AT&T Inc. · NYSE:T
AT&T — Q4 2012 Earnings Presentation
18 slides from AT&T's earnings presentation, Jan 24, 2013
Slide 1: AT&T Investor Update
AT&T Investor Update 4Q12 Earnings Conference Call January 24, 2013 © 2013 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 Accomplishments Randall Stephenson and Outlook Chairman and Chief Executive Officer Results John Stephens 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 futu
Slide 4: Strategic Follow Through
Strategic Follow Through Spectrum • High-quality WCS spectrum will be brought to mobile use • Average nationwide spectrum increases by >30% 2012 Beginning of Project Velocity IP - VIP Year Priorities • 4G LTE to 300M POPs • Spectrum • IP broadband to 75 percent of wireline customer locations and cap
Slide 5: 2012 Full Year Highlights
2012 Full Year Highlights Solid results • 2.4% adjusted consolidated revenue growth • 8.5% adjusted EPS growth • Improving wireless margins with record smartphone sales • $39B cash from operations, best ever Balance Sheet strength • $12B debt refinanced at historic low rates, • Reduced average inter
Slide 6: 2012 Financial Summary
2012 Financial Summary Adjusted Adjusted Operating Adjusted EPS Revenues Income ($ in billions) ($ in billions) $126.4 $23.0 $2.31 Year-over-year revenues $123.4 $2.13 up 2.4% for full year and $21.9 2.8% for 4Q, with adjustments 8.5% 4.8% growth 2.4% growth growth Adjusted EPS up 8.5% for 2012 • 4Q
Slide 7: Transforming Consolidated Revenue
Transforming Consolidated Revenue AT&T 4Q Consolidated Revenues (excluding Advertising Solutions — $ in billions) Transformation of the business continues $32.6 $31.7 • 81 percent of revenues from wireless, wireline data and managed IT services Growth Wireless 53% 54% drivers up $1.4B, 4Q revenues o
Slide 8: Mobile Data Drives Wireless Revenue Growth
Mobile Data Drives Wireless Revenue Growth Total wireless Data Revenues Service Revenues Total Wireless revenues up ($ in billions) ($ in billions) Revenues 5.7 percent Postpaid Data ARPU Postpaid ARPU ($ in billions) $17.6 • Service revenues $16.7 up 4.2 percent • Data revenue growth $14.9 5.7%, $1
Slide 9: Strongest Postpaid Growth in Three Years
Strongest Postpaid Growth in Three Years Net Add Summary (in thousands) 4Q12 2012 Postpaid 780 1,438 Strong postpaid net adds drive Prepaid (166) 128 subscriber growth Reseller 234 1,027 • 1.1 million total wireless net adds Connected Devices 246 1,171 Branded computing subscribers Total 1,094 3,764
Slide 10: Mobile Share Sales Drive Growth of Usage-Based Data Plans
Mobile Share Sales Drive Growth of Usage-Based Data Plans Postpaid Usage-Based Mobile Share sales going strong Smartphone Smartphones Devices (in millions) • Ended the quarter with 6.6 million (in millions) subscribers % of Postpaid Base Tiered Data Mobile Share • More than a quarter of accounts 47.
Slide 11: Record Smartphones Drives EBITDA Growth
Record Smartphones Drives EBITDA Growth Wireless EBITDA ($ in billions) EBITDA EBITDA Service Margin 7.0% increase in full-year EBITDA $23.5 4Q12 wireless EBITDA service margin $21.9 of 29.1%, 39.6% for full year • Smartphone sales of 26.9 million, 6.4% higher than last year • 4Q12 postpaid upgrade
Slide 12: Wireline Consumer Revenue Growth Continues to Accelerate and Transform
Wireline Consumer Revenue Growth Continues to Accelerate and Transform Wireline U-verse Revenues Consumer revenues up 3.0 percent, ($ in billions) 10th consecutive quarter of growth YOY Consumer Revenue Growth $2.6 • IP data 61 percent of consumer $1.9 revenues, up from 53 percent a 3.0% year ago $1
Slide 13: Wireline Business Revenues Growing Sequentially
Wireline Business Revenues Growing Sequentially AT&T Wireline Business Revenue Growth Declines in legacy voice and data Sequential partially offset by growth in strategic 0.6% Year over Year business services and IP data 0% • Enterprise showing signs of growth -1% • Wholesale stabilizing -2% • Small
Slide 14: Consolidated Margin Summary
Consolidated Margin Summary Adjusted Operating Income Margin Consolidated Adjusted consolidated margin Wireline expands with record Smartphone Sales (millions) smartphone sales 17.8% 18.2% Wireline operating income margin stable due to: 12.1% • Improving revenue trends 11.9% • Scaling IP data • “One
Slide 15: Record Annual Cash Flows
Record Annual Cash Flows AT&T Cash Flow ($ in billions) Record operating and free cash flow Cash From Operating Free Cash Flow for 2012 Activities Capex • Focused on capital efficiency and operational execution $39.2 $34.7 • Net-debt-to-adjusted EBITDA ratio 13% at 1.58 YOY Return to Shareholders $1
Slide 16: 2012 Summary: Delivered on Guidance
2012 Summary: Delivered on Guidance 2012 Accomplishments • Consolidated revenue, margin and EPS growth* • Expanding wireless service EBITDA margins • Expanding wireline margins • Growing wireline consumer revenues • More than $19 billion in free cash flow • Capex $19 to $20 billion range • Share buy
Slide 17: 2013 Outlook
2013 Outlook Aggressive execution of strategic initiatives • Expand 4G LTE build to 250M POPs or more • Strong start for Project VIP Realistic set of • Scale new growth platforms assumptions, • Capex in ~$21B range achievable outlook Upper-single-digit or higher adjusted EPS growth • Consolidated re
Slide 18: AT&T Investor Update
AT&T Investor Update 4Q12 Earnings Conference Call January 24, 2013 © 2013 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