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T AT&T

Filed: 23 Jul 20, 8:21am

 

AT&T Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

Dollars in millions except per share amounts

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Service

$

37,051

$

41,023

 

(9.7)

%

 

$

75,934

$

81,707

 

(7.1)

%

  Equipment

 

3,899

 

3,934

 

(0.9)

%

 

 

7,795

 

8,077

 

(3.5)

%

    Total Operating Revenues

 

40,950

 

44,957

 

(8.9)

%

 

 

83,729

 

89,784

 

(6.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Equipment

 

3,978

 

4,061

 

(2.0)

%

 

 

8,070

 

8,563

 

(5.8)

%

    Broadcast, programming and operations

 

5,889

 

7,730

 

(23.8)

%

 

 

12,643

 

15,382

 

(17.8)

%

    Other cost of revenues (exclusive of

       depreciation and amortization shown

       separately below)

 

8,116

 

8,721

 

(6.9)

%

 

 

16,458

 

17,306

 

(4.9)

%

   Selling, general and administrative

 

9,831

 

9,844

 

(0.1)

%

 

 

18,591

 

19,493

 

(4.6)

%

   Impairments

 

2,319

 

-

 

-

%

 

 

2,442

 

-

 

-

%

   Depreciation and amortization

 

7,285

 

7,101

 

2.6

%

 

 

14,507

 

14,307

 

1.4

%

    Total Operating Expenses

 

37,418

 

37,457

 

(0.1)

%

 

 

72,711

 

75,051

 

(3.1)

%

Operating Income

 

3,532

 

7,500

 

(52.9)

%

 

 

11,018

 

14,733

 

(25.2)

%

Interest Expense

 

2,041

 

2,149

 

(5.0)

%

 

 

4,059

 

4,290

 

(5.4)

%

Equity in Net Income (Loss) of Affiliates

 

(10)

 

40

 

-

%

 

 

(16)

 

33

 

-

%

Other Income (Expense) - Net

 

1,017

 

(318)

 

-

%

 

 

1,820

 

(32)

 

-

%

Income Before Income Taxes

 

2,498

 

5,073

 

(50.8)

%

 

 

8,763

 

10,444

 

(16.1)

%

Income Tax Expense

 

935

 

1,099

 

(14.9)

%

 

 

2,237

 

2,122

 

5.4

%

Net Income

 

1,563

 

3,974

 

(60.7)

%

 

 

6,526

 

8,322

 

(21.6)

%

 Less: Net Income Attributable to

    Noncontrolling Interest

 

(282)

 

(261)

 

(8.0)

%

 

 

(635)

 

(513)

 

(23.8)

%

Net Income Attributable to AT&T

$

1,281

$

3,713

 

(65.5)

%

 

$

5,891

$

7,809

 

(24.6)

%

 Less: Preferred Stock Dividends

 

(52)

 

-

 

-

%

 

 

(84)

 

-

 

-

%

Net Income Attributable to Common Stock

$

1,229

$

3,713

 

(66.9)

%

 

$

5,807

$

7,809

 

(25.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share Attributable to

    Common Stock

$

0.17

$

0.51

 

(66.7)

%

 

$

0.81

$

1.06

 

(23.6)

%

Weighted Average Common

    Shares Outstanding (000,000)

 

7,145

 

7,323

 

(2.4)

%

 

 

7,166

 

7,318

 

(2.1)

%

Diluted Earnings Per Share Attributable to

    Common Stock

$

0.17

$

0.51

 

(66.7)

%

 

$

0.81

$

1.06

 

(23.6)

%

Weighted Average Common

    Shares Outstanding with Dilution (000,000)

 

7,170

 

7,353

 

(2.5)

%

 

 

7,192

 

7,347

 

(2.1)

%




AT&T Inc.

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

Dollars in millions

 

Unaudited

 

Jun. 30,

 

 

Dec. 31,

 

 

 

2020

 

 

2019

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

16,941

 

$

12,130

Accounts receivable - net of related allowances for credit loss of $1,606 and $1,235

 

19,127

 

 

22,636

Prepaid expenses

 

1,439

 

 

1,631

Other current assets

 

19,048

 

 

18,364

Total current assets

 

56,555

 

 

54,761

Noncurrent Inventories and Theatrical Film and Television Production Costs

 

14,514

 

 

12,434

Property, Plant and Equipment – Net

 

128,945

 

 

130,128

Goodwill

 

143,651

 

 

146,241

Licenses – Net

 

98,763

 

 

97,907

Trademarks and Trade Names – Net

 

23,757

 

 

23,567

Distribution Networks – Net

 

14,704

 

 

15,345

Other Intangible Assets – Net

 

18,452

 

 

20,798

Investments in and Advances to Equity Affiliates

 

2,302

 

 

3,695

Operating Lease Right-of-Use Assets

 

24,692

 

 

24,039

Other Assets

 

21,563

 

 

22,754

Total Assets

$

547,898

 

$

551,669

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Debt maturing within one year

$

15,576

 

$

11,838

Accounts payable and accrued liabilities

 

41,881

 

 

45,956

Advanced billings and customer deposits

 

5,723

 

 

6,124

Accrued taxes

 

2,548

 

 

1,212

Dividends payable

 

3,741

 

 

3,781

Total current liabilities

 

69,469

 

 

68,911

Long-Term Debt

 

153,388

 

 

151,309

Deferred Credits and Other Noncurrent Liabilities

 

 

 

 

 

Deferred income taxes

 

58,387

 

 

59,502

Postemployment benefit obligation

 

18,167

 

 

18,788

Operating lease liabilities

 

22,230

 

 

21,804

Other noncurrent liabilities

 

32,804

 

 

29,421

Total deferred credits and other noncurrent liabilities

 

131,588

 

 

129,515

Stockholders’ Equity

 

 

 

 

 

Preferred stock

-

 

 

-

Common stock

 

7,621

 

 

7,621

Additional paid-in capital

 

130,046

 

 

126,279

Retained earnings

 

56,045

 

 

57,936

Treasury stock

 

(17,945)

 

 

(13,085)

Accumulated other comprehensive income

 

129

 

 

5,470

Noncontrolling interest

 

17,557

 

 

17,713

Total stockholders’ equity

 

193,453

 

 

201,934

Total Liabilities and Stockholders' Equity

$

547,898

 

$

551,669

 

 

 

 

 

 

 




AT&T Inc.

