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AT&T (T)

Filed: 24 Jul 19, 6:16am

AT&T Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

Dollars in millions except per share amounts

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Service

$

41,023

$

34,906

 

17.5

%

 

$

81,707

$

68,552

 

19.2

%

  Equipment

 

3,934

 

4,080

 

(3.6)

%

 

 

8,077

 

8,472

 

(4.7)

%

    Total Operating Revenues

 

44,957

 

38,986

 

15.3

%

 

 

89,784

 

77,024

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Equipment

 

4,061

 

4,377

 

(7.2)

%

 

 

8,563

 

9,225

 

(7.2)

%

    Broadcast, programming and operations

 

7,730

 

5,449

 

41.9

%

 

 

15,382

 

10,615

 

44.9

%

    Other cost of revenues (exclusive of depreciation

          and amortization shown separately below)

 

8,721

 

7,632

 

14.3

%

 

 

17,306

 

15,564

 

11.2

%

   Selling, general and administrative

 

9,844

 

8,684

 

13.4

%

 

 

19,493

 

16,581

 

17.6

%

   Depreciation and amortization

 

7,101

 

6,378

 

11.3

%

 

 

14,307

 

12,372

 

15.6

%

    Total Operating Expenses

 

37,457

 

32,520

 

15.2

%

 

 

75,051

 

64,357

 

16.6

%

Operating Income

 

7,500

 

6,466

 

16.0

%

 

 

14,733

 

12,667

 

16.3

%

Interest Expense

 

2,149

 

2,023

 

6.2

%

 

 

4,290

 

3,794

 

13.1

%

Equity in Net Income (Loss) of Affiliates

 

40

 

(16)

 

-

%

 

 

33

 

(7)

 

-

%

Other Income (Expense) - Net

 

(318)

 

2,353

 

-

%

 

 

(32)

 

4,055

 

-

%

Income Before Income Taxes

 

5,073

 

6,780

 

(25.2)

%

 

 

10,444

 

12,921

 

(19.2)

%

Income Tax Expense

 

1,099

 

1,532

 

(28.3)

%

 

 

2,122

 

2,914

 

(27.2)

%

Net Income

 

3,974

 

5,248

 

(24.3)

%

 

 

8,322

 

10,007

 

(16.8)

%

 Less: Net Income Attributable to

    Noncontrolling Interest

 

(261)

 

(116)

 

-

%

 

 

(513)

 

(213)

 

-

%

Net Income Attributable to AT&T

$

3,713

$

5,132

 

(27.7)

%

 

$

7,809

$

9,794

 

(20.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share Attributable to AT&T

$

0.51

$

0.81

 

(37.0)

%

 

$

1.06

$

1.56

 

(32.1)

%

Weighted Average Common

    Shares Outstanding (000,000)

 

7,323

 

6,351

 

15.3

%

 

 

7,318

 

6,257

 

17.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share Attributable to AT&T

$

0.51

$

0.81

 

(37.0)

%

 

$

1.06

$

1.56

 

(32.1)

%

Weighted Average Common 

    Shares Outstanding with Dilution (000,000)

 

7,353

 

6,374

 

15.4

%

 

 

7,347

 

6,277

 

17.0

%




AT&T Inc.

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

Dollars in millions

 

Unaudited

 

Jun. 30,

 

 

Dec. 31,

 

 

 

2019

 

 

2018

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

8,423

 

$

5,204

Accounts receivable - net of allowances for doubtful accounts of $1,086 and $907

 

22,381

 

 

26,472

Prepaid expenses

 

1,441

 

 

2,047

Other current assets

 

14,973

 

 

17,704

Total current assets

 

47,218

 

 

51,427

Noncurrent Inventories and Theatrical Film and Television Production Costs

 

10,685

 

 

7,713

Property, Plant and Equipment – Net

 

132,074

 

 

131,473

Goodwill

 

146,662

 

 

146,370

Licenses – Net

 

97,125

 

 

96,144

Trademarks and Trade Names – Net

 

24,088

 

 

24,345

Distribution Networks – Net

 

16,262

 

 

17,069

Other Intangible Assets – Net

 

23,284

 

 

26,269

Investments in and Advances to Equity Affiliates

 

4,133

 

 

6,245

Operating Lease Right-of-Use Assets

 

22,650

 

 

-

Other Assets

 

22,733

 

 

24,809

Total Assets

$

546,914

 

$

531,864

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Debt maturing within one year

$

12,625

 

$

10,255

Accounts payable and accrued liabilities

 

42,082

 

 

43,184

Advanced billings and customer deposits

 

5,734

 

 

5,948

Accrued taxes

 

2,062

 

 

1,179

Dividends payable

 

3,726

 

 

3,854

Total current liabilities

 

66,229

 

 

64,420

Long-Term Debt

 

157,937

 

 

166,250

Deferred Credits and Other Noncurrent Liabilities

 

 

 

 

 

Deferred income taxes

 

58,713

 

 

57,859

Postemployment benefit obligation

 

21,210

 

 

19,218

Operating lease liabilities

 

