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AT&T (T)

Filed: 29 Jan 20, 6:45am

AT&T Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

Dollars in millions except per share amounts

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Service

$

41,475

$

42,496

 

(2.4)

%

 

$

163,499

$

152,345

 

7.3

%

  Equipment

 

5,346

 

5,497

 

(2.7)

%

 

 

17,694

 

18,411

 

(3.9)

%

    Total Operating Revenues

 

46,821

 

47,993

 

(2.4)

%

 

 

181,193

 

170,756

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Equipment

 

5,606

 

5,733

 

(2.2)

%

 

 

18,653

 

19,786

 

(5.7)

%

    Broadcast, programming and operations

 

8,684

 

8,885

 

(2.3)

%

 

 

31,132

 

26,727

 

16.5

%

    Other cost of revenues (exclusive of depreciation

          and amortization shown separately below)

 

8,446

 

8,691

 

(2.8)

%

 

 

34,356

 

32,906

 

4.4

%

   Selling, general and administrative

 

10,345

 

10,586

 

(2.3)

%

 

 

39,422

 

36,765

 

7.2

%

   Asset abandonment and impairments

 

1,458

 

46

 

-

%

 

 

1,458

 

46

 

-

%

   Depreciation and amortization

 

6,961

 

7,892

 

(11.8)

%

 

 

28,217

 

28,430

 

(0.7)

%

    Total Operating Expenses

 

41,500

 

41,833

 

(0.8)

%

 

 

153,238

 

144,660

 

5.9

%

Operating Income

 

5,321

 

6,160

 

(13.6)

%

 

 

27,955

 

26,096

 

7.1

%

Interest Expense

 

2,049

 

2,112

 

(3.0)

%

 

 

8,422

 

7,957

 

5.8

%

Equity in Net Income (Loss) of Affiliates

 

(30)

 

23

 

-

%

 

 

6

 

(48)

 

-

%

Other Income (Expense) - Net

 

(104)

 

1,674

 

-

%

 

 

(1,071)

 

6,782

 

-

%

Income Before Income Taxes

 

3,138

 

5,745

 

(45.4)

%

 

 

18,468

 

24,873

 

(25.8)

%

Income Tax Expense

 

434

 

615

 

(29.4)

%

 

 

3,493

 

4,920

 

(29.0)

%

Net Income

 

2,704

 

5,130

 

(47.3)

%

 

 

14,975

 

19,953

 

(24.9)

%

 Less: Net Income Attributable to

    Noncontrolling Interest

 

(310)

 

(272)

 

(14.0)

%

 

 

(1,072)

 

(583)

 

(83.9)

%

Net Income Attributable to AT&T

$

2,394

$

4,858

 

(50.7)

%

 

$

13,903

$

19,370

 

(28.2)

%

 Less: Preferred Stock Dividends

 

(3)

 

-

 

-

%

 

 

(3)

 

-

 

-

%

Net Income Attributable to Common Stock

$

2,391

$

4,858

 

(50.8)

%

 

$

13,900

$

19,370

 

(28.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share Attributable to

    Common Stock

$

0.33

$

0.66

 

(50.0)

%

 

$

1.90

$

2.85

 

(33.3)

%

Weighted Average Common

    Shares Outstanding (000,000)

 

7,312

 

7,296

 

0.2

%

 

 

7,319

 

6,778

 

8.0

%

Diluted Earnings Per Share Attributable to

    Common Stock

$

0.33

$

0.66

 

(50.0)

%

 

$

1.89

$

2.85

 

(33.7)

%

Weighted Average Common 

    Shares Outstanding with Dilution (000,000)

 

7,341

 

7,328

 

0.2

%

 

 

7,348

 

6,806

 

8.0

%



1


AT&T Inc.

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

Dollars in millions

 

Unaudited

 

Dec. 31,

 

 

Dec. 31,

 

 

 

2019

 

 

2018

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

12,130

 

$

5,204

Accounts receivable - net of allowances for doubtful accounts of $1,235 and $907

 

22,703

 

 

26,472

Prepaid expenses

 

1,631

 

 

2,047

Other current assets

 

18,364

 

 

17,704

Total current assets

 

54,828

 

 

51,427

Noncurrent Inventories and Theatrical Film and Television Production Costs

 

12,434

 

 

7,713

Property, Plant and Equipment – Net

 

130,343

 

 

131,473

Goodwill

 

146,241

 

 

146,370

Licenses – Net

 

97,907

 

 

96,144

Trademarks and Trade Names – Net

 

23,567

 

 

24,345

Distribution Networks – Net

 

15,345

 

 

17,069

Other Intangible Assets – Net

 

20,798

 

 

26,269

Investments in and Advances to Equity Affiliates

 

3,695

 

 

6,245

Operating Lease Right-of-Use Assets

 

24,039

 

 

-

Other Assets

 

22,754

 

 

24,809

Total Assets

$

551,951

 

$

531,864

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Debt maturing within one year

$

11,438

 

$

10,255

Accounts payable and accrued liabilities

 

45,956

 

 

43,184

Advanced billings and customer deposits

 

6,191

 

 

5,948

Accrued taxes

 

1,212

 

 

1,179

Dividends payable

 

3,781

 

 

3,854

Total current liabilities

 

68,578

 

 

64,420

Long-Term Debt

 

151,709

 

 

166,250

Deferred Credits and Other Noncurrent Liabilities

 

 

 

 

 

Deferred income taxes

 

59,502

 

 

57,859

Postemployment benefit obligation

 

18,788

 

 

19,218

Operating lease liabilities

 

21,804

 

 

-

Other noncurrent liabilities

 

29,636

 

 

30,233

Total deferred credits and other noncurrent liabilities

 

129,730

 

 

107,310

Stockholders’ Equity

 

 

 

 

 

Preferred stock

-

 

 

-

Common stock

 

7,621

 

 

7,621

Additional paid-in capital

 

126,279

 

 

125,525

Retained earnings

 

57,936

 

 

58,753

Treasury stock

 

(13,085)

 

 

(12,059)

Accumulated other comprehensive income

 

5,470

 

 

4,249

Noncontrolling interest

 

17,713

 

 

9,795

Total stockholders’ equity

 

201,934

 

 

193,884

Total Liabilities and Stockholders' Equity

$

551,951

 

$

531,864

 

 

 

 

 

 

 



2

AT&T Inc.

