T 8-K
At&T Inc. (T)
8-K
2024-04-24
For: 2024-04-24
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Added on
July 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________________________________
FORM 8-K
______________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) April 24, 2024
______________________________________________________
(Exact Name of Registrant as Specified in Charter)
______________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code (210 ) 821-4105
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities Registered Pursuant to Section 12(b) of the Act
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events.
Throughout this document, AT&T Inc. is referred to as “we” or “AT&T.” AT&T is a holding company whose subsidiaries and affiliates operate worldwide in the telecommunications and technology industries.
Overview
We announced on April 24, 2024 that first-quarter 2024 net income attributable to common stock totaled $3.4 billion, or $0.47 per diluted share. First-quarter 2024 income per diluted share included amounts totaling $0.7 billion (pre-tax), or $(0.08) per share, resulting from the following significant items: $(0.06) per share from restructuring charges related to our Open RAN deployment and noncash impairment charges and $(0.03) per share from our proportionate share of DIRECTV intangible amortization, partially offset by $0.01 per share of other benefit related market-driven adjustments and other items. These results compare with a reported net income attributable to common stock of $4.2 billion, or $0.57 per diluted share, in the first quarter of 2023, which included $(0.04) per share from our proportionate share of DIRECTV intangible amortization and $(0.01) per share related to Accounting Standards Update No. 2020-06, partially offset by $0.02 per share of benefit-related market-driven adjustments.
Operating revenues in the first quarter of 2024 were $30.0 billion, down 0.4 percent from the first quarter of 2023, reflecting lower Mobility equipment revenue and continued declines in Business Wireline revenues. These decreases were partially offset by increased service revenues in Mobility and Consumer Wireline. Revenues also include increases resulting from favorable impacts of foreign exchange rates in Mexico.
Operating expenses in the first quarter of 2024 were $24.2 billion, up 0.2 percent, driven by higher depreciation expense related to our continued fiber and 5G investment, and the shortening of estimated lives of network equipment that will be replaced earlier than originally anticipated with our Open RAN deployment (our collaboration with Ericsson for commercial scale open radio access network deployment) and associated restructuring charges. These increases were largely offset by lower Mobility equipment costs resulting from lower wireless sales volumes and our continued transformation efforts.
Operating income in the first quarter was $5.8 billion compared to $6.0 billion in the comparable 2023 period, and AT&T’s first-quarter operating income margin was 19.5 percent, compared to 19.9 percent in the comparable 2023 period.
Other income (expense) - net in the first quarter was $0.5 billion compared to $0.9 billion in the comparable 2023 period. The decrease reflects lower pension and postretirement benefit credits in 2024, and impairments recognized on a held-for-sale business and an equity investment in a Latin America satellite business.
Cash from operating activities in the first quarter of 2024 was $7.5 billion, up $0.9 billion when compared to 2023, reflecting operational growth and timing of working capital, including higher receivable sales that were partially offset by higher device payments. Capital expenditures in the first quarter of 2024 were $3.8 billion, and when including $0.8 billion cash paid for vendor financing, capital investment was $4.6 billion, compared to prior-year first quarter capital investment of $6.4 billion (capital expenditures of $4.3 billion and vendor financing of $2.1 billion).
Segment Summary
We analyze our segments based on segment operating income, which excludes acquisition-related costs and other significant items. Our reportable segments are: Communications and Latin America.
Communications
Our Communications segment consists of our Mobility, Business Wireline and Consumer Wireline business units.
First-quarter 2024 operating revenues were $28.9 billion, down 1.0 percent versus first-quarter 2023, with segment operating income of $6.7 billion, consistent with the year-ago quarter. The Communications segment operating income margin was 23.4 percent, compared to 23.1 percent in the year-earlier quarter.
Mobility
Mobility revenues for the first quarter of 2024 were $20.6 billion, up 0.1 percent versus the first quarter of 2023, driven by service revenue growth of 3.3% from subscriber and postpaid phone ARPU growth, offset by lower equipment revenues due to lower sales volumes. Mobility operating expenses totaled $14.1 billion, down 1.3 percent versus the first quarter of 2023 due to lower equipment expenses resulting from lower device sales, partially offset by higher depreciation expense due to our Open RAN deployment and network transformation. Mobility’s operating income margin was 31.4 percent compared to 30.5 percent in the year-ago quarter.