20,568

 

 

-

Other noncurrent liabilities

 

28,176

 

 

30,233

Total deferred credits and other noncurrent liabilities

 

128,667

 

 

107,310

Stockholders’ Equity

 

 

 

 

 

Common stock

 

7,621

 

 

7,621

Additional paid-in capital

 

125,109

 

 

125,525

Retained earnings

 

59,389

 

 

58,753

Treasury stock

 

(11,151)

 

 

(12,059)

Accumulated other comprehensive income

 

3,289

 

 

4,249

Noncontrolling interest

 

9,824

 

 

9,795

Total stockholders’ equity

 

194,081

 

 

193,884

Total Liabilities and Stockholders' Equity

$

546,914

 

$

531,864

 

 

 

 

 

 

 



AT&T Inc.

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

Dollars in millions

 

Unaudited

Six-Month Period

 

 

 

2019

 

 

2018

Operating Activities

 

 

 

 

 

Net income

$

8,322

 

$

10,007

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

14,307

 

 

12,372

 

Amortization of film and television costs

 

5,199

 

 

168

 

Undistributed earnings from investments in equity affiliates

 

76

 

 

235

 

Provision for uncollectible accounts

 

1,216

 

 

808

 

Deferred income tax expense (benefit)

 

1,080

 

 

2,285

 

Net (gain) loss from investments, net of impairments

 

(905)

 

 

(29)

 

Actuarial (gain) loss on pension and postretirement benefits

 

2,131

 

 

(2,726)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

3,540

 

 

233

 

Other current assets, inventories and theatrical film and television production costs

 

(5,422)

 

 

1,039

 

Accounts payable and other accrued liabilities

 

(3,056)

 

 

(3,890)

 

Equipment installment receivables and related sales

 

1,144

 

 

490

 

Deferred customer contract acquisition and fulfillment costs

 

(614)

 

 

(1,725)

Retirement benefit funding

 

(1,232)

 

 

(933)

Other - net

 

(450)

 

 

842

Total adjustments

 

17,014

 

 

9,169

Net Cash Provided by Operating Activities

 

25,336

 

 

19,176

 

 

 

 

 

Investing Activities

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

Purchase of property and equipment

 

(10,542)

 

 

(10,959)

 

Interest during construction

 

(112)

 

 

(267)

Acquisitions, net of cash acquired

 

(320)

 

 

(40,715)

Dispositions

 

3,593

 

 

59

(Purchases), sales and settlement of securities and investments, net

 

396

 

 

(218)

Advances to and investments in equity affiliates, net

 

(314)

 

 

(1,035)

Cash collections of deferred purchase price

 

-

 

 

500

Net Cash Used in Investing Activities

 

(7,299)

 

 

(52,635)

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

Net change in short-term borrowings with original maturities of three months or less

 

119

 

 

2,227

Issuance of other short-term borrowings

 

3,067

 

 

4,839

Repayment of other short-term borrowings

 

(3,148)

 

 

-

Issuance of long-term debt

 

10,030

 

 

26,478

Repayment of long-term debt

 

(16,124)

 

 

(29,447)

Purchase of treasury stock

 

(240)

 

 

(564)

Issuance of treasury stock

 

455

 

 

12

Dividends paid

 

(7,436)

 

 

(6,144)

Other

 

(1,506)

 

 

(1,121)

Net Cash Used in Financing Activities

 

(14,783)

 

 

(3,720)

Net increase (decrease) in cash and cash equivalents and restricted cash

 

3,254

 

 

(37,179)

Cash and cash equivalents and restricted cash beginning of year

 

5,400

 

 

50,932

Cash and Cash Equivalents and Restricted Cash End of Period

$

8,654

 

$

13,753

 

 

 

 

 

 

 



AT&T Inc.

Consolidated Supplementary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Financial Data

Dollars in millions except per share amounts

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

$

5,421

$

5,002

 

8.4

%

 

$

10,542

$

10,959

 

(3.8)

%

 

Interest during construction

 

51

 

106

 

(51.9)

%

 

 

112

 

267

 

(58.1)

%

Total Capital Expenditures

$

5,472

$

5,108

 

7.1

%

 

$

10,654

$

11,226

 

(5.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared per Share

$

0.51

$

0.50

 

2.0

%

 

$

1.02

$

1.00

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period Common Shares Outstanding (000,000)

 

 

 

 

 

 

 

 

 

7,305

 

7,261

 

0.6

%

Debt Ratio

 

 

 

 

 

 

 

 

 

46.8

%

50.8

%

(400)

BP

Total Employees

 

 

 

 

 

 

 

 

 

257,790

 

273,210

 

(5.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Wireless Subscribers

 

 

 

 

 

��

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

159,665

 

146,889

 

8.7

%

 

Mexico

 

 

 

 

 

 

 

 

 

18,021

 

16,398

 

9.9

%

Total Wireless Subscribers

 

 

 

 

 

 

 

 

 

177,686

 

163,287

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

22,945

 

25,473

 

(9.9)

%

 

Latin America

 

 

 

 

 