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

Dollars in millions

 

Unaudited

Year Ended

 

 

2019

 

 

2018

Operating Activities

 

 

 

 

 

Net income

$

14,975

 

$

19,953

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

 

 

 

 

 

Depreciation and amortization

 

28,217

 

 

28,430

Amortization of film and television costs

 

9,587

 

 

3,772

Undistributed earnings from investments in equity affiliates

 

295

 

 

292

Provision for uncollectible accounts

 

2,575

 

 

1,791

Deferred income tax expense (benefit)

 

1,806

 

 

4,931

Net (gain) loss from investments, net of impairments

 

(1,218)

 

 

(739)

Pension and postiretirement benefit expense (credit)

 

(2,002)

 

 

(1,148)

Actuarial (gain) loss on pension and postretirement benefits

 

5,171

 

 

(3,412)

Asset abandonments and impairments

 

1,458

 

 

46

Changes in operating assets and liabilities:

 

 

 

 

 

Receivables

 

2,745

 

 

(1,580)

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

 

(12,852)

 

 

(6,442)

Accounts payable and other accrued liabilities

 

(1,457)

 

 

1,602

Equipment installment receivables and related sales

 

548

 

 

(490)

Deferred customer contract acquisition and fulfillment costs

 

(910)

 

 

(3,458)

Postretirement claims and contributions

 

(1,008)

 

 

(936)

Other - net

 

738

 

 

990

Total adjustments

 

33,693

 

 

23,649

Net Cash Provided by Operating Activities

 

48,668

 

 

43,602

 

 

 

 

 

Investing Activities

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

Purchase of property and equipment

 

(19,435)

 

 

(20,758)

Interest during construction

 

(200)

 

 

(493)

Acquisitions, net of cash acquired

 

(1,809)

 

 

(43,309)

Dispositions

 

4,684

 

 

2,148

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

 

435

 

 

(183)

Advances to and investments in equity affiliates, net

 

(365)

 

 

(1,050)

Cash collections of deferred purchase price

 

-

 

 

500

Net Cash Used in Investing Activities

 

(16,690)

 

 

(63,145)

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

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

 

(276)

 

 

(821)

Issuance of other short-term borrowings

 

4,012

 

 

4,898

Repayment of other short-term borrowings

 

(6,904)

 

 

(2,098)

Issuance of long-term debt

 

17,039

 

 

41,875

Repayment of long-term debt

 

(27,592)

 

 

(52,643)

Payment of vendor financing

 

(3,050)

 

 

(560)

Issuance of preferred stock

 

 

1,164

 

 

-

Purchase of treasury stock

 

(2,417)

 

 

(609)

Issuance of treasury stock

 

631

 

 

745

Issuance of preferred interests in subsidiary

 

 

7,876

 

 

-

Dividends paid

 

(14,888)

 

 

(13,410)

Other

 

(678)

 

 

(3,366)

Net Cash Used in Financing Activities

 

(25,083)

 

 

(25,989)

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

 

6,895

 

 

(45,532)

Cash and cash equivalents and restricted cash beginning of year

 

5,400

 

 

50,932

Cash and Cash Equivalents and Restricted Cash End of Year

$

12,295

 

$

5,400

 

 

 

 

 

 


3

AT&T Inc.

Consolidated Supplementary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Financial Data

Dollars in millions except per share amounts

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

$

3,752

$

4,063

 

(7.7)

%

 

$

19,435

$

20,758

 

(6.4)

%

 

Interest during construction

 

40

 

89

 

(55.1)

%

 

 

200

 

493

 

(59.4)

%

Total Capital Expenditures

$

3,792

$

4,152

 

(8.7)

%

 

$

19,635

$

21,251

 

(7.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared per Common Share

$

0.52

$

0.51

 

2.0

%

 

$

2.05

$

2.01

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period Common Shares Outstanding (000,000)

 

 

 

 

 

 

 

 

 

7,255

 

7,282

 

(0.4)

%

Debt Ratio

 

 

 

 

 

 

 

 

 

44.7

%

47.7

%

(300)

BP

Total Employees

 

 

 

 

 

 

 

 

 

247,800

 

268,220

 

(7.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

December 31,

Percent

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Broadband Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

 

 

 

 

 

 

 

 

14,659

 

14,751

 

(0.6)

%

 

DSL

 

 

 

 

 

 

 

 

 

730

 

950

 

(23.2)

%

Total Broadband Connections

 

 

 

 

 

 

 

 

 

15,389

 

15,701

 

(2.0)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Access Lines

 

 

 

 

 

 

 

 

 

8,487

 

10,002

 

(15.1)

%

 

U-verse  VoIP Connections

 

 

 

 

 

 

 

 

 

4,370

 

5,114

 

(14.5)

%

Total Retail Voice Connections

 

 

 

 

 

 

 

 

 

12,857

 

15,116

 

(14.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Broadband Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

(127)

 

7

 

-

%

 

 

(94)

 

264

 

-

%

 

DSL

 

(59)

 

(53)

 

(11.3)

%

 

 

(219)

 

(282)

 

22.3

%

Total Broadband Net Additions

 

(186)

 

(46)

 

-

%

 

 

(313)

 

(18)

 

-

%

4

COMMUNICATIONS SEGMENT


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Communications segment provides wireless and wireline telecom, video and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Entertainment Group, and Business Wireline. Historical results in the Mobility and Business Wireline business units of the Communications segment have been recast to remove operations in Puerto Rico and the U.S. Virgin Islands, which we began held-for-sale accounting in the third quarter of 2019.


