AT&T Inc. Selected Segment Results | ||||||||||||||||||||||||||
Dollars in millions, except ARPU | ||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||
Communications Segment | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Mobility | $ | 17,363 | $ | 17,292 | $ | 17,701 | $ | 18,700 | $ | 17,402 | $ | 17,149 | $ | 17,894 | $ | 20,119 | ||||||||||
Business Wireline | 6,418 | 6,536 | 6,426 | 6,521 | 6,266 | 6,305 | 6,261 | 6,251 | ||||||||||||||||||
Consumer Wireline | 3,256 | 3,338 | 3,257 | 3,161 | 3,111 | 3,051 | 3,040 | 3,116 | ||||||||||||||||||
Total Operating Revenues | 27,037 | 27,166 | 27,384 | 28,382 | 26,779 | 26,505 | 27,195 | 29,486 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 15,990 | 15,346 | 15,915 | 17,044 | 15,335 | 14,974 | 16,063 | 19,064 | ||||||||||||||||||
Depreciation and amortization | 3,925 | 3,943 | 3,993 | 3,998 | 4,043 | 4,043 | 4,068 | 4,062 | ||||||||||||||||||
Total Operating Expenses | 19,915 | 19,289 | 19,908 | 21,042 | 19,378 | 19,017 | 20,131 | 23,126 | ||||||||||||||||||
Operating Income | $ | 7,122 | $ | 7,877 | $ | 7,476 | $ | 7,340 | $ | 7,401 | $ | 7,488 | $ | 7,064 | $ | 6,360 | ||||||||||
Operating Income Margin | 26.3 | % | 29.0 | % | 27.3 | % | 25.9 | % | 27.6 | % | 28.3 | % | 26.0 | % | 21.6 | % | ||||||||||
Mobility 1 | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Service | $ | 13,629 | $ | 13,824 | $ | 13,930 | $ | 13,948 | $ | 13,968 | $ | 13,669 | $ | 13,883 | $ | 14,022 | ||||||||||
Equipment | 3,734 | 3,468 | 3,771 | 4,752 | 3,434 | 3,480 | 4,011 | 6,097 | ||||||||||||||||||
Total Operating Revenues | 17,363 | 17,292 | 17,701 | 18,700 | 17,402 | 17,149 | 17,894 | 20,119 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 10,041 | 9,522 | 9,948 | 11,170 | 9,569 | 9,332 | 10,182 | 13,023 | ||||||||||||||||||
Depreciation and amortization | 2,013 | 2,003 | 2,011 | 2,027 | 2,045 | 2,012 | 2,021 | 2,008 | ||||||||||||||||||
Total Operating Expenses | 12,054 | 11,525 | 11,959 | 13,197 | 11,614 | 11,344 | 12,203 | 15,031 | ||||||||||||||||||
Operating Income | $ | 5,309 | $ | 5,767 | $ | 5,742 | $ | 5,503 | $ | 5,788 | $ | 5,805 | $ | 5,691 | $ | 5,088 | ||||||||||
Operating Income Margin | 30.6 | % | 33.4 | % | 32.4 | % | 29.4 | % | 33.3 | % | 33.9 | % | 31.8 | % | 25.3 | % | ||||||||||
1 As reported for the quarter ended December 31, 2020 |
1
Business Wireline | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Service | $ | 6,259 | $ | 6,358 | $ | 6,227 | $ | 6,272 | $ | 6,091 | $ | 6,101 | $ | 6,079 | $ | 6,042 | ||||||||||
Equipment | 159 | 178 | 199 | 249 | 175 | 204 | 182 | 209 | ||||||||||||||||||
Total Operating Revenues | 6,418 | 6,536 | 6,426 | 6,521 | 6,266 | 6,305 | 6,261 | 6,251 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 3,976 | 3,907 | 3,953 | 4,003 | 3,887 | 3,714 | 3,764 | 3,938 | ||||||||||||||||||
Depreciation and amortization | 1,203 | 1,225 | 1,252 | 1,245 | 1,286 | 1,301 | 1,313 | 1,316 | ||||||||||||||||||
Total Operating Expenses | 5,179 | 5,132 | 5,205 | 5,248 | 5,173 | 5,015 | 5,077 | 5,254 | ||||||||||||||||||