 

 

 

 

13,473

 

13,713

 

(1.8)

%

Total Video Connections

 

 

 

 

 

 

 

 

 

36,418

 

39,186

 

(7.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

 

 

 

 

 

 

 

 

14,860

 

14,709

 

1.0

%

 

DSL

 

 

 

 

 

 

 

 

 

838

 

1,063

 

(21.2)

%

Total Broadband Connections

 

 

 

 

 

 

 

 

 

15,698

 

15,772

 

(0.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Access Lines

 

 

 

 

 

 

 

 

 

9,207

 

10,832

 

(15.0)

%

 

U-verse  VoIP Connections

 

 

 

 

 

 

 

 

 

4,766

 

5,449

 

(12.5)

%

Total Retail Voice Connections

 

 

 

 

 

 

 

 

 

13,973

 

16,281

 

(14.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Wireless Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

3,932

 

3,064

 

28.3

%

 

 

6,659

 

5,694

 

16.9

%

 

Mexico

 

299

 

756

 

(60.4)

%

 

 

392

 

1,299

 

(69.8)

%

Total Wireless Net Additions

 

4,231

 

3,820

 

10.8

%

 

 

7,051

 

6,993

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

(946)

 

79

 

-

%

 

 

(1,572)

 

203

 

-

%

 

Latin America

 

(111)

 

140

 

-

%

 

 

(143)

 

125

 

-

%

Total Video Net Additions

 

(1,057)

 

219

 

-

%

 

 

(1,715)

 

328

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

8

 

72

 

(88.9)

%

 

 

108

 

222

 

(51.4)

%

 

DSL

 

(47)

 

(75)

 

37.3

%

 

 

(111)

 

(169)

 

34.3

%

Total Broadband Net Additions

 

(39)

 

(3)

 

-

%

 

 

(3)

 

53

 

-

%


COMMUNICATIONS SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Communications segment provides wireless and wireline telecom, video and broadband services to consumers located in the U.S. or in U.S. territories and businesses globally. The Communications segment contains three reporting units: Mobility, Entertainment Group, and Business Wireline.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility

 $  

17,512

 $  

17,282

 

1.3

 %  

 

 $  

35,079

 $  

34,637

 

1.3

 %  

 

Entertainment Group

 

11,368

 

11,478

 

(1.0)

%

 

 

22,696

 

22,909

 

(0.9)

%

 

Business Wireline

 

6,628

 

6,650

 

(0.3)

 %  

 

 

13,126

 

13,397

 

(2.0)

 %  

    Total Segment Operating Revenues

 

35,508

 

35,410

 

0.3

%

 

 

70,901

 

70,943

 

(0.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility

 

5,833

 

5,506

 

5.9

 %  

 

 

11,184

 

10,664

 

4.9

 %  

 

Entertainment Group

 

1,514

 

1,475

 

2.6

%

 

 

2,992

 

2,784

 

7.5

%

 

Business Wireline

 

1,390

 

1,433

 

(3.0)

 %  

 

 

2,613

 

2,993

 

(12.7)

 %  

    Total Segment Operating Contribution

$

8,737

$

8,414

 

3.8

%

 

$

16,789

$

16,441

 

2.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Mobility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility provides nationwide wireless service and equipment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service

 $  

14,006

 $  

13,682

 

2.4

 %  

 

 $  

27,798

 $  

27,085

 

2.6

 %  

Equipment

 

3,506

 

3,600

 

(2.6)

%

 

 

7,281

 

7,552

 

(3.6)

%

    Total Operating Revenues

 

17,512

 

17,282

 

1.3

 %  

 

 

35,079

 

34,637

 

1.3

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

9,654

 

9,663

 

(0.1)

%

 

 

19,835

 

19,765

 

0.4

%

Depreciation and amortization

 

2,025

 

2,113

 

(4.2)

 %  

 

 

4,060

 

4,208

 

(3.5)

 %  

    Total Operating Expenses

 

11,679

 

11,776

 

(0.8)

%

 

 

23,895

 

23,973

 

(0.3)

%

Operating Income

 

5,833

 

5,506

 

5.9

 %  

 

 

11,184

 

10,664

 

4.9

 %  

Equity in Net Income of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

Operating  Contribution

$

5,833

$

5,506

 

5.9

 %  

 

$

11,184

$

10,664

 

4.9

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

33.3

%

31.9

%

140

 BP  

 

 

31.9

%

30.8

%

110

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

Unaudited

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Mobility Subscribers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Postpaid smartphones

 

 

 

 

 

 

 

 

 

60,737

 

60,183

 

0.9

%

   Postpaid feature phones and data-centric devices

 

 

 

 

 

 

 

 

 

 

15,545

 

17,189

 

(9.6)

%

Postpaid

 

 

 

 

 

 

 

 

 

76,282

 

77,372

 

(1.4)

%

Prepaid

 

 

 

 

 

 

 

 

 

17,602

 

16,217

 

8.5

%

Reseller

 

 

 

 

 

 

 

 

 

7,392

 

8,582

 

(13.9)