Segment Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility

 $  

18,700

 $  

18,556

 

0.8

 %  

 

 $  

71,056

 $  

70,521

 

0.8

 %  

 

Entertainment Group

 

11,233

 

11,962

 

(6.1)

%

 

 

45,126

 

46,460

 

(2.9)

%

 

Business Wireline

 

6,589

 

6,705

 

(1.7)

 %  

 

 

26,177

 

26,740

 

(2.1)

 %  

    Total Segment Operating Revenues

 

36,522

 

37,223

 

(1.9)

%

 

 

142,359

 

143,721

 

(0.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility

 

5,503

 

5,424

 

1.5

 %  

 

 

22,320

 

21,568

 

3.5

 %  

 

Entertainment Group

 

745

 

825

 

(9.7)

%

 

 

4,822

 

4,713

 

2.3

%

 

Business Wireline

 

1,263

 

1,358

 

(7.0)

 %  

 

 

5,087

 

5,824

 

(12.7)

 %  

    Total Segment Operating Contribution

$

7,511

$

7,607

 

(1.3)

%

 

$

32,229

$

32,105

 

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Mobility


Mobility provides nationwide wireless service and equipment. Results have been recast to conform to the current period's presentation.


Mobility Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service

 $  

13,948

 $  

13,700

 

1.8

 %  

 

 $  

55,331

 $  

54,294

 

1.9

 %  

Equipment

 

4,752

 

4,856

 

(2.1)

%

 

 

15,725

 

16,227

 

(3.1)

%

    Total Operating Revenues

 

18,700

 

18,556

 

0.8

 %  

 

 

71,056

 

70,521

 

0.8

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

11,170

 

11,087

 

0.7

%

 

 

40,681

 

40,690

 

-

%

Depreciation and amortization

 

2,027

 

2,045

 

(0.9)

 %  

 

 

8,054

 

8,263

 

(2.5)

 %  

    Total Operating Expenses

 

13,197

 

13,132

 

0.5

%

 

 

48,735

 

48,953

 

(0.4)

%

Operating Income

 

5,503

 

5,424

 

1.5

 %  

 

 

22,321

 

21,568

 

3.5

 %  

Equity in Net Income (Loss) of Affiliates

 

-

 

-

 

-

%

 

 

(1)

 

-

 

-

%

Operating  Contribution

$

5,503

$

5,424

 

1.5

 %  

 

$

22,320

$

21,568

 

3.5

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

29.4

%

29.2

%

20

 BP  

 

 

31.4

%

30.6

%

80

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

Unaudited

 

 

 

December 31,

Percent

 

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Mobility Subscribers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Postpaid smartphones

 

 

 

 

 

 

 

 

 

60,664

 

60,131

 

0.9

%

   Postpaid feature phones and data-centric devices

 

 

 

 

 

 

 

 

 

 

14,543

 

15,937

 

(8.7)

%

Postpaid

 

 

 

 

 

 

 

 

 

75,207

 

76,068

 

(1.1)

%

Prepaid

 

 

 

 

 

 

 

 

 

17,803

 

16,828

 

5.8

%

Reseller

 

 

 

 

 

 

 

 

 

6,893

 

7,693

 

(10.4)

%

Connected Devices

 

 

 

 

 

 

 

 

 

65,986

 

51,332

 

28.5

%

Total Mobility Subscribers

 

 

 

 

 

 

 

 

 

165,889

 

151,921

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Phone Subscribers

 

 

 

 

 

 

 

 

 

63,018

 

62,882

 

0.2

%

Total Phone Subscribers

 

 

 

 

 

 

 

 

 

79,700

 

78,767

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

 

 

Year Ended

Percent

 

 

 

2019

 

2018

 

 

 

 

 

2019

 

2018

 

Change

Mobility Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

135

 

15

 

-

%

 

 

(435)

 

(90)

 

-

%

Prepaid

 

8

 

26

 

(69.2)

%

 

 

677

 

1,301

 

(48.0)

%

Reseller

 

(251)

 

(424)

 

40.8

%

 

 

(928)

 

(1,599)

 

42.0

%

Connected Devices

 

3,698

 

3,153

 

17.3

%

 

 

14,645

 

12,324

 

18.8

%

Total Mobility Net Additions

 

3,590

 

2,770

 

29.6

%

 

 

13,959

 

11,936

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Phone Net Additions

 

229

 

131

 

74.8

%

 

 

483

 

194

 

-

%

Total Phone Net Additions

 

209

 

144

 

45.1

%

 

 

989

 

1,248

 

(20.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Churn

 

1.29

%

1.23

%

6

BP

 

 

1.18

%

1.12

%

6

BP

Postpaid Phone-Only Churn

 

1.07

%

1.00

%

7

BP

 

 

0.95

%

0.90

%

5

BP

6


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

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

 Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video entertainment

$

8,068

$

8,676

 

(7.0)

%

 

$

32,110

$

33,357

 

(3.7)

%

 

High-speed internet

 

2,107

 

2,052

 

2.7

%

 

 

8,403

 

7,956

 

5.6

%

 

Legacy voice and data services

 

604

 

724

 

(16.6)

%

 

 

2,573

 

3,041

 

(15.4)

%

 

Other service and equipment

 

454

 

510

 

(11.0)

%

 

 

2,040

 

2,106

 

(3.1)

%

 

Total Operating Revenues

 

11,233

 

11,962

 

(6.1)

%

 

 

45,126

 

46,460

 

(2.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

9,189

 

