At&t Inc. · NYSE:T
At&t — Q2 2011 Earnings Presentation
17 slides from At&t's earnings presentation, Jul 21, 2011
Slide 1: AT&T Investor Update 2Q11 Earnings Conference Call
AT&T Investor Update 2Q11 Q Earnings g Conference Call July 21, 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 th
Slide 2: Agenda
Agenda Introduction Brooks McCorcle Senior Vice President-Investor Relations Results John Stephens Senior Executive Vice President and Chief Financial Officer AT&T/T-Mobile USA Wayne Watts Merger Update Senior Executive Vice President and General Counsel Q and A 2
Slide 3: 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 4: 2Q11 Financial Summary
2Q11 Financial Summary AT&T Diluted Adjusted EPS Consolidated Revenues (in billions) Solid quarter, continued revenue $0.60 $0.60 growth with stable-to-improving $0.57 margins i and d earnings i $0.60 EPS — sequential growth, $31.5 $31.2 $ stable year over year (adjusted) • Includes pressure from Al
Slide 5: AT&T 2Q11 Highlights: Solid Earnings, Revenue Growth, Strong Free Cash Flow
AT&T 2Q11 Highlights: Solid Earnings, Revenue Growth, Strong Free Cash Flow Setting the Pace in Mobile Broadband • Record 2Q Q smartphone p sales Results reflect • Continued strong data revenue and ARPU growth strong trends • Wireless data a $22 billion annualized revenue stream with growth rate >23
Slide 6: Consolidated Revenues Continue to Grow
Consolidated Revenues Continue to Grow AT&T Consolidated Revenues ($ in billions) Revenues of $31.5 billion, $31.5 up $687 $ million, or 2.2%, $30.8 year over year. Key drivers: • Strong wireless growth Revenues • IP data and video Wireless 46% 50% up $1.8B or 8.3% • Improved business wireline year
Slide 7: Mobile Broadband Drives 9.5% Total Wireless Revenue Growth
Mobile Broadband Drives 9.5% Total Wireless Revenue Growth Service Revenues Postpaid ARPU 2.0% growth in postpaid ARPU ($ iin billions) billi ) • Industry-leading 10th consecutive Data Revenue year-over-year increase $63.87 $14.2 • Adding data-rich customers with $13.2 $62.63 $ record 2Q smartphone
Slide 8: Strong Subscriber Gains with Solid Postpaid Net Adds and Stable Churn
Strong Subscriber Gains with Solid Postpaid Net Adds and Stable Churn Gross Adds Total Subscribers 1.1 million total wireless net adds — (in millions) (in millions) to reach 98.6 million; gains in every category Postpaid Subscribers 98.6 5.3 4.9 90.1 2Q11 Net Add Summary (in thousands) 68.4 67.0 Pos
Slide 9: Smartphones and Branded Computing Devices Lead Strong Wireless Data Growth
Smartphones and Branded Computing Devices Lead Strong g Wireless Data Growth Wireless Data Revenues ($ in billions) Smartphones drive data growth $5.4 Postpaid p Data ARPU p • 5.6 million smartphone sales,, $4.4 43% increase year over year and $24.57 $3.4 best-ever second quarter $21.07 $17.77 Data
Slide 10: Wireless Margins Expand Sequentially, Even with Stronger Smartphone Sales
Wireless Margins Expand Sequentially, Even with Stronger Smartphone Sales Adjusted Wireless EBITDA Service Margin Merger EBITDA Service Margin Impact Postpaid Smartphone Sales (in millions) Wireless EBITDA service margin of 41.1%; without integration costs 43.3% margins would have been 42.0% 42.0% 4
Slide 11: AT&T/T-Mobile USA Merger Update
AT&T/T-Mobile USA Merger Update Remain on Track for 1Q12 Closing • DOJ and FCC staffs working very hard — asking the questions you would expect • Detailed review of efficiencies which is key public benefit of transaction Benefits and Competition • Enormous efficiencies that increase output and impro
Slide 12: U-verse Drives Consumer IP Data Growth
U-verse Drives Consumer IP Data Growth Wireline consumer revenues grow year Wireline U-verse Revenues ($ in billions) over year for fourth straight quarter U-verse U verse Penetration $1.6 U-verse revenue growing 57% year $1.0 over year 15.5% • 202,000 U-verse TV net adds to reach $0.5 $ 13.4% 3.4 m
Slide 13: Business Solutions Trends Continue to Improve
Business Solutions Trends Continue to Improve 2Q11 AT&T Wireline Business AT&T Business Solutions revenues Service Revenue Growth stable sequentially Sequential Year over Year* 0% Global Enterprise Solutions — IP data, outsourcing and integration -0.2% services growing at >10% -2% 3 2% -3.2% Wholesa
Slide 14: Consolidated Margin Summary
Consolidated Margin Summary Operating Income Margin Consolidated Wireline Stable to improving consolidated margin • Sequential growth in wireless and 19.7% 19.6% 18.6% wireline margins • Progress with cost initiatives Wireline operating income margin 13.2% 13.1% • Improving revenue trends and solid
Slide 15: Strong Cash Flow
Strong Cash Flow Free cash flow in line with full-year outlook 1H11 AT&T Cash Summary • Strong cash from operations ($ iin billions) billi ) due to revenue growth and working capital initiatives Cash From Operations $16.8 • 1H11 wireless capital expenditures Capital Expenditures $9.5 up $1 $1.0 0 bi
Slide 16: 2Q11 Summary: Solid Second Quarter, Positive Momentum Going Forward
2Q11 Summary: Solid Second Quarter, Positive Momentum Going Forward Revenue trends continue to be strong across key growth areas: wireless, U-verse, strategic business services Mobile broadband opportunities expanding: record smartphone sales, strong branded computed device uptake, 4G LTE deployment
Slide 17: AT&T Investor Update 2Q11 Earnings Conference Call
AT&T Investor Update 2Q11 Q Earnings g Conference Call July 21, 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 th