 

 

 

 

 

Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

Dollars in millions

 

Unaudited

Six-Month Period

 

 

2020

 

 

2019

Operating Activities

 

 

 

 

 

Net income

$

6,526

 

$

8,322

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

 

 

 

 

 

 

Depreciation and amortization

 

14,507

 

 

14,307

 

Amortization of film and television costs

 

3,985

 

 

5,199

 

Undistributed earnings from investments in equity affiliates

 

64

 

 

76

 

Provision for uncollectible accounts

 

1,199

 

 

1,216

 

Deferred income tax expense (benefit)

 

653

 

 

1,080

 

Net (gain) loss on assets, net of impairments

 

(705)

 

 

(905)

 

Pension and postiretirement benefit expense (credit)

 

(1,495)

 

 

(808)

 

Actuarial (gain) loss on pension and postretirement benefits

 

-

 

 

2,131

 

Asset abandonments and impairments

 

2,442

 

 

-

Changes in operating assets and liabilities:

 

 

 

 

 

 

Receivables

 

2,522

 

 

3,584

 

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

 

(5,592)

 

 

(5,422)

 

Accounts payable and other accrued liabilities

 

(3,847)

 

 

(3,056)

 

Equipment installment receivables and related sales

 

226

 

 

1,144

 

Deferred customer contract acquisition and fulfillment costs

 

322

 

 

(614)

Postretirement claims and contributions

 

(228)

 

 

(424)

Other - net

 

346

 

 

(494)

Total adjustments

 

14,399

 

 

17,014

Net Cash Provided by Operating Activities

 

20,925

 

 

25,336

 

 

 

 

 

Investing Activities

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

Purchase of property and equipment

 

(9,372)

 

 

(10,542)

 

Interest during construction

 

(60)

 

 

(112)

Acquisitions, net of cash acquired

 

(1,174)

 

 

(320)

Dispositions

 

347

 

 

3,593

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

 

47

 

 

396

Advances to and investments in equity affiliates, net

 

(66)

 

 

(314)

Net Cash Used in Investing Activities

 

(10,278)

 

 

(7,299)

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

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

 

498

 

 

119

Issuance of other short-term borrowings

 

8,440

 

 

3,067

Repayment of other short-term borrowings

 

(5,975)

 

 

(3,148)

Issuance of long-term debt

 

21,060

 

 

10,030

Repayment of long-term debt

 

(17,284)

 

 

(16,124)

Payment of vendor financing

 

(1,354)

 

 

(1,836)

Issuance of preferred stock

 

3,869

 

 

-

Purchase of treasury stock

 

(5,480)

 

 

(240)

Issuance of treasury stock

 

84

 

 

455

Dividends paid

 

(7,474)

 

 

(7,436)

Other

 

(2,295)

 

 

330

Net Cash Used in Financing Activities

 

(5,911)

 

 

(14,783)

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

 

4,736

 

 

3,254

Cash and cash equivalents and restricted cash beginning of year

 

12,295

 

 

5,400

Cash and Cash Equivalents and Restricted Cash End of Period

$

17,031

 

$

8,654

 

 

 

 

 

 

 


 

AT&T Inc.

Consolidated Supplementary Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Financial Data

Dollars in millions except per share amounts

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

$

4,434

$

5,421

 

(18.2)

%

 

$

9,372

$

10,542

 

(11.1)

%

 

Interest during construction

 

32

 

51

 

(37.3)

%

 

 

60

 

112

 

(46.4)

%

Total Capital Expenditures

$

4,466

$

5,472

 

(18.4)

%

 

$

9,432

$

10,654

 

(11.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared per Common Share

$

0.52

$

0.51

 

2.0

%

 

$

1.04

$

1.02

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of Period Common Shares

     Outstanding (000,000)

 

 

 

 

 

 

 

 

 

7,125

 

7,305

 

(2.5)

%

Debt Ratio

 

 

 

 

 

 

 

 

 

46.6

%

46.8

%

(20)

BP

Total Employees

 

 

 

 

 

 

 

 

 

243,350

 

257,790

 

(5.6)

%

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

Change

Broadband Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

 

 

 

 

 

 

 

 

14,548

 

14,860

 

(2.1)

%

 

DSL

 

 

 

 

 

 

 

 

 

653

 

838

 

(22.1)

%

Total Broadband Connections

 

 

 

 

 

 

 

 

 

15,201

 

15,698

 

(3.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Access Lines

 

 

 

 

 

 

 

 

 

7,878

 

9,207

 

(14.4)

%

 

U-verse VoIP Connections

 

 

 

 

 

 

 

 

 

4,058

 

4,766

 

(14.9)

%

Total Retail Voice Connections

 

 

 

 

 

 

 

 

 

11,936

 

13,973

 

(14.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Broadband Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IP

 

(79)

