AT&T boosts Q4 revenue by over 22% thanks to DirecTV

News General United States 27 JAN 2016
AT&T boosts Q4 revenue by over 22% thanks to DirecTV
AT&T posted USD 42.1 billion of revenue in the fourth quarter of 2015, up by over 22 percent on the fourth quarter of 2014, primarily due to its acquisition of DirecTV. The company reduced its operating expenses to USD 34.6 billion, compared with USD 39.9 billion a year earlier. Operating income grew to USD 7.5 billion, compared to a USD 5.5 billion operating loss in the fourth quarter of 2014. AT&T posted a USD 4 billion net profit (USD 0.65 per share), versus a USD 4 billion net loss (USD 0.77 per share) in the year-ago quarter. Adjusting for a USD 0.22 non-cash gain on benefit plans from an annual remeasurement process and USD 0.20 of charges mainly for merger and integtration-related items, EPS was USD 0.63, versus USD 0.56 a year ago. 

AT&T’s business solutions group generated USD 18.21 billion of revenue in the quarter, including USD 10.14 billion from wireless and USD 8.08 billion from fixed services. The division posted a USD 6.23 billion EBITDA and a USD 3.72 billion operating income. It had 73.66 million business wireless subscribers and connections at the end of December, versus 71.56 million three months earlier. 

AT&T’s entertainment group posted USD 12.99 billion of revenue in the fourth quarter, including USD 9.25 from video entertainment, USD 1.74 billion from high-speed internet, and USD 1.37 billion from legacy voice and data services. The entertainment group posted a USD 1.45 billion operating profit. The operator’s video connections declined to 25.4 million at the end of December, including 19.78 million DirecTV customers and 5.61 million U-verse customers. This compares to a total of 25.42 million at the end of September, when it had 19.57 million DirecTV subscribers and 5.85 million U-verse subscribers. Broadband connections fell to 14.29 million at the end of the fourth quarter from 14.32 million at the end of the third quarter. 

The operator’s consumer mobility segment posted USD 8.75 billion of operating revenue and a USD 2.14 operating income in the fourth quarter. It added 671,000 net mobile customers in the fourth quarter, taking the total to 54.98 million. At the end of December AT&T had 28.81 million postpaid customers, 11.55 million prepaid customers and 13.69 million reseller customers. Connected devices stood at 929,000. Net adds in the quarter wee 174,000 postpaid, 469,000 prepaid and 50,000 reseller. Connected devices declined by 22,000.

AT&T’s 2016 outlook is unchanged since it provided guidance after its acquisition of DirecTV. The company anticipates double-digit revenue growth and adjusted EPS growth in the mid-single digit range or better. It also expects to report stable consolidated margins with ramp in in Mexico investment and capital spending in the USD 22 billion range.

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General

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DirecTV

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United States

Tags:

Voice services, Data services, Sales figures, Financial figures, Wireline, Wireless, Internet Access, Broadcast

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