9,807

 

(6.3)

%

 

 

35,028

 

36,430

 

(3.8)

%

 

Depreciation and amortization

 

1,298

 

1,329

 

(2.3)

%

 

 

5,276

 

5,315

 

(0.7)

%

 

Total Operating Expenses

 

10,487

 

11,136

 

(5.8)

%

 

 

40,304

 

41,745

 

(3.5)

%

 

Operating Income

 

746

 

826

 

(9.7)

%

 

 

4,822

 

4,715

 

2.3

%

 

Equity in Net Income (Loss) of Affiliates

 

(1)

 

(1)

 

-

%

 

 

-

 

(2)

 

-

%

 

Operating Contribution

$

745

$

825

 

(9.7)

%

 

$

4,822

$

4,713

 

2.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

6.6

%

6.9

%

(30)

BP

 

 

10.7

%

10.1

%

60

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

 

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

December 31,

Percent

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

 

Video Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium TV

 

 

 

 

 

 

 

 

 

19,473

 

22,903

 

(15.0)

%

 

AT&T TV Now

 

 

 

 

 

 

 

 

 

926

 

1,591

 

(41.8)

%

 

Total Video Connections

 

 

 

 

 

 

 

 

 

20,399

 

24,494

 

(16.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

 

 

 

 

 

 

 

 

13,598

 

13,729

 

(1.0)

%

 

DSL

 

 

 

 

 

 

 

 

 

521

 

680

 

(23.4)

%

 

Total Broadband Connections

 

 

 

 

 

 

 

 

 

14,119

 

14,409

 

(2.0)

%

 

Fiber Broadband Connections (included in IP)

 

 

 

 

 

 

 

 

 

3,887

 

2,763

 

40.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Consumer Switched Access Lines

 

 

 

 

 

 

 

 

 

3,329

 

3,967

 

(16.1)

%

 

U-verse Consumer VoIP Connections

 

 

 

 

 

 

 

 

 

3,794

 

4,582

 

(17.2)

%

 

Total Retail Consumer Voice Connections

 

 

 

 

 

 

 

 

 

7,123

 

8,549

 

(16.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Video Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium TV1

 

(945)

 

(391)

 

-

%

 

 

(3,430)

 

(1,186)

 

-

%

 

AT&T TV Now

 

(219)

 

(267)

 

18.0

%

 

 

(665)

 

436

 

-

%

 

Total Video Net Additions

 

(1,164)

 

(658)

 

(76.9)

%

 

 

(4,095)

 

(750)

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

(141)

 

6

 

-

%

 

 

(131)

 

267

 

-

%

 

DSL

 

(41)

 

(38)

 

(7.9)

%

 

 

(159)

 

(208)

 

23.6

%

 

Total Broadband Net Additions

 

(182)

 

(32)

 

-

%

 

 

(290)

 

59

 

-

%

 

Fiber Broadband Net Additions (included in IP)

 

191

 

259

 

(26.3)

%

 

 

1,124

 

1,034

 

8.7

%

 

1

Includes the impact of customers that migrated to AT&T TV Now.

 

7


Business Wireline

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Wireline Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic and managed services

 $  

3,927

 $  

3,811

 

3.0

 %  

 

 $  

15,440

 $  

14,660

 

5.3

 %  

 

Legacy voice and data services

 

2,207

 

2,498

 

(11.6)

%

 

 

9,180

 

10,674

 

(14.0)

%

 

Other service and equipment

 

455

 

396

 

14.9

 %  

 

 

1,557

 

1,406

 

10.7

 %  

    Total Operating Revenues

 

6,589

 

6,705

 

(1.7)

%

 

 

26,177

 

26,740

 

(2.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

4,062

 

4,154

 

(2.2)

 %  

 

 

16,091

 

16,201

 

(0.7)

 %  

Depreciation and amortization

 

1,264

 

1,194

 

5.9

%

 

 

4,999

 

4,714

 

6.0

%

    Total Operating Expenses

 

5,326

 

5,348

 

(0.4)

 %  

 

 

21,090

 

20,915

 

0.8

 %  

Operating Income

 

1,263

 

1,357

 

(6.9)

%

 

 

5,087

 

5,825

 

(12.7)

%

Equity in Net Income (Loss) of Affiliates

 

-

 

1

 

-

 %  

 

 

-

 

(1)

 

-

 %  

Operating Contribution

$

1,263

$

1,358

 

(7.0)

%

 

$

5,087

$

5,824

 

(12.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

19.2

%

20.2

%

(100)

BP

 

 

19.4

%

21.8

%

(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. Results have been recast to conform to the current period's presentation.

 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Solutions Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless service

 $  

2,024

 $  

1,883

 

7.5

 %  

 

 $  

7,925

 $  

7,323

 

8.2

 %  

 

 

Strategic and managed services

 

3,927

 

3,811

 

3.0

%

 

 

15,440

 

14,660

 

5.3

%

 

 

Legacy voice and data services

 

2,207

 

2,498

 

(11.6)

 %  

 

 

9,180

 

10,674

 

(14.0)

 %  

 

 

Other service and equipment

 

455

 

396

 

14.9

%

 

 

1,557

 

1,406

 

10.7

%

 

 

Wireless equipment

 

855

 

773

 

10.6

 %  

 

 

2,757

 

2,510

 

9.8

 %  

 

    Total Operating Revenues

 

9,468

 

9,361

 

1.1

%

 

 

36,859

 

36,573

 

0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

5,965

 

5,884

 

1.4

 %  

 

 

22,735

 

22,608

 

0.6

 %  

 

Depreciation and amortization

 

1,570

 

1,492

 

5.2

%

 

 

6,213

 

5,900

 

5.3

%

 

    Total Operating Expenses

 

7,535

 

7,376

 

2.2

 %  

 

 

28,948

 

28,508

 

1.5

 %  

 

Operating Income

 

1,933

 

1,985

 

(2.6)

%

 

 

7,911

 

8,065

 

(1.9)

%

 

Equity in Net Income (Loss) of Affiliates

 

-

 

1

 

-

 %  

 

 

-

 

(1)

 

-

 %  

 

Operating Contribution

$

1,933

$

1,986

 

(2.7)

%

 

$

7,911

$

8,064

 

(1.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

20.4

%

21.2

%

(80)

BP

 

 

21.5

%

22.1

%

(60)

BP

 

 

8

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

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turner

$

3,262

 $  

3,212

 

1.6

 %  

 

$

13,122

 $  

6,979

 

88.0

 %  

 

HBO

 

1,704

 

1,673

 

1.9

%

 

 

6,749

 

3,598

 

87.6

%

 

Warner Bros.