 

8

 

-

 

 

 

(111)

 

108

 

-

%

 

DSL

 

(35)

 

(47)

 

25.5

 

 

 

(77)

 

(111)

 

30.6

%

Total Broadband Net Additions

 

(114)

 

(39)

 

-

 

 

 

(188)

 

(3)

 

-

%




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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility

 $  

17,149

 $  

17,292

 

(0.8)

 %  

 

 $  

34,551

 $  

34,655

 

(0.3)

 %  

 

Entertainment Group

 

10,069

 

11,368

 

(11.4)

%

 

 

20,584

 

22,696

 

(9.3)

%

 

Business Wireline

 

6,374

 

6,607

 

(3.5)

 %  

 

 

12,706

 

13,085

 

(2.9)

 %  

    Total Segment Operating Revenues

 

33,592

 

35,267

 

(4.7)

%

 

 

67,841

 

70,436

 

(3.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility

 

5,805

 

5,767

 

0.7

 %  

 

 

11,593

 

11,076

 

4.7

 %  

 

Entertainment Group

 

1,030

 

1,514

 

(32.0)

%

 

 

2,365

 

2,992

 

(21.0)

%

 

Business Wireline

 

1,277

 

1,390

 

(8.1)

 %  

 

 

2,357

 

2,614

 

(9.8)

 %  

    Total Segment Operating

         Contribution

$

8,112

$

8,671

 

(6.4)

%

 

$

16,315

$

16,682

 

(2.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Mobility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility provides nationwide wireless service and equipment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobility Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service

$

13,669

 $  

13,824

 

(1.1)

 %  

 

 $  

27,637

 $  

27,453

 

0.7

 %  

Equipment

 

3,480

 

3,468

 

0.3

%

 

 

6,914

 

7,202

 

(4.0)

%

    Total Operating Revenues

 

17,149

 

17,292

 

(0.8)

 %  

 

 

34,551

 

34,655

 

(0.3)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

9,332

 

9,522

 

(2.0)

%

 

 

18,901

 

19,563

 

(3.4)

%

Depreciation and amortization

 

2,012

 

2,003

 

0.4

 %  

 

 

4,057

 

4,016

 

1.0

 %  

    Total Operating Expenses

 

11,344

 

11,525

 

(1.6)

%

 

 

22,958

 

23,579

 

(2.6)

%

Operating Income

 

5,805

 

5,767

 

0.7

 %  

 

 

11,593

 

11,076

 

4.7

 %  

Equity in Net Income (Loss) of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

Operating Contribution

$

5,805

$

5,767

 

0.7

 %  

 

$

11,593

$

11,076

 

4.7

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

33.9

%

33.4

%

50

 BP  

 

 

33.6

%

32.0

%

160

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

Unaudited

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

Change

Mobility Subscribers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

 

 

 

 

 

 

 

 

74,919

 

75,478

 

(0.7)

%

Prepaid

 

 

 

 

 

 

 

 

 

18,008

 

17,434

 

3.3

%

Reseller

 

 

 

 

 

 

 

 

 

6,718

 

7,323

 

(8.3)

%

Connected Devices

 

 

 

 

 

 

 

 

 

71,762

 

58,387

 

22.9

%

Total Mobility Subscribers1

 

 

 

 

 

 

 

 

 

171,407

 

158,622

 

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

Six-Month Period

Percent

 

 

2020

 

2019

 

 

 

 

 

2020

 

2019

 

Change

Mobility Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Phone Net Additions

 

(151)

 

74

 

-

%

 

 

12

 

153

 

(92.2)

%

Total Phone Net Additions

 

(16)

 

357

 

-

%

 

 

104

 

525

 

(80.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

(154)

 

(146)

 

(5.5)

%

 

 

(127)

 

(353)

 

64.0

%

Prepaid

 

165

 

341

 

(51.6)

%

 

 

120

 

442

 

(72.9)

%

Reseller

 

(58)

 

(204)

 

71.6

%

 

 

(248)

 

(446)

 

44.4

%

Connected Devices

 

2,255

 

3,959

 

(43.0)

%

 

 

5,773

 

7,047

 

(18.1)

%

Total Mobility Net Additions1

 

2,208

 

3,950

 

(44.1)

%

 

 

5,518

 

6,690

 

(17.5)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid Churn1

 

1.05

%

1.07

%

(2)

BP

 

 

1.06

%

1.12

%

(6)

BP

Postpaid Phone-Only Churn1

 

0.84

%

0.86

%

(2)

BP

 

 

0.85

%

0.89

%

(4)

BP

1

The second quarter and six-month period ended June 30, 2020, excludes 466 (338 phone) and 521 (382 phone) customers, respectively, who

 

we have agreed not to terminate service under the FCC’s “Keep Americans Connected Pledge.”