%

Connected Devices

 

 

 

 

 

 

 

 

 

58,389

 

44,718

 

30.6

%

Total Mobility Subscribers

 

 

 

 

 

 

 

 

 

159,665

 

146,889

 

8.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Phone Subscribers

 

 

 

 

 

 

 

 

 

63,415

 

63,543

 

(0.2)

%

Total Phone Subscribers

 

 

 

 

 

 

 

 

 

80,003

 

78,919

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

 

 

 

 

2019

 

2018

 

Change

Mobility Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

(154)

 

73

 

-

%

 

 

(358)

 

122

 

-

%

Prepaid

 

341

 

453

 

(24.7)

%

 

 

437

 

694

 

(37.0)

%

Reseller

 

(214)

 

(444)

 

51.8

%

 

 

(467)

 

(832)

 

43.9

%

Connected Devices

 

3,959

 

2,982

 

32.8

%

 

 

7,047

 

5,710

 

23.4

%

Total Mobility Net Additions

 

3,932

 

3,064

 

28.3

%

 

 

6,659

 

5,694

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Phone Net Additions

 

72

 

51

 

41.2

%

 

 

152

 

(9)

 

-

%

Total Phone Net Additions

 

 355  

 

407

 

(12.8)

%

 

 

 520  

 

 539

 

(3.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Churn

 

1.08

%

1.02

%

6

BP

 

 

1.12

%

1.04

%

8

BP

Postpaid Phone-Only Churn

 

0.86

%

0.82

%

4

BP

 

 

0.89

%

0.83

%

6

BP



 

Entertainment Group

 

 

 

Entertainment Group provides video, including over-the-top (OTT) services, broadband and voice communication services

primarily to residential customers. This business unit also sells advertising on video distribution platforms.

 
 

 

 

Entertainment Group Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

 Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video entertainment

$

8,035

$

8,173

 

(1.7)

%

 

$

16,109

$

16,398

 

(1.8)

%

 

High-speed internet

 

2,109

 

1,981

 

6.5

%

 

 

4,179

 

3,859

 

8.3

%

 

Legacy voice and data services

 

658

 

772

 

(14.8)

%

 

 

1,341

 

1,578

 

(15.0)

%

 

Other service and equipment

 

566

 

552

 

2.5

%

 

 

1,067

 

1,074

 

(0.7)

%

 

Total Operating Revenues

 

11,368

 

11,478

 

(1.0)

%

 

 

22,696

 

22,909

 

(0.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

8,515

 

8,657

 

(1.6)

%

 

 

17,042

 

17,468

 

(2.4)

%

 

Depreciation and amortization

 

1,339

 

1,345

 

(0.4)

%

 

 

2,662

 

2,655

 

0.3

%

 

Total Operating Expenses

 

9,854

 

10,002

 

(1.5)

%

 

 

19,704

 

20,123

 

(2.1)

%

 

Operating Income

 

1,514

 

1,476

 

2.6

%

 

 

2,992

 

2,786

 

7.4

%

 

Equity in Net Income (Loss) of Affiliates

 

-

 

(1)

 

-

%

 

 

-

 

(2)

 

-

%

 

Operating Contribution

$

1,514

$

1,475

 

2.6

%

 

$

2,992

$

2,784

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

13.3

%

12.9

%

40

BP

 

 

13.2

%

12.2

%

100

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

 

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

 

Video Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium TV

 

 

 

 

 

 

 

 

 

21,581

 

23,640

 

(8.7)

%

 

DIRECTV NOW

 

 

 

 

 

 

 

 

 

1,340

 

1,809

 

(25.9)

%

 

Total Video Connections

 

 

 

 

 

 

 

 

 

22,921

 

25,449

 

(9.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

 

 

 

 

 

 

 

 

13,822

 

13,692

 

0.9

%

 

DSL

 

 

 

 

 

 

 

 

 

598

 

763

 

(21.6)

%

 

Total Broadband Connections

 

 

 

 

 

 

 

 

 

14,420

 

14,455

 

(0.2)

%

 

Fiber Broadband Connections (included in IP)

 

 

 

 

 

 

 

 

 

3,378

 

2,204

 

53.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Consumer Switched Access Lines

 

 

 

 

 

 

 

 

 

3,630

 

4,333

 

(16.2)

%

 

U-verse Consumer VoIP Connections

 

 

 

 

 

 

 

 

 

4,211

 

4,950

 

(14.9)

%

 

Total Retail Consumer Voice Connections

 

 

 

 

 

 

 

 

 

7,841

 

9,283

 

(15.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Video Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium TV1

 

(778)

 

(262)

 

-

%

 

 

(1,322)

 

(449)

 

-

%

 

DIRECTV NOW

 

(168)

 

342

 

-

%

 

 

(251)

 

654

 

-

%

 

Total Video Net Additions

 

(946)

 

80

 

-

%

 

 

(1,573)

 

205

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

-

 

76

 

-

%

 

 

93

 

230

 

(59.6)

%

 

DSL

 

(34)

 

(53)

 

35.8

%

 

 

(82)

 

(125)

 

34.4

%

 

Total Broadband Net Additions

 

(34)

 

23

 

-

%

 

 

11

 

105

 

(89.5)

%

 

Fiber Broadband Net Additions (included in IP)

 

318

 

249

 

27.7

%

 

 

615

 

475

 

29.5

%

 

1

Includes the impact of customers that migrated to DIRECTV NOW.