In our Mobility business unit, during the first quarter of 2024, we reported a net gain of 741 thousand wireless subscribers. At March 31, 2024, wireless subscribers totaled 114.5 million (including approximately 5.9 million FirstNet connections) compared to 110.8 million at March 31, 2023. Effective with our first-quarter 2024 reporting, we have removed connected devices from our total
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Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.
During the first quarter, total phone net adds (postpaid and prepaid) were 350,000 with total net adds by subscriber category as follows:
•Postpaid subscriber net adds were 389,000, with phone net adds of 349,000.
•Prepaid subscriber net adds were 1,000, with phone net adds of 1,000.
•Reseller net adds were 351,000.
For the quarter ended March 31, 2024, postpaid phone-only ARPU increased 0.9 percent versus the year-earlier quarter.
Postpaid phone-only churn was 0.72 percent compared to 0.81 percent in the first quarter of 2023. Total postpaid churn was 0.89 percent compared to 0.99 percent in the year-ago quarter.
Business Wireline
Business Wireline revenues for the first quarter of 2024 were $4.9 billion, down 7.8 percent versus the year-ago quarter, primarily due to lower demand for legacy voice and data services as well as product simplification, partially offset by growth in connectivity services and nonrecurring equipment revenues. Business Wireline operating expenses totaled $4.8 billion, down 2.1 percent when compared to the first quarter of 2023, due to lower personnel costs, and lower marketing and customer support expenses, partially offset by higher equipment costs. Business Wireline operating income margin was 1.3 percent compared to 7.1 percent in the year-earlier quarter.
Consumer Wireline
Consumer Wireline revenues for the first quarter of 2024 were $3.4 billion, up 3.4 percent versus the year-ago quarter, driven by growth in broadband revenues attributable to fiber, partially offset by declines in legacy voice and data services and other services. Consumer Wireline operating expenses totaled $3.1 billion, down 0.3 percent versus the first quarter of 2023, largely driven by lower customer support costs that were offset by increased network-related costs and depreciation. Consumer Wireline operating income margin was 6.4 percent compared to 2.9 percent in the year-earlier quarter.
At March 31, 2024, Consumer Wireline had approximately 13.8 million broadband connections compared to 13.7 million at March 31, 2023. During the first quarter, broadband subscriber net adds were 55,000, with growth in AT&T Internet Air and fiber broadband net adds of 252,000. Total broadband and DSL connections were 13.9 million at March 31, 2024, compared to 13.9 million at March 31, 2023.
Latin America
Our Latin America segment consists of our Mexico business unit and is subject to foreign currency fluctuations.
Revenues were $1.1 billion, up 20.4 percent when compared to the first quarter of 2023, primarily due to favorable impacts of foreign exchange rates, higher equipment sales and subscriber growth. Operating expenses were $1.1 billion, up 16.1 percent, driven by unfavorable impact of foreign exchange and higher equipment sales attributable to subscriber growth. Mexico’s operating income margin was 0.3 percent, compared to (3.4) percent in the year-earlier quarter.
We had approximately 22.5 million Mexico wireless subscribers at March 31, 2024 compared to 21.6 million at March 31, 2023. During the first quarter of 2024, we had postpaid net adds of 116,000 and prepaid net adds of 79,000.
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information set forth in this filing contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this filing based on new information or otherwise.
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Item 9.01 Financial Statements and Exhibits.