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

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

 

 Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video entertainment

$

6,976

$

8,035

 

(13.2)

%

 

$

14,371

$

16,109

 

(10.8)

%

 

High-speed internet

 

2,092

 

2,109

 

(0.8)

%

 

 

4,201

 

4,179

 

0.5

%

 

Legacy voice and data services

 

560

 

658

 

(14.9)

%

 

 

1,141

 

1,341

 

(14.9)

%

 

Other service and equipment

 

441

 

566

 

(22.1)

%

 

 

871

 

1,067

 

(18.4)

%

 

Total Operating Revenues

 

10,069

 

11,368

 

(11.4)

%

 

 

20,584

 

22,696

 

(9.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

7,730

 

8,515

 

(9.2)

%

 

 

15,621

 

17,042

 

(8.3)

%

 

Depreciation and amortization

 

1,309

 

1,339

 

(2.2)

%

 

 

2,598

 

2,662

 

(2.4)

%

 

Total Operating Expenses

 

9,039

 

9,854

 

(8.3)

%

 

 

18,219

 

19,704

 

(7.5)

%

 

Operating Income

 

1,030

 

1,514

 

(32.0)

%

 

 

2,365

 

2,992

 

(21.0)

%

 

Equity in Net Income (Loss) of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

 

Operating Contribution

$

1,030

$

1,514

 

(32.0)

%

 

$

2,365

$

2,992

 

(21.0)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

10.2

%

13.3

%

(310)

BP

 

 

11.5

%

13.2

%

(170)

BP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

 

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

Change

 

Video Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium TV

 

 

 

 

 

 

 

 

 

17,690

 

21,581

 

(18.0)

%

 

AT&T TV Now

 

 

 

 

 

 

 

 

 

720

 

1,340

 

(46.3)

%

 

Total Video Connections

 

 

 

 

 

 

 

 

 

18,410

 

22,921

 

(19.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Broadband Connections

 

 

 

 

 

 

 

 

 

13,944

 

14,420

 

(3.3)

%

 

Fiber Broadband Connections

 

 

 

 

 

 

 

 

 

4,321

 

3,378

 

27.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail Consumer Switched Access Lines

 

 

 

 

 

 

 

 

 

3,096

 

3,630

 

(14.7)

%

 

U-verse Consumer VoIP Connections

 

 

 

 

 

 

 

 

 

3,480

 

4,211

 

(17.4)

%

 

Total Retail Consumer Voice Connections1

 

 

 

 

 

 

 

 

 

6,576

 

7,841

 

(16.1)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

 

Video Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium TV1

 

(886)

 

(778)

 

(13.9)

%

 

 

(1,783)

 

(1,322)

 

(34.9)

%

 

AT&T TV Now

 

(68)

 

(168)

 

59.5

%

 

 

(206)

 

(251)

 

17.9

%

 

Total Video Net Additions1

 

(954)

 

(946)

 

(0.8)

%

 

 

(1,989)

 

(1,573)

 

(26.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband Net Additions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Broadband Net Additions1

 

(102)

 

(34)

 

-

%

 

 

(175)

 

11

 

-

%

 

Fiber Broadband Net Additions

 

225

 

318

 

(29.2)

%

 

 

434

 

615

 

(29.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

The second quarter and six-month period ended June 30, 2020, excludes 91 and 157 premium TV  and 159 and 194 broadband connections,

 

 

respectively, who we have agreed not to terminate service under the FCC's "Keep Americans Connected Pledge."

 
                 

 


Business Wireline

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Wireline unit provides advanced IP-based services, as well as traditional data services to business customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Wireline Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic and managed services

 $  

3,943

 $  

3,834

 

2.8

 %  

 

 $  

7,822

 $  

7,613

 

2.7

 %  

 

Legacy voice and data services

 

2,067

 

2,324

 

(11.1)

%

 

 

4,196

 

4,721

 

(11.1)

%

 

Other service and equipment

 

364

 

449

 

(18.9)

 %  

 

 

688

 

751

 

(8.4)

 %  

    Total Operating Revenues

 

6,374

 

6,607

 

(3.5)

%

 

 

12,706

 

13,085

 

(2.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

3,779

 

3,975

 

(4.9)

 %  

 

 

7,730

 

8,007

 

(3.5)

 %  

Depreciation and amortization

 

1,318

 

1,242

 

6.1

%

 

 

2,619

 

2,464

 

6.3

%

    Total Operating Expenses

 

5,097

 

5,217

 

(2.3)

 %  

 

 

10,349

 

10,471

 

(1.2)

 %  

Operating Income

 

1,277

 

1,390

 

(8.1)

%

 

 

2,357

 

2,614

 

(9.8)

%

Equity in Net Income (Loss) of Affiliates

 

-

 

-

 

-

 %  

 

 

-

 

-

 

-

 %  

Operating Contribution

$

1,277

$

1,390

 

(8.1)

%

 

$

2,357

$

2,614

 

(9.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

20.0

%

21.0

%

(100)

BP

 

 

18.6

%

20.0

%

(140)

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 classification of consumer and business wireless subscribers.

 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Solutions Results

 

Dollars in millions

 

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless service

 $  

1,884

 $  

1,881

 

0.2

 %  

 

 $  

3,833

 $  

3,658

 

4.8

 %  

 

 

Strategic and managed services

 

3,943

 

3,834

 

2.8

%

 

 

7,822

 

7,613

 

2.7

%

 

 

Legacy voice and data services

 

2,067

 

2,324

 

(11.1)

 %  

 

 

4,196

 

4,721

 

(11.1)

 %  

 

 

Other service and equipment

 

364

 

449

 

(18.9)

%

 

 

688

 

751

 

(8.4)

%

 

 

Wireless equipment

 

585

 

617

 

(5.2)

 %  

 

 

1,295

 

1,207

 

7.3

 %  

 

    Total Operating Revenues

 

8,843

 

9,105

 

(2.9)

%

 

 

17,834

 

17,950

 

(0.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

5,424

 

5,512

 

(1.6)

 %  

 

 

11,134

 

11,126

 

0.1

 %  

 

Depreciation and amortization

 

1,637

 

1,545

 

6.0

%

 

 

3,262

 

3,070

 

6.3

%

 

    Total Operating Expenses

 

7,061

 

7,057

 

0.1

 %  

 

 

14,396

 

14,196

 

1.4

 %  

 

Operating Income

 