Operating Income | $ | 1,239 | $ | 1,404 | $ | 1,221 | $ | 1,273 | $ | 1,093 | $ | 1,290 | $ | 1,184 | $ | 997 | ||||||||||
Operating Income Margin | 19.3 | % | 21.5 | % | 19.0 | % | 19.5 | % | 17.4 | % | 20.5 | % | 18.9 | % | 15.9 | % | ||||||||||
Consumer Wireline | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
High-speed internet | $ | 2,070 | $ | 2,109 | $ | 2,117 | $ | 2,107 | $ | 2,109 | $ | 2,092 | $ | 2,128 | $ | 2,205 | ||||||||||
Legacy voice and data services | 683 | 658 | 628 | 604 | 581 | 560 | 538 | 534 | ||||||||||||||||||
Other service and equipment | 503 | 571 | 512 | 450 | 421 | 399 | 374 | 377 | ||||||||||||||||||
Total Operating Revenues | 3,256 | 3,338 | 3,257 | 3,161 | 3,111 | 3,051 | 3,040 | 3,116 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 1,973 | 1,917 | 2,014 | 1,871 | 1,879 | 1,928 | 2,117 | 2,103 | ||||||||||||||||||
Depreciation and amortization | 709 | 715 | 730 | 726 | 712 | 730 | 734 | 738 | ||||||||||||||||||
Total Operating Expenses | 2,682 | 2,632 | 2,744 | 2,597 | 2,591 | 2,658 | 2,851 | 2,841 | ||||||||||||||||||
Operating Income | $ | 574 | $ | 706 | $ | 513 | $ | 564 | $ | 520 | $ | 393 | $ | 189 | $ | 275 | ||||||||||
Operating Income Margin | 17.6 | % | 21.2 | % | 15.8 | % | 17.8 | % | 16.7 | % | 12.9 | % | 6.2 | % | 8.8 | % | ||||||||||
2
WarnerMedia Segment | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||||||||
Basic Networks | $ | 3,443 | $ | 3,410 | $ | 3,007 | $ | 3,262 | $ | 3,162 | $ | 2,988 | $ | 3,176 | $ | 3,242 | ||||||||||
Direct-to-Consumer (DTC) | 1,510 | 1,716 | 1,819 | 1,704 | 1,497 | 1,627 | 1,781 | 1,903 | ||||||||||||||||||
Theatrical, TV Content and Games Licensing | 3,518 | 3,389 | 3,333 | 4,118 | 3,240 | 3,256 | 2,411 | 3,247 | ||||||||||||||||||
Other | 461 | 534 | 548 | 688 | 536 | 397 | 538 | 798 | ||||||||||||||||||
Eliminations | (185) | (272) | (425) | (319) | (670) | (1,540) | (511) | (636) | ||||||||||||||||||
Total Segment Operating Revenues | 8,747 | 8,777 | 8,282 | 9,453 | 7,765 | 6,728 | 7,395 | 8,554 | ||||||||||||||||||
Segment Operating Expenses | ||||||||||||||||||||||||||
Direct Costs | ||||||||||||||||||||||||||
Basic Networks | 1,840 | 1,954 | 1,153 | 1,598 | 1,451 | 1,090 | 1,817 | 1,490 | ||||||||||||||||||
Direct-to-Consumer (DTC) | 789 | 999 | 960 | 1,076 | 911 | 1,361 | 1,551 | 1,629 | ||||||||||||||||||
Theatrical, TV Content and Games Licensing | 2,430 | 2,492 | 2,261 | 2,823 | 2,346 | 2,233 | 1,600 | 2,057 | ||||||||||||||||||
General and administrative | 1,080 | 1,014 | 1,031 | 1,092 | 1,222 | 917 | 914 | 1,136 | ||||||||||||||||||
Other | 122 | 130 | 141 | 163 | 161 | 106 | 109 | 140 | ||||||||||||||||||
Eliminations | (172) | (213) | (287) | (304) | (486) | (1,051) | (508) | (617) | ||||||||||||||||||
Depreciation and amortization | 155 | 102 | 163 | 169 | 161 | 164 | 169 | 177 | ||||||||||||||||||
Total Segment Operating Expenses | 6,244 | 6,478 | 5,422 | 6,617 | 5,766 | 4,820 | 5,652 | 6,012 | ||||||||||||||||||
Segment Operating Income | 2,503 | 2,299 | 2,860 | 2,836 | 1,999 | 1,908 | 1,743 | 2,542 | ||||||||||||||||||