 

4,118

 

4,476

 

(8.0)

 %  

 

 

14,358

 

8,703

 

65.0

 %  

 

Eliminations and other

 

(160)

 

(129)

 

(24.0)

%

 

 

(730)

 

(339)

 

-

%

    Total Segment Operating Revenues

 

8,924

 

9,232

 

(3.3)

 %  

 

 

33,499

 

18,941

 

76.9

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turner

 

1,273

 

1,306

 

(2.5)

%

 

 

5,199

 

3,108

 

67.3

%

 

HBO

 

471

 

650

 

(27.5)

 %  

 

 

2,365

 

1,384

 

70.9

 %  

 

Warner Bros.

 

794

 

807

 

(1.6)

%

 

 

2,350

 

1,449

 

62.2

%

 

Eliminations and other

 

(91)

 

(60)

 

(51.7)

 %  

 

 

(588)

 

(246)

 

-

 %  

    Total Segment Operating Contribution

$

2,447

$

2,703

 

(9.5)

%

 

$

9,326

$

5,695

 

63.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Turner

 

 

 

Turner is comprised of the WarnerMedia businesses managed by Turner as well as our RSN. This business unit creates and programs branded news, entertainment, sports and kids multi-platform content that is sold to various distribution affiliates. Turner also sells advertising on its networks and digital properties.

 
 

 

 

Turner Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Subscription

$

1,901

$

1,844

 

3.1

 %  

 

$

7,736

$

4,207

 

83.9

 %  

 

 

Advertising

 

1,126

 

1,149

 

(2.0)

%

 

 

4,566

 

2,330

 

96.0

%

 

 

Content and other

 

235

 

219

 

7.3

 %  

 

 

820

 

442

 

85.5

 %  

 

    Total Operating Revenues

 

3,262

 

3,212

 

1.6

%

 

 

13,122

 

6,979

 

88.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

1,927

 

1,861

 

3.5

 %  

 

 

7,740

 

3,794

 

-

 %  

 

Depreciation and amortization

 

68

 

60

 

13.3

%

 

 

235

 

131

 

79.4

%

 

    Total Operating Expenses

 

1,995

 

1,921

 

3.9

 %  

 

 

7,975

 

3,925

 

-

 %  

 

Operating Income

 

1,267

 

1,291

 

(1.9)

%

 

 

5,147

 

3,054

 

68.5

%

 

Equity in Net Income of Affiliates

 

6

 

15

 

(60.0)

 %  

 

 

52

 

54

 

(3.7)

 %  

 

Operating Contribution

$

1,273

$

1,306

 

(2.5)

%

 

$

5,199

$

3,108

 

67.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

38.8

%

40.2

%

(140)

BP

 

 

39.2

%

43.8

%

(460)

BP

 
9

Home Box Office

 

 

 

Home Box Office consists of premium pay television and OTT services domestically and premium pay, basic tier television and OTT services internationally, as well as content licensing and home entertainment

 
 

 

 

Home Box Office Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Subscription

$

1,431

$

1,414

 

1.2

 %  

 

$

5,814

$

3,201

 

81.6

 %  

 

 

Content and other

 

273

 

259

 

5.4

%

 

 

935

 

397

 

-

%

 

Total Operating Revenues

 

1,704

 

1,673

 

1.9

 %  

 

 

6,749

 

3,598

 

87.6

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

1,188

 

1,025

 

15.9

%

 

 

4,312

 

2,187

 

97.2

%

 

Depreciation and amortization

 

35

 

26

 

34.6

 %  

 

 

102

 

56

 

82.1

 %  

 

    Total Operating Expenses

 

1,223

 

1,051

 

16.4

%

 

 

4,414

 

2,243

 

96.8

%

 

Operating Income

 

481

 

622

 

(22.7)

 %  

 

 

2,335

 

1,355

 

72.3

 %  

 

Equity in Net Income (Loss) of Affiliates

 

(10)

 

28

 

-

%

 

 

30

 

29

 

3.4

%

 

Operating Contribution

$

471

$

650

 

(27.5)

 %  

 

$

2,365

$

1,384

 

70.9

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

28.2

%

37.2

%

(900)

BP

 

 

34.6

%

37.7

%

(310)

BP

 

Warner Bros.

 

 

 

Warner Bros. consists of the production, distribution and licensing of television programming and feature films, the distribution of home entertainment products and the production and distribution of games.