1,782

 

2,048

 

(13.0)

%

 

 

3,438

 

3,754

 

(8.4)

%

 

Equity in Net Income (Loss) of Affiliates

 

-

 

-

 

-

 %  

 

 

-

 

-

 

-

 %  

 

Operating Contribution

$

1,782

$

2,048

 

(13.0)

%

 

$

3,438

$

3,754

 

(8.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

20.2

%

22.5

%

(230)

BP

 

 

19.3

%

20.9

%

(160)

BP

 

 


 

WARNERMEDIA SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content in various physical and digital formats globally, and also includes our Xandr business, which utilizes data analytics to provide targeted advertising services. Results from Turner, Home Box Office and Warner Bros. businesses are combined with AT&T's Regional Sports Network (RSN), Otter Media Holdings and Xandr in the WarnerMedia segment. All previously reported periods have been recast to include Xandr, which was a separate reportable segment prior to the second quarter of 2020.

 

Segment Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turner

$

2,988

 $  

3,410

 

(12.4)

 %  

 

$

6,150

 $  

6,853

 

(10.3)

 %  

 

HBO

 

1,627

 

1,716

 

(5.2)

%

 

 

3,124

 

3,226

 

(3.2)

%

 

Warner Bros.

 

3,256

 

3,389

 

(3.9)

 %  

 

 

6,496

 

6,907

 

(6.0)

 %  

 

Eliminations and other

 

(1,057)

 

320

 

-

%

 

 

(1,108)

 

654

 

-

%

    Total Segment Operating Revenues

 

6,814

 

8,835

 

(22.9)

 %  

 

 

14,662

 

17,640

 

(16.9)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turner

 

965

 

1,796

 

(46.3)

 %  

 

 

2,285

 

3,476

 

(34.3)

 %  

 

HBO

 

1,095

 

839

 

30.5

%

 

 

1,911

 

1,509

 

26.6

%

 

Warner Bros.

 

2,233

 

2,492

 

(10.4)

 %  

 

 

4,579

 

4,922

 

(7.0)

 %  

Selling, general and administrative

 

1,324

 

1,344

 

(1.5)

%

 

 

2,788

 

2,716

 

2.7

%

Eliminations and other

 

(883)

 

(35)

 

-

 %  

 

 

(1,142)

 

(34)

 

-

 %  

Depreciation and amortization

 

167

 

104

 

60.6

%

 

 

330

 

260

 

26.9

%

Total Operating Expenses

 

4,901

 

6,540

 

(25.1)

 %  

 

 

10,751

 

12,849

 

(16.3)

 %  

Operating Income

 

1,913

 

2,295

 

(16.6)

%

 

 

3,911

 

4,791

 

(18.4)

%

Equity in Net Income of Affiliates

 

4

 

55

 

(92.7)

 %  

 

 

19

 

122

 

(84.4)

 %  

    Total Segment Operating Contribution

$

1,917

$

2,350

 

(18.4)

%

 

$

3,930

$

4,913

 

(20.0)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Turner

 

Turner 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

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Subscription

$

1,804

$

1,943

 

(7.2)

 %  

 

$

3,853

$

3,908

 

(1.4)

 %  

 

 

Advertising

 

796

 

1,266

 

(37.1)

%

 

 

1,753

 

2,527

 

(30.6)

%

 

 

Content and other

 

388

 

201

 

93.0

 %  

 

 

544

 

418

 

30.1

 %  

 

    Total Operating Revenues

 

2,988

 

3,410

 

(12.4)

%

 

 

6,150

 

6,853

 

(10.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

965

 

1,796

 

(46.3)

 %  

 

 

2,285

 

3,476

 

(34.3)

 %  

 

 

Selling, general and administrative

 

382

 

421

 

(9.3)

%

 

 

772

 

877

 

(12.0)

%

 

 

Depreciation and amortization

 

69

 

39

 

76.9

 %  

 

 

138

 

99

 

39.4

 %  

 

    Total Operating Expenses

 

1,416

 

2,256

 

(37.2)

%

 

 

3,195

 

4,452

 

(28.2)

%

 

Operating Income

 

1,572

 

1,154

 

36.2

 %  

 

 

2,955

 

2,401

 

23.1

 %  

 

Equity in Net Income of Affiliates

 

-

 

11

 

-

%

 

 

6

 

36

 

(83.3)

%

 

Operating Contribution

$

1,572

$

1,165

 

34.9

 %  

 

$

2,961

$

2,437

 

21.5

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

52.6

%

33.8

%

1,880

BP

 

 

48.0

%

35.0

%

1,300

BP

 

 



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

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Subscription

$

1,441

$

1,516

 

(4.9)

 %  

 

$

2,779

$

2,850

 

(2.5)

 %  

 

 

Content and other

 

186

 

200

 

(7.0)

%

 

 

345

 

376

 

(8.2)

%

 

Total Operating Revenues

 

1,627

 

1,716

 

(5.2)

 %  

 

 

3,124

 

3,226

 

(3.2)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

1,095

 

839

 

30.5

 %  

 

 

1,911

 

1,509

 

26.6

 %  

 

 

Selling, general and administrative

 

394

 

292

 

34.9

%

 

 

631

 

543

 

16.2

%

 

 

Depreciation and amortization

 

25

 

12

 

-

 %  

 

 

46

 

34

 

35.3

 %  

 

    Total Operating Expenses

 

1,514

 

1,143

 

32.5

%

 

 

2,588

 

2,086

 

24.1

%

 

Operating Income

 

113

 

573

 

(80.3)

 %  

 

 

536

 

1,140

 

(53.0)

