REG - AT & T Inc. - 3rd Quarter Results 2017 8-K <Origin Href="QuoteRef">T.N</Origin> - Part 2
08/12/2017 15:51
- Part 2: For the preceding part double click ID:nRSH8713Ya
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 Nine Months Ended
Unaudited September 30, Percent September 30, Percent
2017 2016 Change 2017 2016 Change
Segment Operating Revenues
Video entertainment $ 9,200 $ 9,026 1.9 % $ 27,373 $ 26,893 1.8 %
High-speed internet 1,916 1,892 1.3 % 5,784 5,562 4.0 %
Legacy voice and data services 949 1,168 -18.8 % 3,010 3,725 -19.2 %
Other service and equipment 583 634 -8.0 % 1,786 1,909 -6.4 %
Total Segment Operating Revenues 12,648 12,720 -0.6 % 37,953 38,089 -0.4 %
Segment Operating Expenses
Operations and support expenses 9,953 9,728 2.3 % 29,112 28,875 0.8 %
Depreciation and amortization 1,379 1,504 -8.3 % 4,256 4,481 -5.0 %
Total Segment Operating Expenses 11,332 11,232 0.9 % 33,368 33,356 - %
Segment Operating Income 1,316 1,488 -11.6 % 4,585 4,733 -3.1 %
Equity in Net Income (Loss) of Affiliates (6) - - % (23) 1 - %
Segment Contribution $ 1,310 $ 1,488 -12.0 % $ 4,562 $ 4,734 -3.6 %
Segment Operating Income Margin 10.4 % 11.7 % 12.1 % 12.4 %
Supplementary Operating Data
Subscribers and connections in thousands Nine Months Ended
Unaudited September 30, Percent
2017 2016 Change
Video Connections
Satellite 20,605 20,777 -0.8 %
U-verse 3,691 4,515 -18.3 %
DIRECTV NOW 787 - - %
Total Video Connections 25,083 25,292 -0.8 %
Broadband Connections
IP 13,367 12,752 4.8 %
DSL 964 1,424 -32.3 %
Total Broadband Connections 14,331 14,176 1.1 %
Voice Connections
Retail Consumer Switched Access Lines 4,996 6,155 -18.8 %
U-verse Consumer VoIP Connections 5,337 5,378 -0.8 %
Total Retail Consumer Voice Connections 10,333 11,533 -10.4 %
Three Months Ended Nine Months Ended
September 30, Percent September 30, Percent
2017 2016 Change 2017 2016 Change
Video Net Additions
Satellite (251) 323 - % (407) 993 - %
U-verse (134) (326) 58.9 % (562) (1,099) 48.9 %
DIRECTV NOW 296 - - % 520 - - %
Total Video Net Additions (89) (3) - % (449) (106) - %
Broadband Net Additions
IP 125 156 -19.9 % 479 396 21.0 %
DSL (96) (161) 40.4 % (327) (506) 35.4 %
Total Broadband Net Additions 29 (5) - % 152 (110) - %
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 Nine Months Ended
Unaudited September 30, Percent September 30, Percent
2017 2016 Change 2017 2016 Change
Segment Operating Revenues
Service $ 6,507 $ 6,914 -5.9 % $ 19,644 $ 20,805 -5.6 %
Equipment 1,241 1,353 -8.3 % 3,635 3,976 -8.6 %
Total Segment Operating Revenues 7,748 8,267 -6.3 % 23,279 24,781 -6.1 %
Segment Operating Expenses
Operations and support expenses 4,551 4,751 -4.2 % 13,599 14,343 -5.2 %
Depreciation and amortization 877 944 -7.1 % 2,621 2,798 -6.3 %
Total Segment Operating Expenses 5,428 5,695 -4.7 % 16,220 17,141 -5.4 %
Segment Operating Income 2,320 2,572 -9.8 % 7,059 7,640 -7.6 %
Equity in Net Income of Affiliates - - - % - - - %
Segment Contribution $ 2,320 $ 2,572 -9.8 % $ 7,059 $ 7,640 -7.6 %
Segment Operating Income Margin 29.9 % 31.1 % 30.3 % 30.8 %
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited September 30, Percent
2017 2016 Change
Consumer Mobility Subscribers
Postpaid 26,003 27,374 -5.0 %
Prepaid 15,136 13,035 16.1 %
Branded 41,139 40,409 1.8 %
Reseller 9,800 12,566 -22.0 %
Connected Devices 489 936 -47.8 %
Total Consumer Mobility Subscribers 51,428 53,911 -4.6 %
Three Months Ended Nine Months Ended
September 30, Percent September 30, Percent
2017 2016 Change 2017 2016 Change
Consumer Mobility Net Additions
Postpaid 102 21 - % 127 89 42.7 %
Prepaid1 324 304 6.6 % 873 1,169 -25.3 %
Branded 426 325 31.1 % 1,000 1,258 -20.5 %
Reseller (394) (316) -24.7 % (1,345) (1,140) -18.0 %
Connected Devices1 (18) 41 - % 87 14 - %
Total Consumer Mobility Net Additions 14 50 -72.0 % (258) 132 - %
Total Churn 2.37 % 2.11 % 26 BP 2.32 % 2.06 % 26 BP
Postpaid Churn 1.17 % 1.19 % -2 BP 1.16 % 1.17 % -1 BP
1Effective July 1, 2017 we prospectively reclassified prepaid internet of things (IoT) connections from connected devices to prepaid.
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 Nine Months Ended
Unaudited September 30, Percent September 30, Percent
2017 2016 Change 2017 2016 Change
Segment Operating Revenues
Video entertainment $ 1,363 $ 1,297 5.1 % $ 4,065 $ 3,649 11.4 %
Wireless service 536 484 10.7 % 1,546 1,428 8.3 %
Wireless equipment 200 98 - % 443 297 49.2 %
Total Segment Operating 2,099 1,879 11.7 % 6,054 5,374 12.7 %
Revenues
Segment Operating Expenses
Operations and support 1,937 1,640 18.1 % 5,468 4,951 10.4 %
expenses
Depreciation and 304 293 3.8 % 905 868 4.3 %
amortization
Total Segment Operating 2,241 1,933 15.9 % 6,373 5,819 9.5 %
Expenses
Segment Operating Income (142) (54) - % (319) (445) 28.3 %
(Loss)
Equity in Net Income (Loss) 17 1 - % 62 24 - %
of Affiliates
Segment Contribution $ (125) $ (53) - % $ (257) $ (421) 39.0 %
Segment Operating Income (6.8) % (2.9) % (5.3) % (8.3) %
Margin
Supplementary Operating Data
Subscribers and connections
in thousands
Unaudited September 30, Percent
2017 2016 Change
Mexican Wireless Subscribers
Postpaid 5,316 4,733 12.3 %
Prepaid 8,231 5,665 45.3 %
Branded 13,547 10,398 30.3 %
Reseller 232 300 -22.7 %
Total Mexican Wireless 13,779 10,698 28.8 %
Subscribers
Latin America Satellite
Subscribers
PanAmericana 8,201 7,139 14.9 %
SKY Brazil 5,289 5,337 -0.9 %
Total Latin America 13,490 12,476 8.1 %
Satellite Subscribers
Three Months Ended Nine Months Ended
September 30, Percent September 30, Percent
2017 2016 Change 2017 2016 Change
Mexican Wireless Net
Additions
Postpaid 129
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