 © 2010 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 Results Rick Lindner Senior Executive Vice President and Chief Financial Officer Wireless & Consumer Ralph de la Vega President and Chief Executive Officer, AT&T Mobility and Consumer Markets 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: 3Q10 Financial Summary
3Q10 Financial Summary 3Q09 3Q10 3Q earnings per share up 3.8%, and up 8.8% year to date, Reported EPS $0 54 $0.54 $2 08 $2.08 excluding significant items Significant Items: Consolidated revenue growth One-time tax resolution $0.03 $1.40 of 2.8% — strongest growth Gain from f Sterling l sale l $0.13
Slide 5: AT&T 3Q10 Highlights: Solid Execution Leads to Strong Sales and Revenue Growth
AT&T 3Q10 Highlights: Solid Execution Leads to Strong Sales and Revenue Growth Solid Revenue Growth Leader in • Consolidated revenues up 2 2.8% 8% mobile • 11.4% wireless revenue growth, 2.0% postpaid ARPU growth broadband • First year-over-year wireline consumer revenue growth in more than two year
Slide 6: Consolidated Revenues Increase 2.8%
Consolidated Revenues Increase 2.8% AT&T Consolidated Revenues Revenues of $31.6 billion are ($ in billions) up p$$847 million,, or 2.8%,, $31 6 $31.6 $30.7 year over year. Key drivers: • Strong wireless growth • Solid U-verse gains with Revenues Wireless 44% 48% wireline consumer revenue up 9.9% ye
Slide 7: Strongest 3Q Wireless Volumes in AT&T's History
Strongest 3Q Wireless Volumes in AT&T’s AT&T s History Record integrated device sales, double-digit wireless g growth shows benefits of wireless strategy gy • Record growth in integrated devices — growing high-quality, data-centric base • Record gross adds • Record number of customer upgrades • Reco
Slide 8: Wireless Service Revenues Up 10.5%
Wireless Service Revenues Up 10.5% - Driven by Strong Subscriber Gains, Postpaid ARPU Growth AT&T Postpaid ARPU $62.84 $62.63 Postpaid Churn 2.0% annual growth in postpaid subscriber ARPU — seventh consecutive quarter with a year-over- $61.89 year increase $61.61 $61.53 Record third-quarter total ch
Slide 9: 30.5% Wireless Data Revenue Growth
30.5% Wireless Data Revenue Growth Wireless data revenues up $1.1 billion versus 3Q09, driven by continued rapid 3G Postpaid Wireless Data adoption of smartphones Integrated g Revenues Devices ($ in billions) Continued C ti d strong t integrated i t t d device d i (in millions) Postpaid Data ARPU gr
Slide 10: Mobile Broadband Leadership
Mobile Broadband Leadership • Broadest portfolio of devices • All major ajo operating ope a g systems sys e s • Leader in connected devices 10
Slide 11: Best Technology Path Plan For Seamless Customer Experience
Best Technology Path Plan For Seamless Customer Experience AT&T Today 6-12 Months 2011 and Beyond HSPA 7.2 HSPA+ LTE Theoretical throughput Theoretical throughput Theoretical throughput speeds up to 7.2 Mbps speeds over 2X speeds over 7X Software deployed Software deployed Trials in Dallas early 201
Slide 12: Record Sales Drive Wireless Margins, Outlook on Track
Record Sales Drive Wireless Margins, Outlook on Track AT&T Wireless OIBDA Service Margin Integrated Device Sales 37.6% wireless OIBDA service 44 5% 44.5% 43.1% margin i 40.3% 40.7% • Record-level smartphone sales 37.6% and upgrades impact margins • Upgrades > 10% • Offset by higher ARPU, lower churn
Slide 13: Wireline Consumer Growth Turns Positive
Wireline Consumer Growth Turns Positive First year-over-year growth in total YOY Change – Wireline wireline consumer revenues in over Consumer Revenues two years 0.2% • 236,000 236 000 U-verse U e se TV net adds to reach each 2.7 million, continued strong attach rates (1.3%) 0.0% • 148,000 total bro
Slide 14: Wireline Business Revenue Trends Continue to Improve
Wireline Business Revenue Trends Continue to Improve YOY Change — Wireline Business AT&T Business Solutions revenue Service Revenues trends continue to improve; strategic business services (3.7%) continues to show strength (4.0%) • 15.4% growth in strategic (4.8%) business services revenues (7.3%) (
Slide 15: Consolidated and Wireline Margins Summary
Consolidated and Wireline Margins Summary Consolidated margin stable AT&T Consolidated AT&T Wireline Operating Income Operating Income despite record wireless sales Margin M Margin i • Margin pressured sequentially 17.5% and year over year 17.3% • Continued progress in wireless revenue growth and ch
Slide 16: Strong Cash Flow
Strong Cash Flow Free cash flow and capital 3QYTD AT&T Cash Summary expenditures in line with previously ($ in billions) outlined full-year outlook • Cash from operations reflects Cash From Operations $25.4 progress on cost initiatives Capital Expenditures $13.7 • Year-to Year to date wireless capit
Slide 17: 3Q10 and Year-to-Date Summary
3Q10 and Year-to-Date Summary Increasing Revenue Growth — consolidated, wireless and d wireline i li consumer Strong Record Wireless Metrics — postpaid ARPU increasing, revenue and total churn decreasing…and strong integrated device sales earnings growth AT&T U-verse Leading Wireline Consumer Growth
Slide 18: AT&T Investor Update
AT&T Investor Update 3Q10 Q Earnings g Conference Call October 21, 2010 © 2010 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