AT&T revenue dips to $39.4 billion in Q1

AT&T wireless
AT&T today reported revenues of $39.4 billion, operating income of $6.9 billion and net income of $3.5 billion in Q1 2017.

The American wireless giant said it added 2.7 million wireless customers including 2.1 million in the U.S., driven by prepaid and connected devices. Verizon lost wireless customers in Q1.

AT&T achieved postpaid phone churn of 0.90 percent, while wireless postpaid churn was 1.12 percent. AT&T achieved operating margin of 30.1 percent, EBITDA margin of 41.8 percent and EBITDA wireless service margin of 49.3 percent.
AT&T revenue in Q1 2017AT&T added 115,000 broadband connections. AT&T Fiber has reached 4.6 million customer locations with plans to add 2 million in 2017.

“We continued to execute on our goals of driving efficiencies in our business while growing adjusted earnings per share. The strategic moves we’ve made over the last few months to expand our wireless capacity and fortify our 5G leadership will be felt for years to come,” said Randall Stephenson, AT&T Chairman and CEO.

AT&T recently announced the FirstNet deal that gives the operator access to 20 megahertz of low-band spectrum. AT&T also announced acquisitions of Fiber Tower and Straight Path to add millimeter wave spectrum assets to spruce up 5G.

AT&T’s revenues dropped to $39.4 billion from $40.5 billion in the year-ago quarter, primarily due to record-low equipment sales in wireless.

Operating expenses fell to $32.5 billion from $33.4 billion; operating income was $6.9 billion versus $7.1 billion; and operating income margin was 17.4 percent versus 17.6 percent.

Net income totaled $3.5 billion compared to $3.8 billion. In the first quarter, capital expenditures of AT&T were $6 billion.

AT&T said capital expenditures will be $22 billion in 2017.