 

Business Wireline

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Wireline unit provides advanced IP-based services, as well as traditional data services to business customers. Revenues have been recast to conform to the current period's presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Wireline Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic and managed services

 $  

3,848

 $  

3,603

 

6.8

 %  

 

 $  

7,640

 $  

7,198

 

6.1

 %  

 

Legacy voice and data services

 

2,331

 

2,730

 

(14.6)

%

 

 

4,735

 

5,595

 

(15.4)

%

 

Other service and equipment

 

449

 

317

 

41.6

 %  

 

 

751

 

604

 

24.3

 %  

    Total Operating Revenues

 

6,628

 

6,650

 

(0.3)

%

 

 

13,126

 

13,397

 

(2.0)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

3,982

 

4,038

 

(1.4)

 %  

 

 

8,022

 

8,054

 

(0.4)

 %  

Depreciation and amortization

 

1,256

 

1,180

 

6.4

%

 

 

2,491

 

2,350

 

6.0

%

    Total Operating Expenses

 

5,238

 

5,218

 

0.4

 %  

 

 

10,513

 

10,404

 

1.0

 %  

Operating Income

 

1,390

 

1,432

 

(2.9)

%

 

 

2,613

 

2,993

 

(12.7)

%

Equity in Net Income of Affiliates

 

-

 

1

 

-

 %  

 

 

-

 

-

 

-

 %  

Operating Contribution

$

1,390

$

1,433

 

(3.0)

%

 

$

2,613

$

2,993

 

(12.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

21.0

%

21.5

%

(50)

BP

 

 

19.9

%

22.3

%

(240)

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers. Revenues have been recast to conform to the current period's presentation.

 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Solutions Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless service

 $  

2,022

 $  

1,829

 

10.6

 %  

 

 $  

3,935

 $  

3,620

 

8.7

 %  

 

 

Strategic and managed services

 

3,848

 

3,603

 

6.8

%

 

 

7,640

 

7,198

 

6.1

%

 

 

Legacy voice and data services

 

2,331

 

2,730

 

(14.6)

 %  

 

 

4,735

 

5,595

 

(15.4)

 %  

 

 

Other service and equipment

 

449

 

317

 

41.6

%

 

 

751

 

604

 

24.3

%

 

 

Wireless equipment

 

622

 

584

 

6.5

 %  

 

 

1,218

 

1,162

 

4.8

 %  

 

   Total Operating Revenues

 

9,272

 

9,063

 

2.3

%

 

 

18,279

 

18,179

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

5,539

 

5,616

 

(1.4)

 %  

 

 

11,179

 

11,210

 

(0.3)

 %  

 

Depreciation and amortization

 

1,561

 

1,487

 

5.0

%

 

 

3,102

 

2,945

 

5.3

%

 

   Total Operating Expenses

 

7,100

 

7,103

 

-

 %  

 

 

14,281

 

14,155

 

0.9

 %  

 

Operating Income

 

2,172

 

1,960

 

10.8

%

 

 

3,998

 

4,024

 

(0.6)

%

 

Equity in Net Income of Affiliates

 

-

 

1

 

-

 %  

 

 

-

 

-

 

-

 %  

 

Operating Contribution

$

2,172

$

1,961

 

10.8

%

 

$

3,998

$

4,024

 

(0.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

23.4

%

21.6

%

180

BP

 

 

21.9

%

22.1

%

(20)

BP

 



WARNERMEDIA SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally. Results from Turner, Home Box Office and Warner Bros. businesses are combined with AT&T's Regional Sports Network (RSN) and Otter Media Holdings in the WarnerMedia segment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription

 $  

3,536

 $  

687

 

-

 %  

 

 $  

6,905

 $  

785

 

-

 %  

 

Advertising

 

1,285

 

225

 

-

%

 

 

2,564

 

239

 

-

%

 

Content and other

 

3,529

 

481

 

-

 %  

 

 

7,260

 

481

 

-

 %  

    Total Operating Revenues

 

8,350

 

1,393

 

-

%

 

 

16,729

 

1,505

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

6,289

 

911

 

-

 %  

 

 

12,282

 

993

 

-

 %  

Depreciation and amortization

 

91

 

31

 

-

%

 

 

234

 

32

 

-

%

    Total Operating Expenses

 

6,380

 

942

 

-

 %  

 

 

12,516

 

1,025

 

-

 %  

Operating Income

 

1,970

 

451

 

-

%

 

 

4,213

 

480

 

-

%

Equity in Net Income (Loss) of Affiliates

 

55

 

(26)

 

-

 %  

 

 

122

 

(16)

 

-

 %  

Operating Contribution

$

2,025

$

425

 

-

%

 

$

4,335

$

464

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

23.6

%

32.4

%

(880)

BP

 

 

25.2

%

31.9

%

(670)

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LATIN AMERICA SEGMENT

 

The Latin America segment provides entertainment and wireless service outside of the U.S. Our international subsidiaries conduct business in their local currency and operating results are converted to U.S. dollars using official exchange rates. The Latin America segment contains two business units: Vrio and Mexico.