 
 

 

 

Warner Bros. Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Theatrical product

$

1,570

$

2,085

 

(24.7)

 %  

 

$

5,978

$

4,002

 

49.4

 %  

 

 

Television product

 

1,983

 

1,827

 

8.5

%

 

 

6,367

 

3,621

 

75.8

%

 

 

Video games and other

 

565

 

564

 

0.2

 %  

 

 

2,013

 

1,080

 

86.4

 %  

 

    Total Operating Revenues

 

4,118

 

4,476

 

(8.0)

%

 

 

14,358

 

8,703

 

65.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

3,273

 

3,623

 

(9.7)

 %  

 

 

11,816

 

7,130

 

65.7

 %  

 

Depreciation and amortization

 

40

 

42

 

(4.8)

%

 

 

162

 

96

 

68.8

%

 

    Total Operating Expenses

 

3,313

 

3,665

 

(9.6)

 %  

 

 

11,978

 

7,226

 

65.8

 %  

 

Operating Income

 

805

 

811

 

(0.7)

%

 

 

2,380

 

1,477

 

61.1

%

 

Equity in Net Income (Loss) of Affiliates

 

(11)

 

(4)

 

-

 %  

 

 

(30)

 

(28)

 

(7.1)

 %  

 

Operating Contribution

$

794

$

807

 

(1.6)

%

 

$

2,350

$

1,449

 

62.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

19.5

%

18.1

%

140

BP

 

 

16.6

%

17.0

%

(40)

BP

 
10

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

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vrio

$

982

 $  

1,074

 

(8.6)

 %  

 

$

4,094

 $  

4,784

 

(14.4)

 %  

 

Mexico

 

776

 

769

 

0.9

%

 

 

2,869

 

2,868

 

-

%

    Total Segment Operating Revenues

 

1,758

 

1,843

 

(4.6)

 %  

 

 

6,963

 

7,652

 

(9.0)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vrio

 

40

 

66

 

(39.4)

%

 

 

83

 

347

 

(76.1)

%

 

Mexico

 

(127)

 

(314)

 

59.6

 %  

 

 

(718)

 

(1,057)

 

32.1

 %  

    Total Segment Operating Contribution

$

(87)

$

(248)

 

64.9

%

 

$

(635)

$

(710)

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mexico

 

 Mexico provides wireless services and equipment to customers in Mexico.

 

Mexico Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

Wireless service

$

487

$

440

 

10.7

%

 

$

1,863

$

1,701

 

9.5

%

Wireless equipment

 

289

 

329

 

(12.2)

%

 

 

1,006

 

1,167

 

(13.8)

%

    Total Operating Revenues

 

776

 

769

 

0.9

 %  

 

 

2,869

 

2,868

 

-

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

773

 

956

 

(19.1)

%

 

 

3,085

 

3,415

 

(9.7)

%

Depreciation and amortization

 

130

 

127

 

2.4

 %  

 

 

502

 

510

 

(1.6)

 %  

    Total Operating Expenses

 

903

 

1,083

 

(16.6)

%

 

 

3,587

 

3,925

 

(8.6)

%

Operating Income (Loss)

 

(127)

 

(314)

 

59.6

 %  

 

 

(718)

 

(1,057)

 

32.1

 %  

Equity in Net Income of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

Operating Contribution

$

(127)

$

(314)

 

59.6

 %  

 

$

(718)

$

(1,057)

 

32.1

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

(16.4)

%

(40.8)

%

2,440

 BP  

 

 

(25.0)

%

(36.9)

%

1,190

 BP  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

December 31,

Percent

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Mexico Wireless Subscribers1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

 

 

 

 

 

 

 

 

5,103

 

5,805

 

(12.1)

 %  

Prepaid

 

 

 

 

 

 

 

 

 

13,584

 

12,264

 

10.8

%

Reseller

 

 

 

 

 

 

 

 

 

472

 

252

 

87.3

 %  

Total Mexico Wireless Subscribers

 

 

 

 

 

 

 

 

 

19,159

 

18,321

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Mexico Wireless Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

(249)

 

(17)

 

-

 %  

 

 

(608)

 

307

 

-

 %  

Prepaid

 

736

 

994

 

(26.0)

%

 

 

1,919

 

2,867

 

(33.1)

%

Reseller

 

53

 

39

 

35.9

 %  

 

 

219

 

48

 

-

 %  

Total Mexico Wireless Net Subscriber Additions

 

540

 

1,016

 

(46.9)

%

 

 

1,530

 

3,222

 

(52.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

11

Vrio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Vrio Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Operating Revenues

$

982

$

1,074

 

(8.6)

 %  

 

$

4,094

$

4,784

 

(14.4)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

780

 

849

 

(8.1)

%

 

 

3,378

 

3,743

 

(9.8)

%

Depreciation and amortization

 

164

 

169

 

(3.0)

 %  

 

 

660

 

728

 

(9.3)

 %  

Total Operating Expenses

 

944

 

1,018

 

(7.3)

%

 

 

4,038

 

4,471

 

(9.7)

%

Operating Income

 

38

 

56

 

(32.1)

 %  

 

 

56

 

313

 

(82.1)

 %  

Equity in Net Income of Affiliates

 

2

 

10

 

(80.0)

%

 

 

27

 

34

 

(20.6)

%

Operating Contribution

$

40

$

66

 

(39.4)

 %  

 

$

83

$

347

 

(76.1)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

3.9

%

5.2

%

(130)

 BP  

 

 

1.4

%

6.5

%

(510)

 BP  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

December 31,

Percent

 

 

 

 

 

 

 

 

 

2019

 

2018

 

Change

Vrio Video Subscribers1

 

 

 

 

 

 

 

 

 

13,331

 

13,838

 

(3.7)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Vrio Video Net Subscriber Additions

 

25

 

198

 

(87.4)

 %  

 

 

(285)

 

250

 

-

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

12

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

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Segment Operating Revenues

$

607

$

566

 

7.2

 %  

 

$

2,022

$

1,740

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

177

 

180

 

(1.7)

%

 

 

646

 

398

 

62.3

%

 

Depreciation and amortization

 

17

 

5

 

-

 %  

 

 

58

 

9

 

-

%

 

    Total Segment Operating Expenses

 

194

 

185

 

4.9

%

 

 

704

 

407

 

73.0

%

 

Operating Income

 

413

 

381

 

