AT&T said its capital investment was $6.4 billion including capital expenditures of $4.3 billion, and $2.1 billion cash paid for vendor financing in the first quarter of 2023, compared to $6.1 billion (capital expenditures of $4.6 billion and vendor financing of $1.6 billion).
AT&T’s operating revenues in the first quarter were $30.1 billion, up 1.4 percent from the first quarter of 2022, reflecting higher Mobility, Mexico and Consumer Wireline revenues, partially offset by declines in Business Wireline.
John Stankey, AT&T CEO, said: “We’re winning thanks to a proven and sustainable playbook that centers on simple, customer-centric experiences. As a result, we’re adding high-value customers, and when they choose AT&T, they stay with us.”
HIGHLIGHTS
Continued 5G and fiber subscriber gains
424,000 postpaid phone net adds, 11 straight quarters with more than 400,000 net adds with continued low postpaid phone churn
272,000 AT&T Fiber net adds, 13 straight quarters with more than 200,000 net adds
High-quality customer additions continue to drive revenue growth
Domestic wireless service revenues up 5.2%; best-ever first-quarter Mobility operating income
Consumer broadband revenues up 7.3% driven by AT&T Fiber revenue growth of 30.7%
Network enhancement and expansion momentum
Mid-band 5G spectrum covering more than 160 million people; reliable, nationwide 5G reaching 290 million people
Ability to serve fiber to 19.7 million consumer and more than 3 million business customer locations in more than 100 U.S. metro areas; remain on track to pass 30 million fiber locations by the end of 2025
AT&T’s operating expenses in the first quarter were $24.1 billion, down 0.2 percent, reflecting the benefits of transformation efforts, offset by inflationary increases.
AT&T’s operating expense declines were driven by lower domestic wireless equipment and associated selling costs from lower sales volumes, first-quarter 2022 3G network shutdown costs, lower personnel costs and higher returns on benefit-related assets.
AT&T’s operating income in the first quarter was $6.0 billion compared to $5.5 billion in the comparable 2022 period. AT&T’s first-quarter operating income margin was 19.9 percent, compared to 18.6 percent in the comparable 2022 period.
AT&T’s revenue from communications segment – consisting of Mobility and Wireline business units – reached $29.2 billion, up 1.0 percent versus first-quarter 2022, with segment operating income of $6.7 billion, up 3.9 percent versus the year-ago quarter. The Communications segment operating income margin was 23.1 percent, compared to 22.5 percent in the year-earlier quarter.
AT&T’s mobility revenues for the first quarter of 2023 were $20.6 billion, up 2.5 percent versus the first quarter of 2022, driven by service revenue growth from subscriber and ARPU growth, partially offset by lower equipment revenues from lower sales volumes.
AT&T’s Mobility business unit reported a net gain of 5.1 million wireless subscribers. At March 31, 2023, wireless subscribers totaled 222.8 million (including approximately 4.7 million FirstNet connections) compared to 196.6 million at March 31, 2022.
AT&T’s Business Wireline revenues for the first quarter of 2023 were $5.3 billion, down 5.5 percent versus the year-ago quarter, primarily due to lower demand for legacy voice and data services and product simplification, partially offset by growth in connectivity services
AT&T’s Consumer Wireline revenues for the first quarter of 2023 were $3.2 billion, up 2.5 percent versus the year-ago quarter, driven by growth in broadband revenues attributable to fiber growth, partially offset by declines in legacy voice and data services and other services.
AT&T’s Consumer Wireline had approximately 13.7 million broadband connections compared to 13.9 million at March 31, 2022. During the first quarter, broadband subscriber net losses were 23,000, with fiber broadband net adds of 272,000. Total broadband and DSL connections were 13.9 million at March 31, 2023, compared to 14.1 million at March 31, 2022.