 

Segment Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

$

1,032

 $  

1,254

 

(17.7)

 %  

 

$

2,099

 $  

2,608

 

(19.5)

 %  

 

  Mexico

 

725

 

697

 

4.0

%

 

 

1,376

 

1,368

 

0.6

%

    Total Segment Operating Revenues

 

1,757

 

1,951

 

(9.9)

 %  

 

 

3,475

 

3,976

 

(12.6)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

(2)

 

67

 

-

%

 

 

30

 

215

 

(86.0)

%

 

  Mexico

 

(207)

 

(217)

 

4.6

 %  

 

 

(412)

 

(476)

 

13.4

 %  

    Total Segment Operating Contribution

$

(209)

$

(150)

 

(39.3)

%

 

$

(382)

$

(261)

 

(46.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Vrio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vrio provides entertainment services to customers utilizing satellite technology in Latin America and the Caribbean.

 

Vrio Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

$

1,032

$

1,254

 

(17.7)

 %  

 

$

2,099

$

2,608

 

(19.5)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

881

 

1,016

 

(13.3)

%

 

 

1,747

 

2,017

 

(13.4)

%

Depreciation and amortization

 

165

 

186

 

(11.3)

 %  

 

 

334

 

391

 

(14.6)

 %  

Total Operating Expenses

 

1,046

 

1,202

 

(13.0)

%

 

 

2,081

 

2,408

 

(13.6)

%

Operating Income

 

(14)

 

52

 

-

 %  

 

 

18

 

200

 

(91.0)

 %  

Equity in Net Income of Affiliates

 

12

 

15

 

(20.0)

%

 

 

12

 

15

 

(20.0)

%

Operating Contribution

$

(2)

$

67

 

-

 %  

 

$

30

$

215

 

(86.0)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

(1.4)

%

4.1

%

(550)

 BP  

 

 

0.9

%

7.7

%

(680)

 BP  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Vrio Video Subscribers1

 

 

 

 

 

 

 

 

 

13,473

 

13,713

 

-1.8

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Vrio Video Net Subscriber Additions

 

(111)

 

140

 

-

 %  

 

 

(143)

 

125

 

-

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

2019 excludes the impact of 222 subscriber disconnections resulting from conforming our video credit policy across the region,

 

which is reflected in beginning of period subscribers.

                 

Mexico

 

 Mexico provides wireless services and equipment to customers in Mexico.

 

Mexico Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

Wireless service

$

479

$

417

 

14.9

%

 

$

921

$

821

 

12.2

%

Wireless equipment

 

246

 

280

 

(12.1)

%

 

 

455

 

547

 

(16.8)

%

    Total Operating Revenues

 

725

 

697

 

4.0

 %  

 

 

1,376

 

1,368

 

0.6

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

813

 

787

 

3.3

%

 

 

1,538

 

1,590

 

(3.3)

%

Depreciation and amortization

 

119

 

127

 

(6.3)

 %  

 

 

250

 

254

 

(1.6)

 %  

    Total Operating Expenses

 

932

 

914

 

2.0

%

 

 

1,788

 

1,844

 

(3.0)

%

Operating Income (Loss)

 

(207)

 

(217)

 

4.6

 %  

 

 

(412)

 

(476)

 

13.4

 %  

Equity in Net Income of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

Operating Contribution

$

(207)

$

(217)

 

4.6

 %  

 

$

(412)

$

(476)

 

13.4

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

(28.6)

%

(31.1)

%

250

 BP  

 

 

(29.9)

%

(34.8)

%

490

 BP  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Mexico Wireless Subscribers1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

 

 

 

 

 

 

 

 

5,489

 

5,749

 

(4.5)

 %  

Prepaid

 

 

 

 

 

 

 

 

 

12,180

 

10,468

 

16.4

%

Reseller

 

 

 

 

 

 

 

 

 

352

 

181

 

94.5

 %  

Total Mexico Wireless Subscribers

 

 

 

 

 

 

 

 

 

18,021

 

16,398

 

9.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Mexico Wireless Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

(153)

 

142

 

-

 %  

 

 

(222)

 

251

 

-

 %  

Prepaid

 

401

 

611

 

(34.4)

%

 

 

515

 

1,070

 

(51.9)

%

Reseller

 

51

 

3

 

-

 %  

 

 

99

 

(22)

 

-

 %  

Total Mexico Wireless Net Subscriber Additions

 

299

 

756

 

(60.4)

%

 

 

392

 

1,299

 

(69.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

2019 excludes the impact of 692 subscriber disconnections resulting from the churn of customers related to sales by certain

 

third-party distributors and the sunset of 2G services in Mexico, which are reflected in beginning of period subscribers.

