REG - AT & T Inc. - 4Q16 Earnings Release <Origin Href="QuoteRef">T.N</Origin> - Part 2
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13,986 16,670 -16.1 %
U-verse VoIP Connections 5,787 5,453 6.1 %
Total Retail Consumer Voice Connections 19,773 22,123 -10.6 %
Three Months Ended Twelve Months Ended
December 31, Percent December 31, Percent
2016 2015 Change 2016 2015 Change
Wireless Net Additions
Domestic 1,522 2,234 -31.9 % 6,196 8,059 -23.1 %
Mexico 1,275 593 - % 3,289 (96 ) - %
Total Wireless Net Additions 2,797 2,827 -1.1 % 9,485 7,963 19.1 %
Total Branded Wireless Net Additions 2,221 1,633 36.0 % 6,102 3,038 - %
Video Net Additions
Domestic (28 ) (26 ) -7.7 % (131 ) (63 ) - %
PanAmericana 67 60 11.7 % 140 76 84.2 %
Brazil (88 ) (94 ) 6.4 % (195 ) (223 ) 12.6 %
Total Video Net Additions (49 ) (60 ) 18.3 % (186 ) (210 ) 11.4 %
Broadband Net Additions
IP 149 192 -22.4 % 596 1,063 -43.9 %
DSL (162 ) (246 ) 34.1 % (769 ) (1,313 ) 41.4 %
Total Broadband Net Additions (13 ) (54 ) 75.9 % (173 ) (250 ) 30.8 %
BUSINESS SOLUTIONS
The Business
Solutions segment
provides services
to business
customers,
including
multinational
companies;
governmental and
wholesale
customers; and
individual
subscribers who
purchase wireless
services through
employer-sponsored
plans. We provide
advanced IP-based
services including
Virtual Private
Networks (VPN);
Ethernet-related
products and
broadband,
collectively
referred to as
strategic business
services; as well
as traditional data
and voice products.
We utilize our
wireless and wired
networks (referred
to as "wired" or
"wireline") to
provide a complete
communications
solution to our
business customers.
Segment Results
Dollars in millions Three Months Ended Twelve Months Ended
Unaudited December 31, Percent December 31, Percent
2016 2015 Change 2016 2015 Change
Segment Operating
Revenues
Wireless service $ 7,983 $ 7,684 3.9 % $ 31,850 $ 30,687 3.8 %
Fixed strategic 2,942 2,716 8.3 % 11,389 10,461 8.9 %
services
Legacy voice and 3,797 4,387 -13.4 % 16,364 18,468 -11.4 %
data services
Other service and 963 973 -1.0 % 3,615 3,558 1.6 %
equipment
Wireless equipment 2,348 2,454 -4.3 % 7,770 7,953 -2.3 %
Total Segment 18,033 18,214 -1.0 % 70,988 71,127 -0.2 %
Operating Revenues
Segment Operating
Expenses
Operations and 11,746 11,980 -2.0 % 44,330 44,946 -1.4 %
support expenses
Depreciation and 2,264 2,513 -9.9 % 9,832 9,789 0.4 %
amortization
Total Segment 14,010 14,493 -3.3 % 54,162 54,735 -1.0 %
Operating Expenses
Segment Operating 4,023 3,721 8.1 % 16,826 16,392 2.6 %
Income
Equity in Net - - - % - - - %
Income of
Affiliates
Segment $ 4,023 $ 3,721 8.1 % $ 16,826 $ 16,392 2.6 %
Contribution
Segment Operating 22.3 % 20.4 % 190 BP 23.7 % 23.0 % 70 BP
Income Margin
Supplementary
Operating Data
Subscribers and
connections in
thousands
Unaudited December 31, Percent
2016 2015 Change
Business Solutions
Wireless
Subscribers
Postpaid/Branded 50,688 48,290 5.0 %
Reseller 65 85 -23.5 %
Connected Devices 30,649 25,284 21.2 %
Total Business 81,402 73,659 10.5 %
Solutions Wireless
Subscribers
Business Solutions 977 911 7.2 %
IP Broadband
Connections
Three Months Ended Twelve Months Ended
December 31, Percent December 31, Percent
2016 2015 Change 2016 2015 Change
Business Solutions Wireless Net Additions
Postpaid/Branded 250 353 -29.2 % 759 1,203 -36.9 %
Reseller 1 (1 ) - % (33 ) 13 - %
Connected Devices 1,263 1,211 4.3 % 5,330 5,315 0.3 %
Total Business Solutions Wireless Net Additions 1,514 1,563 -3.1 % 6,056 6,531 -7.3 %