The following exhibits are filed as part of this report:
(d) | Exhibits | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AT&T INC. | |||||
Date: April 24, 2024 | By: /s/ Sabrina Sanders . Sabrina Sanders Senior Vice President - Chief Accounting Officer and Controller | ||||
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| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Statements of Income | |||||||||||
| Dollars in millions except per share amounts | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Operating Revenues | |||||||||||
| Service | $ | 24,842 | $ | 24,617 | 0.9 | % | |||||
| Equipment | 5,186 | 5,522 | (6.1) | % | |||||||
| Total Operating Revenues | 30,028 | 30,139 | (0.4) | % | |||||||
| Operating Expenses | |||||||||||
| Cost of revenues | |||||||||||
| Equipment | 5,143 | 5,658 | (9.1) | % | |||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 6,811 | 6,673 | 2.1 | % | |||||||
| Selling, general and administrative | 7,021 | 7,175 | (2.1) | % | |||||||
| Asset impairments and abandonments and restructuring | 159 | — | — | % | |||||||
| Depreciation and amortization | 5,047 | 4,631 | 9.0 | % | |||||||
| Total Operating Expenses | 24,181 | 24,137 | 0.2 | % | |||||||
| Operating Income | 5,847 | 6,002 | (2.6) | % | |||||||
| Interest Expense | 1,724 | 1,708 | 0.9 | % | |||||||
| Equity in Net Income of Affiliates | 295 | 538 | (45.2) | % | |||||||
| Other Income (Expense) — Net | 451 | 935 | (51.8) | % | |||||||
| Income Before Income Taxes | 4,869 | 5,767 | (15.6) | % | |||||||
| Income Tax Expense | 1,118 | 1,314 | (14.9) | % | |||||||
| Net Income | 3,751 | 4,453 | (15.8) | % | |||||||
| Less: Net Income Attributable to Noncontrolling Interest | (306) | (225) | (36.0) | % | |||||||
| Net Income Attributable to AT&T | $ | 3,445 | $ | 4,228 | (18.5) | % | |||||
| Less: Preferred Stock Dividends | (50) | (52) | 3.8 | % | |||||||
| Net Income Attributable to Common Stock | $ | 3,395 | $ | 4,176 | (18.7) | % | |||||
| Basic Earnings Per Share Attributable to Common Stock | $ | 0.47 | $ | 0.58 | (19.0) | % | |||||
| Weighted Average Common Shares Outstanding (000,000) | 7,192 | 7,168 | 0.3 | % | |||||||
| Diluted Earnings Per Share Attributable to Common Stock | $ | 0.47 | $ | 0.57 | (17.5) | % | |||||
| Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,193 | 7,474 | (3.8) | % | |||||||
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| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| Dollars in millions | |||||||||||
| Mar. 31, | Dec. 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Assets | (Unaudited) | ||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 3,520 | $ | 6,722 | |||||||
| Accounts receivable – net of related allowances for credit loss of $463 and $499 | 9,577 | 10,289 | |||||||||
| Inventories | 2,127 | 2,177 | |||||||||
| Prepaid and other current assets | 15,221 | 17,270 | |||||||||
| Total current assets | 30,445 | 36,458 | |||||||||
| Property, Plant and Equipment – Net | 127,851 | 128,489 | |||||||||
| Goodwill – Net | 67,854 | 67,854 | |||||||||
| Licenses – Net | 127,423 | 127,219 | |||||||||
| Other Intangible Assets – Net | 5,281 | 5,283 | |||||||||
| Investments in and Advances to Equity Affiliates | 891 | 1,251 | |||||||||
| Operating Lease Right-Of-Use Assets | 20,668 | 20,905 | |||||||||
| Other Assets | 19,015 | 19,601 | |||||||||
| Total Assets | $ | 399,428 | $ | 407,060 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Debt maturing within one year | $ | 7,060 | $ | 9,477 | |||||||
| Accounts payable and accrued liabilities | 31,973 | 35,852 | |||||||||
| Advanced billings and customer deposits | 3,713 | 3,778 | |||||||||
| Dividends payable | 2,088 | 2,020 | |||||||||
| Total current liabilities | 44,834 | 51,127 | |||||||||
| Long-Term Debt | 125,704 | 127,854 | |||||||||
| Deferred Credits and Other Noncurrent Liabilities | |||||||||||
| Deferred income taxes | 58,820 | 58,666 | |||||||||
| Postemployment benefit obligation | 8,743 | 8,734 | |||||||||
| Operating lease liabilities | 17,291 | 17,568 | |||||||||
| Other noncurrent liabilities | 23,441 | 23,696 | |||||||||
| Total deferred credits and other noncurrent liabilities | 108,295 | 108,664 | |||||||||
| Redeemable Noncontrolling Interest | 1,975 | 1,973 | |||||||||
| Stockholders’ Equity | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 7,621 | 7,621 | |||||||||
| Additional paid-in capital | 111,599 | 114,519 | |||||||||
| Retained (deficit) earnings | (1,570) | (5,015) | |||||||||
| Treasury stock | (15,277) | (16,128) | |||||||||
