At&t Inc. · NYSE:T
At&t — Q1 2016 Earnings Presentation
14 slides from At&t's earnings presentation, Apr 26, 2016
Slide 1: 1st Quarter Earnings Conference Call
1st Quarter Earnings Conference Call AT&T Investor Update April 26, 2016 © 2016 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 m
Slide 2: Agenda
Financial Summary Mike Viola Agenda Senior Vice President – Investor Relations Results John Stephens Senior Executive Vice President and Chief Financial Officer Q&A © 2016 AT&T Intellectual Property. All rights reserved. AT&T, Globe logo, Mobilizing Your World and DIRECTV are registered trademarks a
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 fut
Slide 4: 1Q16 Financial Summary
1Q16 Financial Summary $ in billions, except EPS First-quarter consolidated revenues Consolidated Revenues Adjusted EPS Free Cash Flow of $40.5 billion, up 24% $40.5 $0.72 $3.2 • DIRECTV acquisition $0.65 $2.8 24% • Growth in video and IP-based services 10.8% 17% $32.6 • Lower equipment sales and fo
Slide 5: Strategy Is Working
Strategy Is Working Focus on Profitable Growth • Fourth straight quarter of double-digit adjusted EPS growth • Margins expand in every domestic segment • Record wireless EBITDA margins Efficiencies Offset Investment in Growth Initiatives • $1.5 billion in DIRECTV run-rate cost synergies expected by
Slide 6: Business Solutions: Strong Margin Expansion as Revenues Grow
Business Solutions: Strong Margin Expansion as Revenues Grow Business Solutions EBITDA ($ in billions) Service revenue growth offsets equipment EBITDA Margin and FX impacts $6.5 $6.8 $323M • Total revenues up, business wireless revenues 5% up more than 2% • Growth in all retail customer segments 180
Slide 7: Entertainment Group: Integration on Track as Revenues and Margins Grow
Entertainment Group: Integration on Track as Revenues and Margins Grow Revenue Trends (adjusted1) Adjusted revenues and margins grow ($ in billions) • Adjusted1 revenues up 3.1% $12.3 $12.7 • EBITDA margins expand to 24.3% 3.1% • Merger synergies on track Video/ Ad Sales 22.1% +4.6% • Ad sales is no
Slide 8: U.S. Wireless: Best-Ever Wireless EBITDA Service Margins
U.S. Wireless: Best-Ever Wireless EBITDA Service Margins Wireless Trends ($ in billions) Continued margin expansion as service 1Q15 1Q16 Δ revenues stabilize Service Revenues 14.8 14.8 - • Strong EBITDA margin growth as Equipment Revenues 3.4 3.2 (0.2) operating cost reductions outpace Total Revenue
Slide 9: U.S. Wireless: Strong Prepaid and Connected Device Gains
U.S. Wireless: Strong Prepaid and Connected Device Gains Total Net Adds Branded Net Adds Cricket and connected devices drive (in thousands) (in thousands) strong U.S. subscriber growth 2,310 1,195 • 629,000 branded net adds; including Mexico Mexico 137,000 branded phone net adds 1,218 1,781 – 500,00
Slide 10: International: Strong Mexico Subscriber Gains as 4G LTE Deployment Reaches 51 Million POPs
International: Strong Mexico Subscriber Gains as 4G LTE Deployment Reaches 51 Million POPs 1Q16 Mexico Wireless Subscribers Mexico (in thousands) More than 500,000 wireless net adds 116 450 • Mexico City launched (37) • Fewer handset sales and FX affect 9,213 sequential revenues 8,684 529 Net Adds D
Slide 11: Consolidated Adjusted Margins
Consolidated Adjusted Margins EBITDA Improved Consolidated Margins ($ in billions) EBITDA Margin • Margin expansion across all domestic segments $13.3 • Record wireless EBITDA service margins $10.7 Cost reductions and efficiencies continue 32.7% 32.8% to drive margin improvement • Network and techno
Slide 12: Cash Flow Summary
Cash Flow Summary AT&T Cash Flow Summary Cash from operations up $1.2 billion, ($ in billions) 17% increase year over year • Overcomes significant seasonal pressure 1Q15 1Q16 in working capital Cash from Operations $6.7 $7.9 • Improving margins drive cash flows Free Cash Flow $2.8 $3.2 • Capital inv
Slide 13: 1Q16 Summary: Solid Performance with Full-Year Guidance on Track
1Q16 Summary: Solid Performance with Full-Year Guidance on Track Strong adjusted earnings, revenue and margin growth 10.8% adjusted EPS growth; consolidated margin expansion Integrated offers launched; streaming plans announced Video/wireless/IP broadband bundles showcase integrated network offering
Slide 14: 1st Quarter Earnings Conference Call
1st Quarter Earnings Conference Call AT&T Investor Update April 26, 2016 © 2016 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 m