Equity in Net Income (Loss) of Affiliates | 67 | 55 | 16 | 23 | 15 | 4 | 12 | (13) | ||||||||||||||||||
Segment Contribution | $ | 2,570 | $ | 2,354 | $ | 2,876 | $ | 2,859 | $ | 2,014 | $ | 1,912 | $ | 1,755 | $ | 2,529 | ||||||||||
Segment Operating Income Margin | 28.6 | % | 26.2 | % | 34.5 | % | 30.0 | % | 25.7 | % | 28.4 | % | 23.6 | % | 29.7 | % | ||||||||||
Total Programming and Production Costs | $ | 3,586 | $ | 3,654 | $ | 2,882 | $ | 3,826 | $ | 3,082 | $ | 2,375 | $ | 3,180 | $ | 3,040 | ||||||||||
3
Basic Networks | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Subscription | $ | 1,965 | $ | 1,943 | $ | 1,927 | $ | 1,901 | $ | 2,049 | $ | 1,804 | $ | 1,840 | $ | 1,920 | ||||||||||
Advertising | 1,261 | 1,266 | 913 | 1,126 | 957 | 796 | 1,077 | 1,111 | ||||||||||||||||||
Content and other | 217 | 201 | 167 | 235 | 156 | 388 | 259 | 211 | ||||||||||||||||||
Total Operating Revenues | $ | 3,443 | $ | 3,410 | $ | 3,007 | $ | 3,262 | $ | 3,162 | $ | 2,988 | $ | 3,176 | $ | 3,242 | ||||||||||
Direct Costs | ||||||||||||||||||||||||||
Programming costs | $ | 1,445 | $ | 1,533 | $ | 795 | $ | 1,234 | $ | 1,104 | $ | 700 | $ | 1,511 | $ | 1,118 | ||||||||||
Marketing | 160 | 158 | 117 | 140 | 131 | 125 | 128 | 134 | ||||||||||||||||||
Other | 235 | 263 | 241 | 224 | 216 | 265 | 178 | 238 | ||||||||||||||||||
Total Direct Costs | $ | 1,840 | $ | 1,954 | $ | 1,153 | $ | 1,598 | $ | 1,451 | $ | 1,090 | $ | 1,817 | $ | 1,490 | ||||||||||
4
Direct-to-Consumer (DTC) | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Subscription | $ | 1,334 | $ | 1,516 | $ | 1,533 | $ | 1,431 | $ | 1,338 | $ | 1,441 | $ | 1,624 | $ | 1,687 | ||||||||||
Content and other | 176 | 200 | 286 | 273 | 159 | 186 | 157 | 216 | ||||||||||||||||||
Total Operating Revenues | $ | 1,510 | $ | 1,716 | $ | 1,819 | $ | 1,704 | $ | 1,497 | $ | 1,627 | $ | 1,781 | $ | 1,903 | ||||||||||
Direct Costs | ||||||||||||||||||||||||||
Programming costs | $ | 482 | $ | 606 | $ | 622 | $ | 648 | $ | 585 | $ | 806 | $ | 966 | $ | 899 | ||||||||||
Marketing | 119 | 160 | 113 | 184 | 95 | 266 | 307 | 428 | ||||||||||||||||||
Other | 188 | 233 | 225 | 244 | 231 | 289 | 278 | 302 | ||||||||||||||||||
Total Direct Costs | $ | 789 | $ | 999 | $ | 960 | $ | 1,076 | $ | 911 | $ | 1,361 | $ | 1,551 | $ | 1,629 | ||||||||||
Total Subscribers (HBO Max + HBO) | 54,662 | 53,841 | 55,576 | 56,894 | 60,613 | |||||||||||||||||||||
Domestic 1 | 34,587 | 33,096 | 36,347 | 38,033 | 41,528 | |||||||||||||||||||||
HBO Max - Wholesale | — | — | 23,594 | 25,106 | 30,785 | |||||||||||||||||||||
HBO Max - Retail | — | — | 2,975 | 3,625 | 6,880 | |||||||||||||||||||||
HBO | 30,331 | 28,829 | 5,918 | 5,614 | 197 | |||||||||||||||||||||
HBO Commercial | 4,256 | 4,267 | 3,860 | 3,688 | 3,666 | |||||||||||||||||||||
International 2 | 20,075 | 20,745 | 19,229 | 18,861 | 19,085 | |||||||||||||||||||||
ARPU | ||||||||||||||||||||||||||
Domestic 3 | $11.95 | $12.32 | $11.69 | $11.43 | $11.46 | |||||||||||||||||||||
