AT&T Inc (NYSE:T) reported fiscal fourth-quarter 2023 operating revenues of $32.02 billion, up 2.2% year-over-year, beating the consensus of $31.48 billion.
Adjusted EPS of $0.54 missed the consensus of $0.56.
The results reflected higher Mobility, Mexico, and Consumer Wireline revenues, partly offset by lower Business Wireline revenues.
In the Mobility segment, AT&T clocked 5.9 million wireless net adds, including 526 thousand postpaid phone net adds. Verizon Communications Inc (NYSE:VZ) clocked 449 thousand postpaid phone net adds.
The Mobility segment saw a Postpaid churn of 1.01%, consistent with the year-ago quarter. The Consumer Wireline segment had 273 thousand AT&T Fiber net adds.
AT&T's adjusted EBITDA of $10.56 billion was up from $10.23 billion a year ago. The company generated $6.4 billion in free cash flow. It spent $4.6 billion on Capex.
Prepaid churn was 2.97% versus 2.87% in the year-ago quarter. Postpaid phone-only ARPU was $56.23, up 1.4% versus the year-ago quarter, due to pricing actions and a mix shift to higher-priced unlimited plans.
Operating Income: Operating income was $5.27 billion, versus a loss of $(21.09) billion a year ago.
Mobility segment operating income was up 6.2% Y/Y to $6.2 billion with a margin of 27.7% compared to 27.2% in the year-ago quarter. The Business Wireline segment operating margin was 3.3% compared to 9.6% in the year-ago quarter. The Consumer Wireline segment operating margin was 6.8% compared to 5.8% in the year-ago quarter.
FY24 Outlook: AT&T expects Wireless service revenue growth in the 3% range, Broadband revenue growth of 7%+, and adjusted EPS of $2.15 – $2.25 versus $2.46 consensus.
It projects full-year adjusted EBITDA growth in the 3% range. The company now expects a full-year free cash flow of $17 billion-$18 billion.
In 2025, the company expects to deliver adjusted EPS growth.
Price Action: T shares traded lower by 2.73% at $16.72 in the premarket on the last check Wednesday.
Photo by Mike Mozart via Flickr
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