AT&T Reports Q2 2012 Results With Consolidated Revenues Of $31.6 Billion, Operating Income Was $6.8 Billion, 10 Percent Earnings Growth

Posted on Jul 24 2012 - 12:12pm by Editorial Staff

AT&T just announced its second quarter 2012 results with consolidated revenues of $31.6 billion, up 0.3 percent versus the year-earlier period; up 2.0 percent when adjusted for Advertising Solutions sale.  Compared with results for the second quarter of 2011, operating expenses were $24.8 billion versus $25.3 billion, down 2.3 percent year over year; excluding Advertising Solutions, operating expenses were $24.5 billion versus $24.6 billion in the year-ago quarter, down 0.6 percent.

Operating income was $6.8 billion, up from $6.2 billion; and AT&T’s operating income margin expanded to 21.6 percent, compared to 19.6 percent, the best in four years. The net income attributable to AT&T totaled $3.9 billion, or $0.66 per diluted share, up from $3.6 billion, or $0.60 per diluted share, in the year-earlier quarter.

Cash from operating activities totaled $9.7 billion, and capital expenditures totaled $4.5 billion. Free cash flow — cash from operating activities minus capital expenditures — totaled $5.1 billion. The company repurchased 75.8 million of its shares for $2.5 billion in the quarter. Year to date, the company has repurchased 143.5 million shares for $4.6 billion.

Q2 2012 Results Highlights:

  • $0.66 diluted EPS compared to $0.60 diluted EPS in the second quarter of 2011, up 10 percent year over year and sequentially
  • Consolidated revenues of $31.6 billion, up 0.3 percent versus the year-earlier period; up 2.0 percent when adjusted for Advertising Solutions sale
  • Highest-ever wireless margins, operating income margin of 30.3 percent, with EBITDA service margin of 45.0 percent
  • $2.5 billion in stock buybacks; 75.8 million shares repurchased
  • AT&T’s growth engines — wireless, wireline data and managed services — represented 80 percent of total revenues when excluding Advertising Solutions, and grew 5.5 percent versus the same quarter a year ago, led by:
  • 18.8 percent growth in wireless data revenues, up $1 billion versus the year-earlier quarter
  • 13.5 percent growth in strategic business services revenues
  • 38.3 percent growth in U-verse revenues
  • Best-ever postpaid, prepaid and total wireless churn; postpaid churn drops to 0.97 percent
  • 1.3 million total wireless net adds, with gains in every customer category; 320,000 postpaid net adds
  • Strong smartphone sales of 5.1 million with more than one-third of all postpaid smartphone subscribers now on 4G-capable devices
  • Branded computing (tablets, tethering plans, etc.) net adds of 496,000 to reach a total of 6.3 million, up more than 50 percent versus a year ago
  • Postpaid wireless subscriber ARPU (average monthly revenues per subscriber) up 1.7 percent to $64.93
  • First enterprise revenue growth in more than four years
  • Wireline consumer revenues up 1.7 percent versus the year-earlier period; their strongest growth in more than four years
  • 6.8 million total AT&T U-verse subscribers (TV and high speed Internet) in service; U-verse TV subscribers grew 22 percent year over year
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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.