| Accumulated other comprehensive income | 2,167 | 2,300 | |||||||||
| Noncontrolling interest | 14,080 | 14,145 | |||||||||
| Total stockholders’ equity | 118,620 | 117,442 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 399,428 | $ | 407,060 | |||||||
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| AT&T Inc. | |||||||||||
| Financial Data | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | First Quarter | ||||||||||
| 2024 | 2023 | ||||||||||
| Operating Activities | |||||||||||
| Net income | $ | 3,751 | $ | 4,453 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 5,047 | 4,631 | |||||||||
| Provision for uncollectible accounts | 472 | 477 | |||||||||
| Deferred income tax expense | 479 | 529 | |||||||||
| Net (gain) loss on investments, net of impairments | 201 | (93) | |||||||||
| Pension and postretirement benefit expense (credit) | (471) | (670) | |||||||||
| Asset impairments and abandonments and restructuring | 159 | — | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | 512 | 620 | |||||||||
| Other current assets | 629 | 364 | |||||||||
| Accounts payable and other accrued liabilities | (3,497) | (3,409) | |||||||||
| Equipment installment receivables and related sales | 24 | (243) | |||||||||
| Deferred customer contract acquisition and fulfillment costs | 103 | (22) | |||||||||
| Postretirement claims and contributions | (54) | (89) | |||||||||
| Other - net | 192 | 130 | |||||||||
| Total adjustments | 3,796 | 2,225 | |||||||||
| Net Cash Provided by Operating Activities | 7,547 | 6,678 | |||||||||
| Investing Activities | |||||||||||
| Capital expenditures | (3,758) | (4,335) | |||||||||
| Acquisitions, net of cash acquired | (211) | (291) | |||||||||
| Dispositions | 8 | 15 | |||||||||
| Distributions from DIRECTV in excess of cumulative equity in earnings | 194 | 774 | |||||||||
| (Purchases), sales and settlements of securities and investments - net | 1,079 | 19 | |||||||||
| Other - net | (273) | — | |||||||||
| Net Cash Used in Investing Activities | (2,961) | (3,818) | |||||||||
| Financing Activities | |||||||||||
| Net change in short-term borrowings with original maturities of three months or less | 1,933 | (536) | |||||||||
| Issuance of other short-term borrowings | 491 | 3,627 | |||||||||
| Repayment of other short-term borrowings | (1,996) | — | |||||||||
| Issuance of long-term debt | — | 3,366 | |||||||||
| Repayment of long-term debt | (4,685) | (5,945) | |||||||||
| Repayment of note payable to DIRECTV | — | (130) | |||||||||
| Payment of vendor financing | (841) | (2,113) | |||||||||
| Purchase of treasury stock | (157) | (188) | |||||||||
| Issuance of treasury stock | — | 3 | |||||||||
| Dividends paid | (2,034) | (2,014) | |||||||||
| Other - net | (526) | 219 | |||||||||
| Net Cash Used in Financing Activities | (7,815) | (3,711) | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (3,229) | (851) | |||||||||
| Cash and cash equivalents and restricted cash beginning of year | 6,833 | 3,793 | |||||||||
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | 3,604 | $ | 2,942 | |||||||
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| AT&T Inc. | |||||||||||
| Consolidated Supplementary Data | |||||||||||
| Supplementary Financial Data | |||||||||||
| Dollars in millions except per share amounts | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Capital expenditures | |||||||||||
| Purchase of property and equipment | $ | 3,721 | $ | 4,291 | (13.3) | % | |||||
| Interest during construction | 37 | 44 | (15.9) | % | |||||||
| Total Capital Expenditures | $ | 3,758 | $ | 4,335 | (13.3) | % | |||||
| Acquisitions, net of cash acquired | |||||||||||
| Business acquisitions | $ | — | $ | — | — | % | |||||
| Spectrum acquisitions | 145 | 63 | — | % | |||||||
| Interest during construction - spectrum | 66 | 228 | (71.1) | % | |||||||
| Total Acquisitions | $ | 211 | $ | 291 | (27.5) | % | |||||
| Cash paid for interest | $ | 2,077 | $ | 1,971 | 5.4 | % | |||||
| Cash paid for income taxes, net of (refunds) | $ | (9) | $ | 10 | — | % | |||||
| Dividends Declared per Common Share | $ | 0.2775 | $ | 0.2775 | — | % | |||||
| End of Period Common Shares Outstanding (000,000) | 7,170 | 7,149 | 0.3 | % | |||||||
| Debt Ratio | 52.4 | % | 55.9 | % | (350) | BP | |||||
| Total Employees | 148,290 | 157,790 | (6.0) | % | |||||||
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COMMUNICATIONS SEGMENT
The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline and Consumer Wireline.
