By Telecom Lead Team:
American mobile service provider AT&T has reported 2 percent increase in
sales at $124.28 billion in 2011 against $126.72 billion in 2010.
The dismal growth was
primarily because of an 11.3 percent drop in voice revenue in 2011.
AT&T posted a 3.6
increase in Q4 2011 revenue at $32.5 billion against $31.36 billion.
The telecom major reported
80 percent dip in profit at $3.9 billion in 2011 from $19.86 billion in 2010.
In Q4 2011, it posted net
loss of $6.67 billion against a profit of $1.08 billion.
In 2011, AT&T’s growth
engines – wireless, wireline data and managed services – represented 76 percent
of total revenues and grew 7.5 percent versus 2010.
Wireless revenue was up 6
percent in 2011 at $56.72 billion. Voice revenue dipped 11.3 percent to $25.13
billion. Data income was up 7.4 percent in 2011 to $29.6 billion.
AT&T’s Capex was up by 3
percent to $20.11 billion in 2011 from $19.53 billion in 2010.
In Q4 2011, Capex was down
by 13.8 percent to $5.48 billion.
We had a tremendous
year in terms of execution, and we have excellent momentum across our growth
platforms. This was a blowout quarter for smartphone sales. Our network
performance is at a high level on voice quality and best-in-class mobile
download speeds. U-verse sales continue to be strong and business revenue
trends are on a good track,” said Randall Stephenson, AT&T chairman and
chief executive officer.
says the company is well positioned to deliver solid revenue and earnings
growth with improving margins while returning substantial value to shareowners.
In 2012, AT&T expects continued consolidated revenue growth, including
postpaid wireless ARPU growth around 2 percent for the year.
also expects to expand consolidated and wireless margins while keeping wireline
margins stable. Achieving these targets will lead to mid-single-digit or better
earnings growth with an opportunity to accelerate earnings growth beyond 2012.
Outlook excludes any significant items. Importantly, little economic lift is assumed
with these expectations.
expects capital expenditures to be about $20 billion, stable with 2011, as
increases in wireless spending offset declines in wireline capital
expenditures. The company also expects strong free cash flow, with full-year
free cash flow in the $15 to $16 billion range, and plans to begin execution of
its existing 300 million share repurchase authorization immediately.