AT&T Inc. · NYSE:T
AT&T — Q2 2010 Earnings Presentation
15 slides from AT&T's earnings presentation, Jul 22, 2010
Slide 1: AT&T Investor Update 2Q10 Earnings Conference Call
AT&T Investor Update 2Q10 Q Earnings g Conference Call July 22, 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 th
Slide 2: Cautionary Language Concerning Forward Looking Statements
Cautionary Language Concerning Forward Looking Statements Forward-Looking Information set forth in this presentation contains financial estimates and other forward-looking forward looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion
Slide 3: 2Q10 Financial Summary: Solid Double-Digit EPS Growth
2Q10 Financial Summary: Solid Double-Digit EPS Growth AT&T Earnings per Share Consolidated revenue growth — p 0.6% to $ up $30.8 billion $0.68 • Continued wireless strength Impact from $0.07 one-time gain • Second straight quarter of sequential on Telmex $0.54 Internacional growth in wireline consum
Slide 4: AT&T 2Q10 Highlights: Solid Execution Leads to Revenue, Margins and Earnings Growth
AT&T 2Q10 Highlights: Solid Execution Leads to R Revenue, Margins M i and d Earnings E i Growth G th Strong Wireless Growth • 10.3% service revenue growth, 3.4% postpaid ARPU growth • 1.6 million organic net adds with best-ever churn levels Leader in mobile • Continued strong growth in integrated an
Slide 5: Consolidated Revenue Trends
Consolidated Revenue Trends AT&T Consolidated Revenues ($ in billions) 2Q10 consolidated revenues $30.6 $30.8 totaled $30.8 billion, up $194 million year over year • Key drivers: Wireless 43% (100% Owned) 46% • Strong wireless growth • Solid U-verse gains • Improved p business trends Wireline Data/
Slide 6: Wireless Service Revenues Up 10.3%, Driven By Continued ARPU Growth, Solid Subscriber Gains
Wireless Service Revenues Up 10.3%, Driven By C ti Continuedd ARPU Growth, G th Solid S lid Subscriber S b ib Gains G i AT&T Postpaid ARPU $62.63 3.4% growth in postpaid subscriber Postpaid Churn ARPU — sixth consecutive quarter with $61.89 a year-over-year increase $61.61 $61.53 Best-ever total and
Slide 7: 27.2% Wireless Data Revenue Growth, Leadership in Mobile Broadband
27.2% Wireless Data Revenue Growth, L d Leadership hi iin M Mobile bil Broadband B db d Wireless data revenues up more than 3G Postpaid Wireless Data $900 million versus 2Q09, driven by Integrated Revenues continued rapid adoption of smartphones Devices ($ in billions) (in millions) Postpaid Data AR
Slide 8: Wireless Network Initiatives: Upgrading to HSPA+, Increasing Backhaul and Data Speeds
Wireless Network Initiatives: Upgrading to HSPA+, I Increasing i Backhaul B kh l and d Data D t Speeds S d Nation’s fastest mobile broadband network, AT&T Companywide Average 3G Wireless Data getting faster Download Speeds • 32%-47% increase in download speeds where HSPA 7.2 and fiber backhaul in pl
Slide 9: Wireless Margin Expansion Year Over Year, Operating Income Up 25%
Wireless Margin Expansion Year Over Year, O Operating ti I Income UUp 25% AT&T Wireless AT&T Wireless Wireless service margin and operating OIBDA Operating Income income upp versus 2Q09 Q — driven by: y S Service i Margin i ($ in billions) • 10.3% service revenue and $4.1 3.4% postpaid ARPU growth 4
Slide 10: AT&T U-verse Drives Transformation in Wireline Consumer
AT&T U-verse Drives Transformation in Wireline Consumer Sequential growth in total consumer YOY Change – Wireline Consumer Revenues revenues, flat year over year Strong U-verse growth 0.0% (1.3%) • 209,000 U-verse TV net adds in 2Q to reach 2.5 million, up more than 900,000 over (3.6%) past y p year
Slide 11: Business Markets Revenue Trends Continue Improvement
Business Markets Revenue Trends Continue Improvement YOY Change — Wireline Business Continued improvement in business Service Revenues p revenue comparisons; ; strength g in (4.0%) strategic business services (4.8%) (5.8%) • Continued mid-teens percentage (4.8%) growth in strategic business services
Slide 12: Consolidated and Wireline Margin Expansion, Reflecting Solid Execution
Consolidated and Wireline Margin Expansion, Reflecting Solid Execution AT&T Consolidated AT&T Wireline Consolidated margin on track to Operating Income Operating Income beat full-year outlook, reflecting Margin M Margin i improvements in wireless and wireline • 180 basis-point improvement 19.8% over
Slide 13: Strong Cash Flow with Improving Debt Metrics
Strong Cash Flow with Improving Debt Metrics Free cash flow positioned to beat 1H10 AT&T Cash Summary ($ in billions) y full-year outlook Cash From Operations $15.8 • Cash from operations reflects progress on cost initiatives Capital Expenditures $8.2 • 1H10 Wireless capital expenditures Free Cash F
Slide 14: 2Q10 Summary
2Q10 Summary Solid Growth, Improved Margins, Strong Double-Digit Earnings Growth • Improving Financials — positive trends in both wireless and wireline • Continued Strength in Wireless — best-ever churn levels and increasing gppostpaid p ARPU • AT&T U-verse Growth Reshaping Consumer — driving data g
Slide 15: AT&T Investor Update 2Q10 Earnings Conference Call
AT&T Investor Update 2Q10 Q Earnings g Conference Call July 22, 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 th