| Segment Results | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Segment Operating Revenues | |||||||||||
| Mobility | $ | 20,594 | $ | 20,582 | 0.1 | % | |||||
| Business Wireline | 4,913 | 5,331 | (7.8) | % | |||||||
| Consumer Wireline | 3,350 | 3,239 | 3.4 | % | |||||||
| Total Segment Operating Revenues | 28,857 | 29,152 | (1.0) | % | |||||||
| Segment Operating Income | |||||||||||
| Mobility | 6,468 | 6,271 | 3.1 | % | |||||||
| Business Wireline | 64 | 378 | (83.1) | % | |||||||
| Consumer Wireline | 213 | 94 | — | % | |||||||
| Total Segment Operating Income | $ | 6,745 | $ | 6,743 | — | % | |||||
| Supplementary Operating Data | |||||||||||
| Subscribers and connections in thousands | |||||||||||
| Unaudited | March 31, | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Broadband Connections | |||||||||||
| Broadband | 15,143 | 15,061 | 0.5 | % | |||||||
| DSL | 191 | 284 | (32.7) | % | |||||||
| Total Broadband Connections | 15,334 | 15,345 | (0.1) | % | |||||||
| Voice Connections | |||||||||||
| Retail Consumer Switched Access Lines | 3,934 | 4,938 | (20.3) | % | |||||||
Consumer VoIP Connections | 2,467 | 2,835 | (13.0) | % | |||||||
| Total Retail Consumer Voice Connections | 6,401 | 7,773 | (17.7) | % | |||||||
| First Quarter | Percent | ||||||||||
| 2024 | 2023 | Change | |||||||||
| Broadband Net Additions | |||||||||||
| Broadband | 65 | (14) | — | % | |||||||
| DSL | (19) | (27) | 29.6 | % | |||||||
| Total Broadband Net Additions | 46 | (41) | — | % | |||||||
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Mobility
Mobility provides nationwide wireless service and equipment.
| Mobility Results | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Operating Revenues | |||||||||||
| Service | $ | 15,994 | $ | 15,483 | 3.3 | % | |||||
| Equipment | 4,600 | 5,099 | (9.8) | % | |||||||
| Total Operating Revenues | 20,594 | 20,582 | 0.1 | % | |||||||
| Operating Expenses | |||||||||||
| Operations and support | 11,639 | 12,213 | (4.7) | % | |||||||
| Depreciation and amortization | 2,487 | 2,098 | 18.5 | % | |||||||
| Total Operating Expenses | 14,126 | 14,311 | (1.3) | % | |||||||
| Operating Income | $ | 6,468 | $ | 6,271 | 3.1 | % | |||||
| Operating Income Margin | 31.4 | % | 30.5 | % | 90 | BP | |||||
| Supplementary Operating Data | |||||||||||
| Subscribers and connections in thousands | |||||||||||
| Unaudited | March 31, | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Mobility Subscribers | |||||||||||
| Postpaid | 87,450 | 85,421 | 2.4 | % | |||||||
| Postpaid phone | 71,558 | 70,049 | 2.2 | % | |||||||
| Prepaid | 19,211 | 19,200 | 0.1 | % | |||||||
| Reseller | 7,852 | 6,192 | 26.8 | % | |||||||
Total Mobility Subscribers1 | 114,513 | 110,813 | 3.3 | % | |||||||
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems. | |||||||||||
| First Quarter | Percent | ||||||||||
| 2024 | 2023 | Change | |||||||||
| Mobility Net Additions | |||||||||||
| Postpaid Phone Net Additions | 349 | 424 | (17.7) | % | |||||||
| Total Phone Net Additions | 350 | 464 | (24.6) | % | |||||||
| Postpaid | 389 | 542 | (28.2) | % | |||||||
| Prepaid | 1 | 40 | (97.5) | % | |||||||
| Reseller | 351 | 108 | — | % | |||||||
Total Mobility Net Additions1 | 741 | 690 | 7.4 | % | |||||||
| Postpaid Churn | 0.89 | % | 0.99 | % | (10) BP | ||||||
| Postpaid Phone-Only Churn | 0.72 | % | 0.81 | % | (9) BP | ||||||
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period. | |||||||||||
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Business Wireline
Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as our fixed wireless access product and traditional voice and data services and related equipment to business customers.