                 


XANDR SEGMENT

 

 

 

The Xandr segment provides advertising services. These services utilize data insights to develop higher value targeted advertising. Certain revenues in this segment are also reported by the Communications segment and are eliminated upon consolidation.

 
 

 

 

Segment Operating Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Segment Operating Revenues

$

485

$

392

 

23.7

 %  

 

$

911

$

729

 

25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

147

 

59

 

-

%

 

 

307

 

109

 

-

%

 

Depreciation and amortization

 

13

 

-

 

-

 %  

 

 

26

 

1

 

-

%

 

    Total Segment Operating Expenses

 

160

 

59

 

-

%

 

 

333

 

110

 

-

%

 

Operating Income

 

325

 

333

 

(2.4)

 %  

 

 

578

 

619

 

(6.6)

%

 

Equity in Net Income of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

 

Segment Operating Contribution

$

325

$

333

 

(2.4)

 %  

 

$

578

$

619

 

(6.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Income Margin

 

67.0

 %  

84.9

 %  

(1,790)

 BP  

 

 

63.4

%

84.9

%

(2,150)

BP

 



Supplemental AT&T Advertising Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a supplemental presentation to our Xandr segment operating results, we are providing a view of total advertising revenues generated by AT&T, which combines the advertising revenues recorded across all operating segments. This combined view presents the entire portfolio of revenues generated from AT&T assets and represents a significant strategic initiative and growth opportunity for AT&T.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising Revenues

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

WarnerMedia

$

1,285

$

225

 

-

 %  

 

$

2,564

$

239

 

-

 %  

 

 

Communications

 

470

 

431

 

9.0

%

 

 

887

 

806

 

10.0

%

 

 

Xandr

 

485

 

392

 

23.7

 %  

 

 

911

 

729

 

25.0

 %  

 

 

Eliminations

 

(399)

 

(387)

 

(3.1)

%

 

 

(749)

 

(721)

 

(3.9)

%

 

    Total Advertising Revenues

$

1,841

$

661

 

-

 %  

 

$

3,613

$

1,053

 

-

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SUPPLEMENTAL SEGMENT RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Dollars in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

17,512

 

$

9,654

 

$

7,858

 

$

2,025

 

$

5,833

 

$

-

 

$

5,833

  Entertainment Group

 

11,368

 

 

8,515

 

 

2,853

 

 

1,339

 

 

1,514

 

 

-

 

 

1,514

  Business Wireline

 

6,628

 

 

3,982

 

 

2,646

 

 

1,256

 

 

1,390

 

 

-

 

 

1,390

Total Communications

 

35,508

 

 

22,151

 

 

13,357

 

 

4,620

 

 

8,737

 

 

-

 

 

8,737

WarnerMedia

 

8,350

 

 

6,289

 

 

2,061

 

 

91

 

 

1,970

 

 

55

 

 

2,025

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

1,032

 

 

881

 

 

151

 

 

165

 

 

(14)

 

 

12

 

 

(2)

  Mexico

 

725

 

 

813

 

 

(88)

 

 

119

 

 

(207)

 

 

-

 

 

(207)

Total Latin America

 

1,757

 

 

1,694

 

 

63

 

 

284

 

 

(221)

 

 

12

 

 

(209)

Xandr

 

485

 

 

147

 

 

338

 

 

13

 

 

325

 

 

-

 

 

325

Segment Total

 

46,100

 

 

30,281

 

 

15,819

 

 

5,008

 

 

10,811

 

 

67

 

 

10,878

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

209

 

 

626

 

 

(417)

 

 

134

 

 

(551)

 

 

 

 

 

 

  Acquisition-related items

 

(30)

 

 

316

 

 

(346)

 

 

1,960

 

 

(2,306)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

94

 

 

(94)

 

 

-

 

 

(94)

 

 

 

 

 

 

  Eliminations and consolidations

 

(1,322)

 

 

(961)

 

 

(361)

 

 

(1)

 

 

(360)

 

 

 

 

 

 

AT&T Inc.

$

44,957

 

$

30,356

 

$

14,601

 

$

7,101

 

$

7,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

17,282

 

 $  

9,663

 

$

7,619

 

$

2,113

 

$

5,506

 

$

-

 

$

5,506

  Entertainment Group

 

11,478

 

 

8,657

 

 

2,821

 

 

1,345

 

 

1,476

 

 

(1)

 

 

1,475

  Business Wireline

 

6,650

 

 

4,038

 

 

2,612

 

 

1,180

 

 

1,432

 

 

1

 

 

1,433

Total Communications

 

35,410

 

 

22,358

 

 

13,052

 

 

4,638

 

 

8,414

 

 

-

 

 

8,414

WarnerMedia

 

1,393

 

 

911

 

 

482

 

 

31

 

 

451

 

 

(26)

 

 

425

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

1,254

 

 

1,016

 

 

238

 

 

186

 

 

52

 

 

15

 

 

67

  Mexico

 

697

 

 

787

 

 

(90)

 

 

127

 

 

(217)

 

 

