REG - AT & T Inc. - 2Q17 Earnings Release <Origin Href="QuoteRef">T.N</Origin> - Part 2
23/08/2017 16:40
- Part 2: For the preceding part double click ID:nRSW8227Oa
Postpaid/Branded 36 185 -80.5 % (89 ) 318 - %
Reseller (5 ) (13 ) 61.5 % 1 (35 ) - %
Connected Devices 2,170 1,199 81.0 % 4,723 2,777 70.1 %
Total Business 2,201 1,371 60.5 % 4,635 3,060 51.5 %
Solutions Wireless
Net Additions
Business Solutions 0.97 % 0.91 % 6 BP 1.02 % 0.97 % 5 BP
Wireless Postpaid
Churn
Business Solutions IP 12 20 -40.0 % 16 37 -56.8 %
Broadband Net
Additions
ENTERTAINMENT GROUP
The Entertainment Group segment provides video, internet, voice communication, and interactive and targeted advertising services to customers located in the U.S. or in U.S. territories. We utilize our copper and IP-based wired network and/or our satellite technology.
Segment Results
Dollars in millions Three Months Ended Six Months Ended
Unaudited June 30, Percent June 30, Percent
2017 2016 Change 2017 2016 Change
Segment Operating Revenues
Video entertainment $ 9,153 $ 8,963 2.1 % $ 18,173 $ 17,867 1.7 %
High-speed internet 1,927 1,867 3.2 % 3,868 3,670 5.4 %
Legacy voice and data services 1,005 1,244 -19.2 % 2,061 2,557 -19.4 %
Other service and equipment 597 637 -6.3 % 1,203 1,275 -5.6 %
Total Segment Operating Revenues 12,682 12,711 -0.2 % 25,305 25,369 -0.3 %
Segment Operating Expenses
Operations and support expenses 9,558 9,569 -0.1 % 19,159 19,147 0.1 %
Depreciation and amortization 1,458 1,489 -2.1 % 2,877 2,977 -3.4 %
Total Segment Operating Expenses 11,016 11,058 -0.4 % 22,036 22,124 -0.4 %
Segment Operating Income 1,666 1,653 0.8 % 3,269 3,245 0.7 %
Equity in Net Income (Loss) of Affiliates (11 ) (2 ) - % (17 ) 1 - %
Segment Contribution $ 1,655 $ 1,651 0.2 % $ 3,252 $ 3,246 0.2 %
Segment Operating Income Margin 13.1 % 13.0 % 12.9 % 12.8 %
Supplementary Operating Data
Subscribers and connections in thousands Six Months Ended
Unaudited June 30, Percent
2017 2016 Change
Video Connections
Satellite 20,856 20,454 2.0 %
U-verse 3,825 4,841 -21.0 %
DIRECTV NOW 491 - - %
Total Video Connections 25,172 25,295 -0.5 %
Broadband Connections
IP 13,242 12,596 5.1 %
DSL 1,060 1,585 -33.1 %
Total Broadband Connections 14,302 14,181 0.9 %
Voice Connections
Retail Consumer Switched Access Lines 5,257 6,515 -19.3 %
U-verse Consumer VoIP Connections 5,439 5,300 2.6 %
Total Retail Consumer Voice Connections 10,696 11,815 -9.5 %
Three Months Ended Six Months Ended
June 30, Percent June 30, Percent
2017 2016 Change 2017 2016 Change
Video Net Additions
Satellite (156 ) 342 - % (156 ) 670 - %
U-verse (195 ) (391 ) 50.1 % (428 ) (773 ) 44.6 %
DIRECTV NOW 152 - - % 224 - - %
Total Video Net Additions (199 ) (49 ) - % (360 ) (103 ) - %
Broadband Net Additions
IP 112 54 - % 354 240 47.5 %
DSL (104 ) (164 ) 36.6 % (231 ) (345 ) 33.0 %
Total Broadband Net Additions 8 (110 ) - % 123 (105 ) - %
CONSUMER MOBILITY
The Consumer Mobility segment provides nationwide wireless service to consumers and wholesale and resale wireless subscribers located in the U.S. or in U.S. territories. We utilize our U.S. wireless network to provide voice and data services, including high-speed internet, video, and home monitoring services.
