AT&T Smashes Q1 Performance Backed By Robust Postpaid Phone, Fiber Broadband Net Adds

AT&T Inc T reported first-quarter FY22 operating revenues of $38.1 billion, down 13.3% year-over-year, beating the consensus of $29.5 billion. WarnerMedia revenue growth partially offset the business divestment and Business Wireline revenue decline. Adjusted EPS of $0.77 beat the consensus of $0.59.

The results reflect continuing customer growth in wireless, fiber, and HBO Max. 

In the Mobility segment, AT&T clocked 691 thousand postpaid phone net adds, 965 thousand postpaid net adds, and 113 thousand prepaid phone net adds. 

In Mobility, it saw a Postpaid phone churn of 0.79%, which increased from 0.76% last year. The Consumer Wireline segment had 289 thousand AT&T Fiber net adds.

In the WarnerMedia segment, total revenues grew 2.5% Y/Y to $8.7 billion. Total global HBO Max and HBO subscribers grew by 12.8 million Y/Y to 76.8 million, and Domestic HBO Max and HBO subscribers increased by 4.4 million Y/Y to 48.6 million, with a Domestic ARPU of $11.24.

AT&T's adjusted EBITDA of $11.6 billion was down 14% Y/Y. The company generated $5.7 billion in operating cash flow and a free cash flow of $0.7 billion. It spent $4.7 billion on Capex.

Operating Income: Operating income declined 26.4% Y/Y to $5.6 billion. Mobility segment operating income was down 3.2% Y/Y to $5.9 billion with a margin of 29.2%. Business Wireline segment operating margin was 15.2%.

CEO John Stankey said, "We had our best first quarter for postpaid phone net adds in more than a decade, and our fiber broadband net adds remain consistently strong." 

Price Action: T shares traded higher by 1.39% at $19.70 in the premarket on the last check Thursday.

Photo by Tdorante10 via Wikimedia