1 Domestic HBO Max and HBO Subscribers include the following categories: (1) HBO Max – Wholesale: domestic accounts that have access to HBO Max through a wholesale distributor (including AT&T’s video, broadband and mobility businesses) including wholesale subscribers that may not have signed in (2) HBO Max – Retail: domestic accounts that have access to HBO Max and are billed directly by WarnerMedia or by a third party via in-app purchase, (3) HBO: domestic accounts that do not have access to HBO Max, and (4) HBO Commercial: domestic accounts that do not have access to HBO Max and are billed on a bulk basis (e.g., hotels, etc.). Domestic HBO Max and HBO Subscribers do not include free trials or Cinemax subscribers. | ||||||||||||||||||||||||||
2 International HBO Subscribers include HBO premium pay TV and SVOD service subscribers and exclude free trials, and basic and Cinemax subscribers. | ||||||||||||||||||||||||||
3 Domestic ARPU is defined as Domestic HBO Max and HBO Subscriber revenues during the period divided by average Domestic HBO Max and HBO Subscribers during the period, excluding HBO Commercial revenues and subscribers. |
5
Theatrical, TV Content and Games Licensing | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Theatrical product | $ | 1,506 | $ | 1,527 | $ | 1,375 | $ | 1,570 | $ | 1,106 | $ | 1,029 | $ | 1,068 | $ | 1,186 | ||||||||||
Television product | 1,613 | 1,310 | 1,461 | 1,983 | 1,769 | 1,876 | 960 | 1,566 | ||||||||||||||||||
Games and other | 399 | 552 | 497 | 565 | 365 | 351 | 383 | 495 | ||||||||||||||||||
Total Operating Revenues | $ | 3,518 | $ | 3,389 | $ | 3,333 | $ | 4,118 | $ | 3,240 | $ | 3,256 | $ | 2,411 | $ | 3,247 | ||||||||||
Direct Costs | ||||||||||||||||||||||||||
Film and TV Production Costs | $ | 1,746 | $ | 1,626 | $ | 1,618 | $ | 2,103 | $ | 1,824 | $ | 1,893 | $ | 1,176 | $ | 1,592 | ||||||||||
Marketing | 425 | 543 | 400 | 427 | 300 | 153 | 219 | 215 | ||||||||||||||||||
Other | 259 | 323 | 243 | 293 | 222 | 187 | 205 | 250 | ||||||||||||||||||
Total Direct Costs | $ | 2,430 | $ | 2,492 | $ | 2,261 | $ | 2,823 | $ | 2,346 | $ | 2,233 | $ | 1,600 | $ | 2,057 | ||||||||||
Video (included in Corp & Other) | 3/31/19 | 6/30/19 | 9/30/19 | 12/31/19 | 3/31/20 | 6/30/20 | 9/30/20 | 12/31/20 | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||
Service | $ | 8,075 | $ | 8,032 | $ | 7,942 | $ | 8,074 | $ | 7,397 | $ | 6,979 | $ | 6,965 | $ | 7,124 | ||||||||||
Equipment | — | — | — | 1 | 10 | 42 | 49 | 44 | ||||||||||||||||||
Total Operating Revenues | $ | 8,075 | $ | 8,032 | $ | 7,942 | $ | 8,075 | $ | 7,407 | $ | 7,021 | $ | 7,014 | $ | 7,168 | ||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Operations and support | 6,557 | 6,606 | 6,787 | 7,325 | 6,020 | 5,809 | 5,887 | 6,458 | ||||||||||||||||||
Depreciation and amortization | 630 | 640 | 602 | 589 | 591 | 593 | 557 | 521 | ||||||||||||||||||
Total Operating Expenses | 7,187 | 7,246 | 7,389 | 7,914 | 6,611 | 6,402 | 6,444 | 6,979 | ||||||||||||||||||
Operating Income | $ | 888 | $ | 786 | $ | 553 | $ | 161 | $ | 796 | $ | 619 | $ | 570 | $ | 189 | ||||||||||
Operating Income Margin | 11.0 | % | 9.8 | % | 7.0 | % | 2.0 | % | 10.7 | % | 8.8 | % | 8.1 | % | 2.6 | % | ||||||||||
6