 %  

 

Equity in Net Income (Loss) of Affiliates

 

(5)

 

15

 

-

%

 

 

15

 

30

 

(50.0)

%

 

Operating Contribution

$

108

$

588

 

(81.6)

 %  

 

$

551

$

1,170

 

(52.9)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

6.9

%

33.4

%

(2,650)

BP

 

 

17.2

%

35.3

%

(1,810)

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

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

 

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Theatrical product

$

1,029

$

1,527

 

(32.6)

 %  

 

$

2,135

$

3,033

 

(29.6)

 %  

 

 

Television product

 

1,876

 

1,310

 

43.2

%

 

 

3,645

 

2,923

 

24.7

%

 

 

Video games and other

 

351

 

552

 

(36.4)

 %  

 

 

716

 

951

 

(24.7)

 %  

 

    Total Operating Revenues

 

3,256

 

3,389

 

(3.9)

%

 

 

6,496

 

6,907

 

(6.0)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

2,233

 

2,492

 

(10.4)

 %  

 

 

4,579

 

4,922

 

(7.0)

 %  

 

 

Selling, general and administrative

 

350

 

426

 

(17.8)

%

 

 

954

 

915

 

4.3

%

 

 

Depreciation and amortization

 

40

 

31

 

29.0

 %  

 

 

81

 

83

 

(2.4)

 %  

 

    Total Operating Expenses

 

2,623

 

2,949

 

(11.1)

%

 

 

5,614

 

5,920

 

(5.2)

%

 

Operating Income

 

633

 

440

 

43.9

 %  

 

 

882

 

987

 

(10.6)

 %  

 

Equity in Net Income (Loss) of Affiliates

 

(19)

 

-

 

-

%

 

 

(27)

 

6

 

-

%

 

Operating Contribution

$

614

$

440

 

39.5

 %  

 

$

855

$

993

 

(13.9)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

19.4

%

13.0

%

640

BP

 

 

13.6

%

14.3

%

(70)

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

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Segment Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vrio

$

752

 $  

1,032

 

(27.1)

 %  

 

$

1,639

 $  

2,099

 

(21.9)

 %  

 

Mexico

 

480

 

725

 

(33.8)

%

 

 

1,183

 

1,376

 

(14.0)

%

    Total Segment Operating Revenues

 

1,232

 

1,757

 

(29.9)

 %  

 

 

2,822

 

3,475

 

(18.8)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Operating Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vrio

 

(28)

 

(2)

 

-

%

 

 

(67)

 

30

 

-

%

 

Mexico

 

(173)

 

(207)

 

16.4

 %  

 

 

(318)

 

(412)

 

22.8

 %  

    Total Segment Operating Contribution

$

(201)

$

(209)

 

3.8

%

 

$

(385)

$

(382)

 

(0.8)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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

 

 

2020

 

2019

 

Change

 

2020

2019

Change

Operating Revenues

$

752

$

1,032

 

(27.1)

 %  

 

$

1,639

$

2,099

 

(21.9)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

661

 

881

 

(25.0)

%

 

 

1,444

 

1,747

 

(17.3)

%

Depreciation and amortization

 

127

 

165

 

(23.0)

 %  

 

 

274

 

334

 

(18.0)

 %  

Total Operating Expenses

 

788

 

1,046

 

(24.7)

%

 

 

1,718

 

2,081

 

(17.4)

%

Operating Income

 

(36)

 

(14)

 

-

 %  

 

 

(79)

 

18

 

-

 %  

Equity in Net Income of Affiliates

 

8

 

12

 

(33.3)

%

 

 

12

 

12

 

-

%

Operating Contribution

$

(28)

$

(2)

 

-

 %  

 

$

(67)

$

30

 

-

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

(4.8)

%

(1.4)

%

(340)

 BP  

 

 

(4.8)

%

0.9

%

(570)

 BP  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

2020

2019

Change

Vrio Video Subscribers

 

 

 

 

 

 

 

 

 

10,664

 

13,473

 

(20.8)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2020

 

2019

 

Change

 

2020

2019

Change

Vrio Video Net Additions1

 

(312)

 

(111)

 

-

 %  

 

 

(426)

 

(143)

 

-

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

The second-quarter and six-month period ended June 30, 2020, exclude the impact of 2.2 million subscriber disconnections resulting

 

from the closure of our DIRECTV operations in Venezuela.

                 

 

Mexico

 

 Mexico provides wireless services and equipment to customers in Mexico.

 

Mexico Results

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2020

 

2019

 

Change

 

2020

2019

Change

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

Wireless service

$

345

$

479

 

(28.0)

%

 

$

812

$

921

 

(11.8)

%

Wireless equipment

 

135

 

246

 

(45.1)

%

 

 

371

 

455

 

(18.5)

%

    Total Operating Revenues

 

480

 

725

 

(33.8)

 %  

 

 

1,183

 

1,376

 

(14.0)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations and support

 

538

 

813

 

(33.8)

%

 

 

1,252

 

1,538

 

(18.6)

%

Depreciation and amortization

 

115

 

119

 

(3.4)

 %  

 

 

249

 

250

 

(0.4)

 %  

    Total Operating Expenses

 

653

 

932

 

(29.9)

%

 

 

1,501

 

1,788

 

(16.1)

%

Operating Income (Loss)

 

(173)

 

(207)

 

16.4

 %  

 

 

(318)

 

(412)

 

22.8

 %  

Equity in Net Income of Affiliates

 

-

 

-

 

-

%

 

 

-

 

-

 

-

%

Operating Contribution

$

(173)

$

(207)

 

16.4

 %  

 