-

 

 

(217)

Total Latin America

 

1,951

 

 

1,803

 

 

148

 

 

313

 

 

(165)

 

 

15

 

 

(150)

Xandr

 

392

 

 

59

 

 

333

 

 

-

 

 

333

 

 

-

 

 

333

Segment Total

 

39,146

 

 

25,131

 

 

14,015

 

 

4,982

 

 

9,033

 

 

(11)

 

 

9,022

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

320

 

 

661

 

 

(341)

 

 

118

 

 

(459)

 

 

 

 

 

 

  Acquisition-related items

 

-

 

 

321

 

 

(321)

 

 

1,278

 

 

(1,599)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

152

 

 

(152)

 

 

-

 

 

(152)

 

 

 

 

 

 

  Eliminations and consolidations

 

(480)

 

 

(123)

 

 

(357)

 

 

-

 

 

(357)

 

 

 

 

 

 

AT&T Inc.

$

38,986

 

 $  

26,142

 

$

12,844

 

$

6,378

 

$

6,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

SUPPLEMENTAL SEGMENT RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

Dollars in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

35,079

 

 $  

19,835

 

$

15,244

 

$

4,060

 

$

11,184

 

$

-

 

$

11,184

  Entertainment Group

 

22,696

 

 

17,042

 

 

5,654

 

 

2,662

 

 

2,992

 

 

-

 

 

2,992

  Business Wireline

 

13,126

 

 

8,022

 

 

5,104

 

 

2,491

 

 

2,613

 

 

-

 

 

2,613

Total Communications

 

70,901

 

 

44,899

 

 

26,002

 

 

9,213

 

 

16,789

 

 

-

 

 

16,789

WarnerMedia

 

16,729

 

 

12,282

 

 

4,447

 

 

234

 

 

4,213

 

 

122

 

 

4,335

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

2,099

 

 

1,747

 

 

352

 

 

334

 

 

18

 

 

12

 

 

30

  Mexico

 

1,376

 

 

1,538

 

 

(162)

 

 

250

 

 

(412)

 

 

-

 

 

(412)

Total Latin America

 

3,475

 

 

3,285

 

 

190

 

 

584

 

 

(394)

 

 

12

 

 

(382)

Xandr

 

911

 

 

307

 

 

604

 

 

26

 

 

578

 

 

-

 

 

578

Segment Total

 

92,016

 

 

60,773

 

 

31,243

 

 

10,057

 

 

21,186

 

$

134

 

$

21,320

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

418

 

 

1,139

 

 

(721)

 

 

303

 

 

(1,024)

 

 

 

 

 

 

  Acquisition-related items

 

(72)

 

 

389

 

 

(461)

 

 

3,948

 

 

(4,409)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

342

 

 

(342)

 

 

-

 

 

(342)

 

 

 

 

 

 

Eliminations and consolidations

 

(2,578)

 

 

(1,899)

 

 

(679)

 

 

(1)

 

 

(678)

 

 

 

 

 

 

AT&T Inc.

$

89,784

 

 $  

60,744

 

$

29,040

 

$

14,307

 

$

14,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

34,637

 

 $  

19,765

 

$

14,872

 

$

4,208

 

$

10,664

 

$

-

 

$

10,664

  Entertainment Group

 

22,909

 

 

17,468

 

 

5,441

 

 

2,655

 

 

2,786

 

 

(2)

 

 

2,784

  Business Wireline

 

13,397

 

 

8,054

 

 

5,343

 

 

2,350

 

 

2,993

 

 

-

 

 

2,993

Total Communications

 

70,943

 

 

45,287

 

 

25,656

 

 

9,213

 

 

16,443

 

 

(2)

 

 

16,441

WarnerMedia

 

1,505

 

 

993

 

 

512

 

 

32

 

 

480

 

 

(16)

 

 

464

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

2,608

 

 

2,017

 

 

591

 

 

391

 

 

200

 

 

15

 

 

215

  Mexico

 

1,368

 

 

1,590

 

 

(222)

 

 

254

 

 

(476)

 

 

-

 

 

(476)

Total Latin America

 

3,976

 

 

3,607

 

 

369

 

 

645

 

 

(276)

 

 

15

 

 

(261)

Xandr

 

729

 

 

109

 

 

620

 

 

1

 

 

619

 

 

-

 

 

619

Segment Total

 

77,153

 

 

49,996

 

 

27,157

 

 

9,891

 

 

17,266

 

$

(3)

 

$

17,263

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

653

 

 

1,396

 

 

(743)

 

 

141

 

 

(884)

 

 

 

 

 

 

  Acquisition-related items

 

-

 

 

388

 

 

(388)

 

 

2,340

 

 

(2,728)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

332

 

 

(332)

 

 

-

 

 

(332)

 

 

 

 

 

 

Eliminations and consolidations

 

(782)

 

 

(127)

 

 

(655)

 

 

-

 

 

(655)

 

 

 

 

 

 

AT&T Inc.

$

77,024

 

 $  

51,985

 

$

25,039

 

$

12,372

 

$

12,667