Segment Results
Dollars in millions Three Months Ended Six Months Ended
Unaudited June 30, Percent June 30, Percent
2017 2016 Change 2017 2016 Change
Segment Operating Revenues
Service $ 6,528 $ 6,948 -6.0 % $ 13,137 $ 13,891 -5.4 %
Equipment 1,263 1,238 2.0 % 2,394 2,623 -8.7 %
Total Segment Operating Revenues 7,791 8,186 -4.8 % 15,531 16,514 -6.0 %
Segment Operating Expenses
Operations and support expenses 4,520 4,680 -3.4 % 9,048 9,592 -5.7 %
Depreciation and amortization 871 932 -6.5 % 1,744 1,854 -5.9 %
Total Segment Operating Expenses 5,391 5,612 -3.9 % 10,792 11,446 -5.7 %
Segment Operating Income 2,400 2,574 -6.8 % 4,739 5,068 -6.5 %
Equity in Net Income of Affiliates - - - % - - - %
Segment Contribution $ 2,400 $ 2,574 -6.8 % $ 4,739 $ 5,068 -6.5 %
Segment Operating Income Margin 30.8 % 31.4 % 30.5 % 30.7 %
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited June 30, Percent
2017 2016 Change
Consumer Mobility Subscribers
Postpaid 26,290 27,862 -5.6 %
Prepaid 14,187 12,633 12.3 %
Branded 40,477 40,495 - %
Reseller 10,182 12,869 -20.9 %
Connected Devices 1,047 896 16.9 %
Total Consumer Mobility Subscribers 51,706 54,260 -4.7 %
Three Months Ended Six Months Ended
June 30, Percent June 30, Percent
2017 2016 Change 2017 2016 Change
Consumer Mobility Net Additions
Postpaid 91 72 26.4 % 25 68 -63.2 %
Prepaid 267 365 -26.8 % 549 865 -36.5 %
Branded 358 437 -18.1 % 574 933 -38.5 %
Reseller (363 ) (446 ) 18.6 % (951 ) (824 ) -15.4 %
Connected Devices 86 (1 ) - % 105 (27 ) - %
Total Consumer Mobility Net Additions 81 (10 ) - % (272 ) 82 - %
Total Churn 2.15 % 1.96 % 19 BP 2.29 % 2.04 % 25 BP
Postpaid Churn 1.09 % 1.09 % - BP 1.16 % 1.16 % - BP
INTERNATIONAL
The International
segment provides
entertainment
services in Latin
America and wireless
services in Mexico.
Video entertainment
services are provided
to primarily
residential customers
using satellite
technology. We
utilize our regional
and national wireless
networks in Mexico to
provide consumer and
business customers
with wireless data
and voice
communication
services. Our
international
subsidiaries conduct
business in their
local currency and
operating results are
converted to U.S.
dollars using
official exchange
rates.
Segment Results
Dollars in millions Three Months Ended Six Months Ended
Unaudited June 30, Percent June 30, Percent
2017 2016 Change 2017 2016 Change
Segment Operating
Revenues
Video entertainment $ 1,361 $ 1,222 11.4 % $ 2,702 $ 2,352 14.9 %
Wireless service 535 489 9.4 % 1,010 944 7.0 %
Wireless equipment 130 117 11.1 % 243 199 22.1 %
Total Segment 2,026 1,828 10.8 % 3,955 3,495 13.2 %
Operating Revenues
Segment Operating
Expenses
Operations and 1,772 1,723 2.8 % 3,531 3,311 6.6 %
support expenses
Depreciation and 311 298 4.4 % 601 575 4.5 %
amortization
Total Segment 2,083 2,021 3.1 % 4,132 3,886 6.3 %
Operating Expenses
Segment Operating (57 ) (193 ) 70.5
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