8.4

 %  

 

 

1,318

 

1,333

 

(1.1)

%

 

Equity in Net Income of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

 

Segment Operating Contribution

$

413

$

381

 

8.4

 %  

 

$

1,318

$

1,333

 

(1.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Income Margin

 

68.0

 %  

67.3

 %  

70

 BP  

 

 

65.2

%

76.6

%

(1,140)

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

Fourth Quarter

Percent

 

Year Ended

Percent

 

 

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

WarnerMedia

$

1,167

$

1,239

 

(5.8)

 %  

 

$

4,676

$

2,461

 

90.0

 %  

 

 

Communications

 

581

 

543

 

7.0

%

 

 

1,963

 

1,827

 

7.4

%

 

 

Xandr

 

607

 

566

 

7.2

 %  

 

 

2,022

 

1,740

 

16.2

 %  

 

 

Eliminations

 

(502)

 

(473)

 

(6.1)

%

 

 

(1,672)

 

(1,595)

 

(4.8)

%

 

    Total Advertising Revenues

$

1,853

$

1,875

 

(1.2)

 %  

 

$

6,989

$

4,433

 

57.7

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
13

SUPPLEMENTAL SEGMENT RECONCILIATION


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Dollars in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

18,700

 

$

11,170

 

$

7,530

 

$

2,027

 

$

5,503

 

$

-

 

$

5,503

  Entertainment Group

 

11,233

 

 

9,189

 

 

2,044

 

 

1,298

 

 

746

 

 

(1)

 

 

745

  Business Wireline

 

6,589

 

 

4,062

 

 

2,527

 

 

1,264

 

 

1,263

 

 

-

 

 

1,263

Total Communications

 

36,522

 

 

24,421

 

 

12,101

 

 

4,589

 

 

7,512

 

 

(1)

 

 

7,511

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

3,262

 

 

1,927

 

 

1,335

 

 

68

 

 

1,267

 

 

6

 

 

1,273

  Home Box Office

 

1,704

 

 

1,188

 

 

516

 

 

35

 

 

481

 

 

(10)

 

 

471

  Warner Bros.

 

4,118

 

 

3,273

 

 

845

 

 

40

 

 

805

 

 

(11)

 

 

794

  Eliminations and other

 

(160)

 

 

(40)

 

 

(120)

 

 

11

 

 

(131)

 

 

40

 

 

(91)

Total WarnerMedia

 

8,924

 

 

6,348

 

 

2,576

 

 

154

 

 

2,422

 

 

25

 

 

2,447

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

982

 

 

780

 

 

202

 

 

164

 

 

38

 

 

2

 

 

40

  Mexico

 

776

 

 

773

 

 

3

 

 

130

 

 

(127)

 

 

-

 

 

(127)

Total Latin America

 

1,758

 

 

1,553

 

 

205

 

 

294

 

 

(89)

 

 

2

 

 

(87)

Xandr

 

607

 

 

177

 

 

430

 

 

17

 

 

413

 

 

-

 

 

413

Segment Total

 

47,811

 

 

32,499

 

 

15,312

 

 

5,054

 

 

10,258

 

$

26

 

$

10,284

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

385

 

 

879

 

 

(494)

 

 

124

 

 

(618)

 

 

 

 

 

 

  Acquisition-related items

 

-

 

 

381

 

 

(381)

 

 

1,741

 

 

(2,122)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

1,701

 

 

(1,701)

 

 

43

 

 

(1,744)

 

 

 

 

 

 

  Eliminations and consolidations

 

(1,375)

 

 

(921)

 

 

(454)

 

 

(1)

 

 

(453)

 

 

 

 

 

 

AT&T Inc.

$

46,821

 

$

34,539

 

$

12,282

 

$

6,961

 

$

5,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

18,556

 

$

11,087

 

$

7,469

 

$

2,045

 

$

5,424

 

$

-

 

$

5,424

  Entertainment Group

 

11,962

 

 

9,807

 

 

2,155

 

 

1,329

 

 

826

 

 

(1)

 

 

825

  Business Wireline

 

6,705

 

 

4,154

 

 

2,551

 

 

1,194

 

 

1,357

 

 

1

 

 

1,358

Total Communications

 

37,223

 

 

25,048

 

 

12,175

 

 

4,568

 

 

7,607

 

 

-

 

 

7,607

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

3,212

 

 

1,861

 

 

1,351

 

 

60

 

 

1,291

 

 

15

 

 

1,306

  Home Box Office

 

1,673

 

 

1,025

 

 

648

 

 

26

 

 

622

 

 

28

 

 

650

  Warner Bros.

 

4,476

 

 

3,623

 

 

853

 

 

42

 

 

811

 

 

(4)

 

 

807

  Eliminations and other

 

(129)

 

 

(39)

 

 

(90)

 

 

11

 

 

(101)

 

 

41

 

 

(60)

Total WarnerMedia

 

9,232

 

 

6,470

 

 

2,762

 

 

139

 

 

2,623

 

 

80

 

 

2,703

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

1,074

 

 

849

 

 

225

 

 

169

 

 

56

 

 

10

 

 

66

  Mexico

 

769

 

 

956

 

 

(187)

 

 

127

 

 

(314)

 

 

-

 

 

(314)

Total Latin America

 

1,843

 

 

1,805

 

 

38

 

 

296

 

 

(258)

 

 

10

 

 

(248)

Xandr

 

566

 

 

180

 

 

386

 

 

5

 

 

381

 

 

-

 

 

381

Segment Total

 

48,864

 

 

33,503

 

 

15,361

 

 

5,008

 

 

10,353

 

$

90

 

$

10,443

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

514

 

 

418

 

 

96

 

 

596

 

 

(500)

 

 

 

 

 

 

  Acquisition-related items

 

(49)

 

 

435

 

 

(484)

 

 

2,262

 

 

(2,746)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

492

 

 

(492)

 

 

26

 

 

(518)

 

 

 

 

 

 

  Eliminations and consolidations

 

(1,336)

 

 

(907)

 

 

(429)

 

 

-

 

 

(429)

 

 

 

 

 

 

AT&T Inc.