| Business Wireline Results | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Operating Revenues | |||||||||||
| Service | $ | 4,700 | $ | 5,200 | (9.6) | % | |||||
| Equipment | 213 | 131 | 62.6 | % | |||||||
| Total Operating Revenues | 4,913 | 5,331 | (7.8) | % | |||||||
| Operating Expenses | |||||||||||
| Operations and support | 3,487 | 3,623 | (3.8) | % | |||||||
| Depreciation and amortization | 1,362 | 1,330 | 2.4 | % | |||||||
| Total Operating Expenses | 4,849 | 4,953 | (2.1) | % | |||||||
| Operating Income | $ | 64 | $ | 378 | (83.1) | % | |||||
| Operating Income Margin | 1.3 | % | 7.1 | % | (580) | BP | |||||
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Consumer Wireline
Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our fixed wireless access product that provides home internet services. Consumer Wireline also provides legacy telephony voice communication services.
| Consumer Wireline Results | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Operating Revenues | |||||||||||
| Broadband | $ | 2,722 | $ | 2,527 | 7.7 | % | |||||
| Legacy voice and data services | 342 | 396 | (13.6) | % | |||||||
| Other service and equipment | 286 | 316 | (9.5) | % | |||||||
| Total Operating Revenues | 3,350 | 3,239 | 3.4 | % | |||||||
| Operating Expenses | |||||||||||
| Operations and support | 2,256 | 2,284 | (1.2) | % | |||||||
| Depreciation and amortization | 881 | 861 | 2.3 | % | |||||||
| Total Operating Expenses | 3,137 | 3,145 | (0.3) | % | |||||||
| Operating Income | $ | 213 | $ | 94 | — | % | |||||
| Operating Income Margin | 6.4 | % | 2.9 | % | 350 | BP | |||||
| Supplementary Operating Data | |||||||||||
| Subscribers and connections in thousands | |||||||||||
| Unaudited | March 31, | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Broadband Connections | |||||||||||
| Total Broadband and DSL Connections | 13,930 | 13,949 | (0.1) | % | |||||||
Broadband1 | 13,784 | 13,730 | 0.4 | % | |||||||
| Fiber Broadband Connections | 8,559 | 7,487 | 14.3 | % | |||||||
| Voice Connections | |||||||||||
| Retail Consumer Switched Access Lines | 1,553 | 1,921 | (19.2) | % | |||||||
| Consumer VoIP Connections | 1,869 | 2,212 | (15.5) | % | |||||||
| Total Retail Consumer Voice Connections | 3,422 | 4,133 | (17.2) | % | |||||||
1 Includes AT&T Internet Air | |||||||||||
| First Quarter | Percent | ||||||||||
| 2024 | 2023 | Change | |||||||||
| Broadband Net Additions | |||||||||||
| Total Broadband and DSL Net Additions | 40 | (42) | — | % | |||||||
Broadband Net Additions1 | 55 | (23) | — | % | |||||||
| Fiber Broadband Net Additions | 252 | 272 | (7.4) | % | |||||||
1 Includes AT&T Internet Air | |||||||||||
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LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
| Segment Results | |||||||||||
| Dollars in millions | |||||||||||
| Unaudited | First Quarter | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Operating Revenues | |||||||||||
| Wireless service | $ | 690 | $ | 591 | 16.8 | % | |||||
| Wireless equipment | 373 | 292 | 27.7 | % | |||||||
| Total Segment Operating Revenues | 1,063 | 883 | 20.4 | % | |||||||
| Operating Expenses | |||||||||||
| Operations and support | 883 | 738 | 19.6 | % | |||||||
| Depreciation and amortization | 177 | 175 | 1.1 | % | |||||||
| Total Segment Operating Expenses | 1,060 | 913 | 16.1 | % | |||||||
| Operating Income (Loss) | $ | 3 | $ | (30) | — | % | |||||
| Operating Income Margin | 0.3 | % | (3.4) | % | 370 | BP | |||||
