AT&T IncT reported third-quarter FY22 operating revenues of $30.00 billion, down 4.1% year-over-year, beating the consensus of $29.86 billion.
The decline reflected WarnerMedia and other divestments.
Excluding the impact of the divestitures, operating revenues for standalone AT&Twere up 3.1%, reflecting higher Mobility revenues.
In the Mobility segment, AT&T clocked 964 thousand postpaid net adds, 708 thousand postpaid phone net adds, and 108 thousand prepaid phone net adds.
In Mobility, it saw a Postpaid churn of 1.01%, which increased from 0.92% last year. The Consumer Wireline segment had 338 thousand of AT&T Fiber net adds.
AT&T’s adjusted EBITDA of $10.71 billion was down from $10.80 billion a year ago. The company generated $3.8 billion in free cash flow. It spent $5.9 billion on Capex.
Prepaid churnwas less than 3%, with Cricket substantially lower. Postpaid phone-only ARPUwas $55.67, up 2.4% versus the year-ago quarter, due to pricing actions, higher international roaming and a mix shift to higher-priced unlimited plans.
Operating Income: Operating income declined to $6.0 billion from $6.2 billion a year ago.
Mobility segment operating income was up 7.2% Y/Y to $6.42 billion with a margin of 31.7%. Business Wireline segment operating margin was 15.6%.
Adjusted EPS of $0.68 beat the consensus of $0.61.
Outlook: AT&T expects to achieve wireless service revenue growth in the upper end of the 4.5% – 5%. It updated Mid-band 5G spectrum end-of-year target to more than 130 million people.
“We’re investing at record levels to enhance our 5G and fiber connectivity and to deliver the best experience available in the market,” said John Stankey, AT&T CEO.
Price Action: T shares traded higher by 2.96% at $16 in the premarket on the last check Thursday.
