AT&T Second Quarter Net Income Drops 14%

AT&T'-Second-Quarter-Net-Income-Drops-14%AT&T second quarter, 2105 net income dropped by 14 percent. Net income for the quarter was $3 billion compared to net income of $3.5 billion in the year-ago quarter.

AT&T second quarter consolidated revenues was $33 billion, up 1.4 percent versus the year-earlier period reflecting Mexican acquisitions and pressure from foreign exchange and global hubbing exit. AT&T today reported solid second-quarter results with strong adjusted EPS growth, expanding margins and growing free cash flow.

Randall Stephenson, chairman and CEO, AT&T said, “We grew revenues, expanded margins and delivered double-digit adjusted EPS and cash flow growth. We added more than 2 million new wireless subscribers as the repositioning of our smartphone base nears completion. We also began expanding high-quality, high-speed wireless service to Mexican consumers and businesses.

“This is a pivotal time for us. We look forward to closing DIRECTV and building on this momentum by delivering a new TV everywhere experience integrated with mobile and high-speed Internet service,” added Stephenson.

AT&T’s Q2, 2015 Highlights
2.1 million net adds including 410,000 postpaid, 331,000 prepaid and 1 million connected cars
About 1.2 million branded (postpaid and prepaid) smartphones added to base
Completion of Nextel Mexico acquisition
Integration with Iusacell underway
Established plans to own and operate 4G LTE network in Mexico with plans to cover 100 mn POPs
Source: AT&T

Compared with results for the second quarter of 2014, operating expenses were $27.3 billion versus $27 billion; operating income was $5.7 billion versus $5.6 billion in the second quarter a year ago, and operating income margin was 17.3 percent, up slightly from 17.2 percent in the year-ago quarter. When adjusting for merger and integration-related expenses, operating income was $6.5 billion versus $5.8 billion a year ago; and operating income margin was 19.6 percent, up 190 basis points from a year ago.

Cash from operating activities totaled $9.2 billion in the second quarter and $15.9 billion year to date; and capital expenditures totaled $4.7 billion and $8.7 billion year to date. Free cash flow — cash from operating activities minus capital expenditures — totaled $4.5 billion for the quarter and $7.2 billion year to date, an increase over the year-ago quarter even as the company continues to invest in its high-quality network and customers.

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