$

(318)

$

(412)

 

22.8

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income Margin

 

(36.0)

%

(28.6)

%

(740)

 BP  

 

 

(26.9)

%

(29.9)

%

300

 BP  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplementary Operating Data

Subscribers and connections in thousands

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

June 30,

Percent

 

 

 

 

 

 

 

 

2020

2019

Change

Mexico Wireless Subscribers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

 

 

 

 

 

 

 

 

4,771

 

5,489

 

(13.1)

 %  

Prepaid

 

 

 

 

 

 

 

 

 

12,777

 

12,180

 

4.9

%

Reseller

 

 

 

 

 

 

 

 

 

425

 

352

 

20.7

 %  

Total Mexico Wireless Subscribers

 

 

 

 

 

 

 

 

 

17,973

 

18,021

 

(0.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

2020

 

2019

 

Change

 

2020

2019

 

Change

Mexico Wireless Net Additions1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

(191)

 

(153)

 

(24.8)

 %  

 

 

(332)

 

(222)

 

(49.5)

 %  

Prepaid

 

(915)

 

401

 

-

%

 

 

(807)

 

515

 

-

%

Reseller

 

21

 

51

 

(58.8)

 %  

 

 

53

 

99

 

(46.5)

 %  

Total Mexico Wireless Net Additions

 

(1,085)

 

299

 

-

%

 

 

(1,086)

 

392

 

-

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

The second-quarter and six-month period ended June 30, 2020, exclude the impact of 101 subscriber disconnections resulting from

 

conforming our policy on reporting of fixed wireless resellers.

                 


Supplemental AT&T Advertising Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a supplemental presentation, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising Revenues

Dollars in millions

 

 

 

 

 

 

 

Unaudited

Second Quarter

Percent

 

Six-Month Period

Percent

 

 

 

2020

 

2019

 

Change

 

 

2020

 

2019

 

Change

Operating Revenues

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

Turner

$

796

$

1,266

 

(37.1)

%

 

$

1,753

$

2,527

 

(30.6)

%

 

Entertainment Group

 

294

 

399

 

(26.3)

 %  

 

 

707

 

749

 

(5.6)

 %  

 

Xandr

 

362

 

485

 

(25.4)

%

 

 

851

 

911

 

(6.6)

%

 

Other

 

75

 

90

 

(16.7)

 %  

 

 

173

 

175

 

(1.1)

 %  

 

Eliminations

 

(294)

 

(399)

 

26.3

%

 

 

(707)

 

(749)

 

5.6

%

    Total Advertising Revenues

$

1,233

$

1,841

 

(33.0)

 %  

 

$

2,777

$

3,613

 

(23.1)

 %  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

SUPPLEMENTAL SEGMENT RECONCILIATION


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Dollars in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

17,149

 

$

9,332

 

$

7,817

 

$

2,012

 

$

5,805

 

$

-

 

$

5,805

  Entertainment Group

 

10,069

 

 

7,730

 

 

2,339

 

 

1,309

 

 

1,030

 

 

-

 

 

1,030

  Business Wireline

 

6,374

 

 

3,779

 

 

2,595

 

 

1,318

 

 

1,277

 

 

-

 

 

1,277

Total Communications

 

33,592

 

 

20,841

 

 

12,751

 

 

4,639

 

 

8,112

 

 

-

 

 

8,112

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

2,988

 

 

1,347

 

 

1,641

 

 

69

 

 

1,572

 

 

-

 

 

1,572

  Home Box Office

 

1,627

 

 

1,489

 

 

138

 

 

25

 

 

113

 

 

(5)

 

 

108

  Warner Bros.

 

3,256

 

 

2,583

 

 

673

 

 

40

 

 

633

 

 

(19)

 

 

614

  Eliminations and other

 

(1,057)

 

 

(685)

 

 

(372)

 

 

33

 

 

(405)

 

 

28

 

 

(377)

Total WarnerMedia

 

6,814

 

 

4,734

 

 

2,080

 

 

167

 

 

1,913

 

 

4

 

 

1,917

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

752

 

 

661

 

 

91

 

 

127

 

 

(36)

 

 

8

 

 

(28)

  Mexico

 

480

 

 

538

 

 

(58)

 

 

115

 

 

(173)

 

 

-

 

 

(173)

Total Latin America

 

1,232

 

 

1,199

 

 

33

 

 

242

 

 

(209)

 

 

8

 

 

(201)

Segment Total

 

41,638

 

 

26,774

 

 

14,864

 

 

5,048

 

 

9,816

 

$

12

 

$

9,828

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

437

 

 

933

 

 

(496)

 

 

93

 

 

(589)

 

 

 

 

 

 

  Acquisition-related items

 

-

 

 

211

 

 

(211)

 

 

2,145

 

 

(2,356)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

3,084

 

 

(3,084)

 

 

-

 

 

(3,084)

 

 

 

 

 

 

  Eliminations and consolidations

 

(1,125)

 

 

(869)

 

 

(256)

 

 

(1)

 

 

(255)

 

 

 

 

 

 

AT&T Inc.

$

40,950

 

$

30,133

 

$

10,817

 

$

7,285

 

$

3,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

17,292

 

$

9,522

 

$

7,770

 

$

2,003

 

$

5,767

 

$

-

 

$

5,767

  Entertainment Group

 

11,368

 

 

8,515

 

 

2,853

 

 

1,339

 

 

1,514

 

 

-

 

 

1,514

  Business Wireline

 

6,607

 

 

3,975

 

 

2,632

 

 

1,242

 

 

1,390

 

 

-

 

 

1,390

Total Communications

 

35,267

 

 

22,012

 

 

13,255

 

 

4,584

 

 

8,671

 

 

-

 

 

8,671

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

3,410

 

 

2,217

 

 

1,193

 

 

39

 

 

1,154

 

 

11

 

 

1,165

  Home Box Office

 

1,716

 

 

1,131

 

 

585

 

 

12

 

 

573

 

 

15

 

 

588

  Warner Bros.