$

47,993

 

 $  

33,941

 

$

14,052

 

$

7,892

 

$

6,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


14


SUPPLEMENTAL SEGMENT RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

Dollars in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

71,056

 

 $  

40,681

 

$

30,375

 

$

8,054

 

$

22,321

 

$

(1)

 

$

22,320

  Entertainment Group

 

45,126

 

 

35,028

 

 

10,098

 

 

5,276

 

 

4,822

 

 

-

 

 

4,822

  Business Wireline

 

26,177

 

 

16,091

 

 

10,086

 

 

4,999

 

 

5,087

 

 

-

 

 

5,087

Total Communications

 

142,359

 

 

91,800

 

 

50,559

 

 

18,329

 

 

32,230

 

 

(1)

 

 

32,229

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

13,122

 

 

7,740

 

 

5,382

 

 

235

 

 

5,147

 

 

52

 

 

5,199

  Home Box Office

 

6,749

 

 

4,312

 

 

2,437

 

 

102

 

 

2,335

 

 

30

 

 

2,365

  Warner Bros.

 

14,358

 

 

11,816

 

 

2,542

 

 

162

 

 

2,380

 

 

(30)

 

 

2,350

  Eliminations and other

 

(730)

 

 

(71)

 

 

(659)

 

 

39

 

 

(698)

 

 

110

 

 

(588)

Total WarnerMedia

 

33,499

 

 

23,797

 

 

9,702

 

 

538

 

 

9,164

 

 

162

 

 

9,326

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

4,094

 

 

3,378

 

 

716

 

 

660

 

 

56

 

 

27

 

 

83

  Mexico

 

2,869

 

 

3,085

 

 

(216)

 

 

502

 

 

(718)

 

 

-

 

 

(718)

Total Latin America

 

6,963

 

 

6,463

 

 

500

 

 

1,162

 

 

(662)

 

 

27

 

 

(635)

Xandr

 

2,022

 

 

646

 

 

1,376

 

 

58

 

 

1,318

 

 

-

 

 

1,318

Segment Total

 

184,843

 

 

122,706

 

 

62,137

 

 

20,087

 

 

42,050

 

$

188

 

$

42,238

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

1,675

 

 

3,008

 

 

(1,333)

 

 

629

 

 

(1,962)

 

 

 

 

 

 

  Acquisition-related items

 

(72)

 

 

960

 

 

(1,032)

 

 

7,460

 

 

(8,492)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

2,082

 

 

(2,082)

 

 

43

 

 

(2,125)

 

 

 

 

 

 

Eliminations and consolidations

 

(5,253)

 

 

(3,735)

 

 

(1,518)

 

 

(2)

 

 

(1,516)

 

 

 

 

 

 

AT&T Inc.

$

181,193

 

$

125,021

 

$

56,172

 

$

28,217

 

$

27,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

70,521

 

$

40,690

 

$

29,831

 

$

8,263

 

$

21,568

 

$

-

 

$

21,568

  Entertainment Group

 

46,460

 

 

36,430

 

 

10,030

 

 

5,315

 

 

4,715

 

 

(2)

 

 

4,713

  Business Wireline

 

26,740

 

 

16,201

 

 

10,539

 

 

4,714

 

 

5,825

 

 

(1)

 

 

5,824

Total Communications

 

143,721

 

 

93,321

 

 

50,400

 

 

18,292

 

 

32,108

 

 

(3)

 

 

32,105

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

6,979

 

 

3,794

 

 

3,185

 

 

131

 

 

3,054

 

 

54

 

 

3,108

  Home Box Office

 

3,598

 

 

2,187

 

 

1,411

 

 

56

 

 

1,355

 

 

29

 

 

1,384

  Warner Bros.

 

8,703

 

 

7,130

 

 

1,573

 

 

96

 

 

1,477

 

 

(28)

 

 

1,449

  Eliminations and other

 

(339)

 

 

(145)

 

 

(194)

 

 

22

 

 

(216)

 

 

(30)

 

 

(246)

Total WarnerMedia

 

18,941

 

 

12,966

 

 

5,975

 

 

305

 

 

5,670

 

 

25

 

 

5,695

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

4,784

 

 

3,743

 

 

1,041

 

 

728

 

 

313

 

 

34

 

 

347

  Mexico

 

2,868

 

 

3,415

 

 

(547)

 

 

510

 

 

(1,057)

 

 

-

 

 

(1,057)

Total Latin America

 

7,652

 

 

7,158

 

 

494

 

 

1,238

 

 

(744)

 

 

34

 

 

(710)

Xandr

 

1,740

 

 

398

 

 

1,342

 

 

9

 

 

1,333

 

 

-

 

 

1,333

Segment Total

 

172,054

 

 

113,843

 

 

58,211

 

 

19,844

 

 

38,367

 

$

56

 

$

38,423

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

2,150

 

 

2,250

 

 

(100)

 

 

1,630

 

 

(1,730)

 

 

 

 

 

 

  Acquisition-related items

 

(49)

 

 

1,185

 

 

(1,234)

 

 

6,931

 

 

(8,165)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

899

 

 

(899)

 

 

26

 

 

(925)

 

 

 

 

 

 

Eliminations and consolidations

 

(3,399)

 

 

(1,947)

 

 

(1,452)

 

 

(1)

 

 

(1,451)

 

 

 

 

 

 

AT&T Inc.

$

170,756

 

 $  

116,230

 

$

54,526

 

$

28,430

 

$

26,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


15