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AT&T Inc. reported strong fourth-quarter and full-year results that showcased solid momentum in gaining and retaining profitable 5G and fiber subscribers. The Company met all 2024 consolidated financial guidance and reiterates all financial and operational guidance for 2025 and beyond that was shared at its recent Analyst & Investor Day.
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“The strong results this quarter are the result of a four-plus-year period of hard work and consistent execution by our teams, which has positioned us well for a new era of growth,” said John Stankey, AT&T CEO. “We ended 2024 with strong momentum. Customers and shareholders can look forward to receiving even more value in 2025 as we expand the country’s largest fiber network, modernize our wireless network, grow our business and begin share repurchases in the second half of the year.”
Fourth-Quarter Consolidated Results
Fourth-Quarter Highlights
Full-Year Consolidated Results
Full-Year Highlights
2025 Outlook
For the full year, AT&T expects:
The Company also expects to achieve net-debt-to-adjusted EBITDA* in the 2.5x range in the first half of 2025. Additionally, the Company continues to expect the sale of its entire 70% stake in DIRECTV to TPG to close in mid-2025.
Note: AT&T’s fourth-quarter earnings conference call will be webcast at 8:30 a.m. ET on Monday, January 27, 2025. The webcast and related materials, including financial highlights,
Consolidated Financial Results
Full-Year Financial Results
Segment and Business Unit Results
Communications Segment | ||||||
Dollars in millions | Fourth Quarter | Percent | ||||
Unaudited | 2024 | 2023 | Change | |||
Operating Revenues | $ 31,139 | $ 30,797 | 1.1 | % | ||
Operating Income | 6,189 | 6,608 | (6.3) | % | ||
Operating Income Margin | 19.9 | % | 21.5 | % | (160) | BP |
Communications segment revenues were $31.1 billion, up 1.1% year over year, with operating income down 6.3% year over year.
Mobility | ||||||
Dollars in millions; Subscribers in thousands | Fourth Quarter | Percent | ||||
Unaudited | 2024 | 2023 | Change | |||
Operating Revenues | $ 23,129 | $ 22,393 | 3.3 | % | ||
Service | 16,563 | 16,039 | 3.3 | % | ||
Equipment | 6,566 | 6,354 | 3.3 | % | ||
Operating Expenses | 17,005 | 16,179 | 5.1 | % | ||
Operating Income | 6,124 | 6,214 | (1.4) | % | ||
Operating Income Margin | 26.5 | % | 27.7 | % | (120) | BP |
EBITDA* | $ 8,888 | $ 8,376 | 6.1 | % | ||
EBITDA Margin* | 38.4 | % | 37.4 | % | 100 | BP |
EBITDA Service Margin* | 53.7 | % | 52.2 | % | 150 | BP |
Total Wireless Net Adds (excl. Connected Devices)1 | 1,813 | 962 | ||||
Postpaid | 839 | 759 | ||||
Postpaid Phone | 482 | 526 | ||||
Postpaid Other | 357 | 233 | ||||
Prepaid Phone | (119) | (132) | ||||
Postpaid Churn | 1.00 | % | 1.01 | % | (1) | BP |
Postpaid Phone-Only Churn | 0.85 | % | 0.84 | % | 1 | BP |
Prepaid Churn | 2.73 | % | 2.97 | % | (24) | BP |
Postpaid Phone ARPU | $ 56.72 | $ 56.23 | 0.9 | % |
Mobility service revenue grew 3.3% year over year driving EBITDA service margin* expansion of 150 basis points. Postpaid phone net adds were 482,000 with postpaid phone churn of 0.85%, up 1 basis point year over year.
Mobility revenues were up 3.3% year over year driven by service revenue growth of 3.3% from subscriber gains and postpaid phone average revenue per subscriber (ARPU) growth, and equipment revenue growth of 3.3% from higher volumes of non-phone sales and higher priced phone sales. Operating expenses were up 5.1% year over year due to higher depreciation expense from Open RAN deployment and continued network transformation, higher equipment expenses resulting from higher sales and higher network costs, including storm impacts. Operating income was $6.1 billion, down 1.4% year over year. EBITDA* was $8.9 billion, up $512 million year over year, driven by service revenue growth. This was the Company’s highest-ever fourth-quarter Mobility EBITDA*.