Business Solutions Wireless Postpaid Churn 1.11 % 1.10 % 1 BP 1.00 % 0.99 % 1 BP
Business Solutions IP Broadband Net Additions 14 19 -26.3 % 66 89 -25.8 %
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 Twelve Months Ended
Unaudited December 31, Percent December 31, Percent
2016 2015 Change 2016 2015 Change
Segment Operating Revenues
Video entertainment $ 9,567 $ 9,247 3.5 % $ 36,460 $ 20,271 79.9 %
High-speed internet 1,910 1,740 9.8 % 7,472 6,601 13.2 %
Legacy voice and data services 1,104 1,367 -19.2 % 4,829 5,914 -18.3 %
Other service and equipment 625 640 -2.3 % 2,534 2,508 1.0 %
Total Segment Operating Revenues 13,206 12,994 1.6 % 51,295 35,294 45.3 %
Segment Operating Expenses
Operations and support expenses 10,463 10,123 3.4 % 39,338 28,345 38.8 %
Depreciation and amortization 1,381 1,426 -3.2 % 5,862 4,945 18.5 %
Total Segment Operating Expenses 11,844 11,549 2.6 % 45,200 33,290 35.8 %
Segment Operating Income 1,362 1,445 -5.7 % 6,095 2,004 - %
Equity in Net Income (Loss) of Affiliates 8 12 -33.3 % 9 (4 ) - %
Segment Contribution $ 1,370 $ 1,457 -6.0 % $ 6,104 $ 2,000 - %
Segment Operating Income Margin 10.3 % 11.1 % -80 BP 11.9 % 5.7 % 620 BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited December 31, Percent
2016 2015 Change
Video Connections
Satellite 21,012 19,784 6.2 %
U-verse 4,253 5,614 -24.2 %
Total Video Connections 25,265 25,398 -0.5 %
Broadband Connections
IP 12,888 12,356 4.3 %
DSL 1,291 1,930 -33.1 %
Total Broadband Connections 14,179 14,286 -0.7 %
Voice Connections
Retail Consumer Switched Access Lines 5,853 7,286 -19.7 %
U-verse Consumer VoIP Connections 5,425 5,212 4.1 %
Total Retail Consumer Voice Connections 11,278 12,498 -9.8 %
Three Months Ended Twelve Months Ended
December 31, Percent December 31, Percent
2016 2015 Change 2016 2015 Change
Video Net Additions1
Satellite 235 214 9.8 % 1,228 240 - %
U-verse (262 ) (240 ) -9.2 % (1,361 ) (306 ) - %
Total Video Net Additions (27 ) (26 ) -3.8 % (133 ) (66 ) - %
1 Includes customers that migrated to DIRECTV NOW
Broadband Net Additions
IP 136 171 -20.5 % 532 973 -45.3 %
DSL (133 ) (208 ) 36.1 % (639 ) (1,130 ) 43.5 %
Total Broadband Net Additions 3 (37 ) - % (107 ) (157 ) 31.8 %
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 Twelve Months Ended
Unaudited December 31, Percent December 31, Percent
2016 2015 Change 2016 2015 Change
Segment Operating Revenues
Service $ 6,731 $ 7,131 -5.6 % $ 27,536 $ 29,150 -5.5 %
Equipment 1,688 1,618 4.3 % 5,664 5,916 -4.3 %
Total Segment Operating Revenues 8,419 8,749 -3.8 % 33,200 35,066 -5.3 %
Segment Operating Expenses
Operations and support expenses 5,316 5,669 -6.2 % 19,659 21,477 -8.5 %
Depreciation and amortization 918 939 -2.2 % 3,716 3,851 -3.5 %
Total Segment Operating Expenses 6,234 6,608 -5.7 % 23,375 25,328 -7.7 %
Segment Operating Income 2,185 2,141 2.1 % 9,825 9,738 0.9 %
Equity in Net Income of Affiliates - - - % - - - %
Segment Contribution $ 2,185 $ 2,141 2.1 % $ 9,825 $ 9,738 0.9 %
Segment Operating Income Margin 26.0 % 24.5 % 150 BP 29.6 % 27.8 % 180 BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited December 31, Percent
2016 2015 Change
Consumer Mobility Subscribers
Postpaid 27,095 28,814 -6.0 %
Prepaid 13,536 11,548 17.2 %
Branded 40,631 40,362 0.7 %
Reseller 11,884 13,690 -13.2 %
Connected Devices 942 929 1.4 %
Total Consumer Mobility Subscribers 53,457 54,981 -2.8 %
Three Months Ended Twelve Months Ended
December 31, Percent December 31, Percent
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