| Supplementary Operating Data | |||||||||||
| Subscribers and connections in thousands | |||||||||||
| Unaudited | March 31, | Percent | |||||||||
| 2024 | 2023 | Change | |||||||||
| Mexico Wireless Subscribers | |||||||||||
| Postpaid | 5,352 | 4,973 | 7.6 | % | |||||||
| Prepaid | 16,742 | 16,146 | 3.7 | % | |||||||
| Reseller | 365 | 494 | (26.1) | % | |||||||
| Total Mexico Wireless Subscribers | 22,459 | 21,613 | 3.9 | % | |||||||
| First Quarter | Percent | ||||||||||
| 2024 | 2023 | Change | |||||||||
| Mexico Wireless Net Additions | |||||||||||
| Postpaid | 116 | 49 | — | % | |||||||
| Prepaid | 79 | (58) | — | % | |||||||
| Reseller | (52) | 19 | — | % | |||||||
| Total Mexico Wireless Net Additions | 143 | 10 | — | % | |||||||
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SUPPLEMENTAL SEGMENT RECONCILIATION
| Three Months Ended | |||||||||||||||||
| Dollars in millions | |||||||||||||||||
| Unaudited | |||||||||||||||||
| March 31, 2024 | |||||||||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
| Communications | |||||||||||||||||
| Mobility | $ | 20,594 | $ | 11,639 | $ | 8,955 | $ | 2,487 | $ | 6,468 | |||||||
| Business Wireline | 4,913 | 3,487 | 1,426 | 1,362 | 64 | ||||||||||||
| Consumer Wireline | 3,350 | 2,256 | 1,094 | 881 | 213 | ||||||||||||
| Total Communications | 28,857 | 17,382 | 11,475 | 4,730 | 6,745 | ||||||||||||
| Latin America - Mexico | 1,063 | 883 | 180 | 177 | 3 | ||||||||||||
| Segment Total | 29,920 | 18,265 | 11,655 | 4,907 | 6,748 | ||||||||||||
| Corporate and Other | |||||||||||||||||
| Corporate: | |||||||||||||||||
| DTV-related retained costs | — | 134 | (134) | 120 | (254) | ||||||||||||
| Parent administration support | — | 392 | (392) | 1 | (393) | ||||||||||||
| Securitization fees | 26 | 165 | (139) | — | (139) | ||||||||||||
| Value portfolio | 82 | 26 | 56 | 4 | 52 | ||||||||||||
| Total Corporate | 108 | 717 | (609) | 125 | (734) | ||||||||||||
| Certain significant items | — | 152 | (152) | 15 | (167) | ||||||||||||
| Total Corporate and Other | 108 | 869 | (761) | 140 | (901) | ||||||||||||
| AT&T Inc. | $ | 30,028 | $ | 19,134 | $ | 10,894 | $ | 5,047 | $ | 5,847 | |||||||
| March 31, 2023 | |||||||||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
| Communications | |||||||||||||||||
| Mobility | $ | 20,582 | $ | 12,213 | $ | 8,369 | $ | 2,098 | $ | 6,271 | |||||||
| Business Wireline | 5,331 | 3,623 | 1,708 | 1,330 | 378 | ||||||||||||
| Consumer Wireline | 3,239 | 2,284 | 955 | 861 | 94 | ||||||||||||
| Total Communications | 29,152 | 18,120 | 11,032 | 4,289 | 6,743 | ||||||||||||
| Latin America - Mexico | 883 | 738 | 145 | 175 | (30) | ||||||||||||
| Segment Total | 30,035 | 18,858 | 11,177 | 4,464 | 6,713 | ||||||||||||
| Corporate and Other | |||||||||||||||||
| Corporate: | |||||||||||||||||
| DTV-related retained costs | — | 169 | (169) | 144 | (313) | ||||||||||||
| Parent administration support | (9) | 374 | (383) | 1 | (384) | ||||||||||||
| Securitization fees | 19 | 121 | (102) | — | (102) | ||||||||||||
| Value portfolio | 94 | 28 | 66 | 5 | 61 | ||||||||||||
| Total Corporate | 104 | 692 | (588) | 150 | (738) | ||||||||||||
| Certain significant items | — | (44) | 44 | 17 | 27 | ||||||||||||
| Total Corporate and Other | 104 | 648 | (544) | 167 | (711) | ||||||||||||
| AT&T Inc. | $ | 30,139 | $ | 19,506 | $ | 10,633 | $ | 4,631 | $ | 6,002 | |||||||
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