 

3,389

 

 

2,918

 

 

471

 

 

31

 

 

440

 

 

-

 

 

440

  Eliminations and other

 

320

 

 

170

 

 

150

 

 

22

 

 

128

 

 

29

 

 

157

Total WarnerMedia

 

8,835

 

 

6,436

 

 

2,399

 

 

104

 

 

2,295

 

 

55

 

 

2,350

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)

Segment Total

 

45,859

 

 

30,142

 

 

15,717

 

 

4,972

 

 

10,745

 

$

67

 

$

10,812

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

450

 

 

765

 

 

(315)

 

 

170

 

 

(485)

 

 

 

 

 

 

  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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




SUPPLEMENTAL SEGMENT RECONCILIATION


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

Dollars in millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

Operations and Support Expenses

 

 

EBITDA

 

 

Depreciation and Amortization

 

 

Operating Income (Loss)

 

 

Equity in Net Income (Loss) of Affiliates

 

 

Segment Contribution

Communications

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Mobility

$

34,551

 

 $  

18,901

 

$

15,650

 

$

4,057

 

$

11,593

 

$

-

 

$

11,593

  Entertainment Group

 

20,584

 

 

15,621

 

 

4,963

 

 

2,598

 

 

2,365

 

 

-

 

 

2,365

  Business Wireline

 

12,706

 

 

7,730

 

 

4,976

 

 

2,619

 

 

2,357

 

 

-

 

 

2,357

Total Communications

 

67,841

 

 

42,252

 

 

25,589

 

 

9,274

 

 

16,315

 

 

-

 

 

16,315

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

6,150

 

 

3,057

 

 

3,093

 

 

138

 

 

2,955

 

 

6

 

 

2,961

  Home Box Office

 

3,124

 

 

2,542

 

 

582

 

 

46

 

 

536

 

 

15

 

 

551

  Warner Bros.

 

6,496

 

 

5,533

 

 

963

 

 

81

 

 

882

 

 

(27)

 

 

855

  Eliminations and other

 

(1,108)

 

 

(711)

 

 

(397)

 

 

65

 

 

(462)

 

 

25

 

 

(437)

Total WarnerMedia

 

14,662

 

 

10,421

 

 

4,241

 

 

330

 

 

3,911

 

 

19

 

 

3,930

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Vrio

 

1,639

 

 

1,444

 

 

195

 

 

274

 

 

(79)

 

 

12

 

 

(67)

  Mexico

 

1,183

 

 

1,252

 

 

(69)

 

 

249

 

 

(318)

 

 

-

 

 

(318)

Total Latin America

 

2,822

 

 

2,696

 

 

126

 

 

523

 

 

(397)

 

 

12

 

 

(385)

Segment Total

 

85,325

 

 

55,369

 

 

29,956

 

 

10,127

 

 

19,829

 

$

31

 

$

19,860

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

825

 

 

1,807

 

 

(982)

 

 

180

 

 

(1,162)

 

 

 

 

 

 

  Acquisition-related items

 

-

 

 

393

 

 

(393)

 

 

4,201

 

 

(4,594)

 

 

 

 

 

 

  Certain significant items

 

-

 

 

2,426

 

 

(2,426)

 

 

-

 

 

(2,426)

 

 

 

 

 

 

Eliminations and consolidations

 

(2,421)

 

 

(1,791)

 

 

(630)

 

 

(1)

 

 

(629)

 

 

 

 

 

 

AT&T Inc.

$

83,729

 

 $  

58,204

 

$

25,525

 

$

14,507

 

$

11,018

 

 

 

 

 

 

                     

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

$

34,655

 

 $  

19,563

 

$

15,092

 

$

4,016

 

$

11,076

 

$

-

 

$

11,076

  Entertainment Group

 

22,696

 

 

17,042

 

 

5,654

 

 

2,662

 

 

2,992

 

 

-

 

 

2,992

  Business Wireline

 

13,085

 

 

8,007

 

 

5,078

 

 

2,464

 

 

2,614

 

 

-

 

 

2,614

Total Communications

 

70,436

 

 

44,612

 

 

25,824

 

 

9,142

 

 

16,682

 

 

-

 

 

16,682

WarnerMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Turner

 

6,853

 

 

4,353

 

 

2,500

 

 

99

 

 

2,401

 

 

36

 

 

2,437

  Home Box Office

 

3,226

 

 

2,052

 

 

1,174

 

 

34

 

 

1,140

 

 

30

 

 

1,170

  Warner Bros.

 

6,907

 

 

5,837

 

 

1,070

 

 

83

 

 

987

 

 

6

 

 

993

  Eliminations and other

 

654

 

 

347

 

 

307

 

 

44

 

 

263

 

 

50

 

 

313

Total WarnerMedia

 

17,640

 

 

12,589

 

 

5,051

 

 

260

 

 

4,791

 

 

122

 

 

4,913

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)

Segment Total

 

91,551

 

 

60,486

 

 

31,065

 

 

9,986

 

 

21,079

 

$

134

 

$

21,213

Corporate and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Corporate

 

883

 

 

1,426

 

 

(543)

 

 

374

 

 

(917)

 

 

 

 

 

 

  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