Business Wireline | ||||||
Dollars in millions | Fourth Quarter | Percent | ||||
Unaudited | 2024 | 2023 | Change | |||
Operating Revenues | $ 4,545 | $ 5,052 | (10.0) | % | ||
Operating Expenses | 4,756 | 4,887 | (2.7) | % | ||
Operating Income/(Loss) | (211) | 165 | — | % | ||
Operating Income Margin | (4.6) | % | 3.3 | % | (790) | BP |
EBITDA* | $ 1,197 | $ 1,534 | (22.0) | % | ||
EBITDA Margin* | 26.3 | % | 30.4 | % | (410) | BP |
Business Wireline revenues and profitability declined year over year driven by continued secular pressures on legacy voice and data services that were partially offset by growth in fiber and other advanced connectivity services.
Business Wireline revenues were down 10.0% year over year, primarily due to lower demand for legacy voice and data services as well as product simplification, partially offset by growth in connectivity services. Revenue declines were also impacted by the absence of revenues from our cybersecurity business that was contributed to LevelBlue during the second quarter of 2024. Operating expenses were down 2.7% year over year due to lower personnel and customer support expenses, as well as the contribution of our cybersecurity business. Operating income was $(211) million versus $165 million in the prior-year quarter, and EBITDA* was $1.2 billion, down $337 million year over year.
Consumer Wireline | ||||||
Dollars in millions; Subscribers in thousands | Fourth Quarter | Percent | ||||
Unaudited | 2024 | 2023 | Change | |||
Operating Revenues | $ 3,465 | $ 3,352 | 3.4 | % | ||
Broadband | 2,911 | 2,700 | 7.8 | % | ||
Operating Expenses | 3,189 | 3,123 | 2.1 | % | ||
Operating Income | 276 | 229 | 20.5 | % | ||
Operating Income Margin | 8.0 | % | 6.8 | % | 120 | BP |
EBITDA* | $ 1,218 | $ 1,109 | 9.8 | % | ||
EBITDA Margin* | 35.2 | % | 33.1 | % | 210 | BP |
Broadband Net Adds (excluding DSL) | 123 | 19 | ||||
Fiber | 307 | 273 | ||||
Non Fiber | (184) | (254) | ||||
AT&T Internet Air | 158 | 67 | ||||
Broadband ARPU | $ 69.69 | $ 65.62 | 6.2 | % | ||
Fiber ARPU | $ 71.71 | $ 68.50 | 4.7 | % |
Consumer Wireline achieved strong broadband revenue growth with improving EBITDA margin*. Consumer Wireline also delivered positive broadband net adds for the sixth consecutive quarter, driven by 307,000 AT&T Fiber net adds and 158,000 AT&T Internet Air net adds.
Consumer Wireline revenues were up 3.4% year over year driven by growth in broadband revenues attributable to fiber revenues, which grew 17.8%, partially offset by declines in legacy voice and data services and other services. Operating expenses were up 2.1% year over year, primarily due to higher depreciation expense driven by fiber investment and higher network costs, including storm impacts, partially offset by savings from cost initiatives and lower marketing costs. Operating income was $276 million versus $229 million in the prior-year quarter, and EBITDA* was $1.2 billion, up $109 million year over year.
Latin America Segment – Mexico | ||||
Dollars in millions; Subscribers in thousands | Fourth Quarter | Percent | ||
Unaudited | 2024 | 2023 | Change | |
Operating Revenues | $ 1,044 | $ 1,090 | (4.2) | % |
Service | 634 | 671 | (5.5) | % |
Equipment | 410 | 419 | (2.1) | % |
Operating Expenses | 1,023 | 1,133 | (9.7) | % |
Operating Income/(Loss) | 21 | (43) | — | % |
EBITDA* | $ 171 | $ 137 | 24.8 | % |
Total Wireless Net Adds | 665 | 562 | ||
Postpaid | 204 | 151 | ||
Prepaid | 490 | 450 | ||
Reseller | (29) | (39) |
Latin America segment revenues were down 4.2% year over year, primarily due to unfavorable impacts of foreign exchange rates, offset by higher equipment sales and subscriber growth. Operating expenses were down 9.7% due to favorable impacts of foreign exchange rates, partially offset by higher equipment and selling costs attributable to subscriber growth. Operating income was $21 million compared to $(43) million in the year-ago quarter. EBITDA* was $171 million, up $34 million year over year.
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Source – Prnewswire