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AT&T Delivers Strong Third-Quarter Results; Growth Highlighted by Robust Wireless Gains, Advances in Enterprise Services, Accelerated TV Ramp
-- $0.50 reported earnings per diluted share compared with $0.56 in the year-earlier third quarter
-- $0.71 adjusted earnings per diluted share, up 12.7 percent from $0.63 in the third quarter of 2006
-- Continued revenue growth ramp: $30.1 billion reported operating revenues, compared with $15.6 billion in the year-earlier third quarter; pro forma revenue growth of 3.2 percent, up from 2.0 percent year-over-year growth in the second quarter of this year
-- 2.0 million net gain in wireless subscribers to reach 65.7 million in service
-- 14.4 percent wireless revenue growth with wireless data revenues up 63.9 percent
-- Wireless operating income margin of 18.0 percent reported, 26.4 percent adjusted; 39.1 percent adjusted wireless OIBDA service margin, up from 35.6 percent in the year-earlier quarter
-- Further advances in enterprise customer revenues driven by a 21.6 percent increase in Internet Protocol (IP) data revenues: year-over-year growth in recurring enterprise service revenues, second consecutive quarter of sequential growth in total and recurring enterprise revenues
-- 126,000 U-verse(SM)TV subscribers in service, up from 51,000 three months earlier; total video subscribers, including satellite and AT&T U-verse, up 215,000 in the third quarter to reach 2.1 million
AT&T Inc. (NYSE:T) today posted strong third-quarter results and delivered its tenth consecutive quarter of double-digit growth in adjusted earnings per share. Results included an increase in wireless subscribers of 2.0 million, further advances in enterprise business trends and accelerated expansion of AT&T’s next-generation TV service.
“We delivered an excellent third quarter,” said Randall Stephenson, AT&T chairman and chief executive officer. “Revenue growth continues to ramp, merger integration is on track, adjusted earnings and free cash flow are both strong.”
“At AT&T, our goal is to connect people with their world, everywhere they live and work, and do it better than anyone else,” Stephenson said. “We have assembled great assets and alliances to help us deliver on this vision. And across our business we’re innovating and working aggressively to give customers more choice about how, when and where they communicate.
“Our results show the benefit of these efforts,” Stephenson continued. “Wireless subscriber gains stepped up dramatically. Our enterprise business has greatly improved momentum. Broadband growth is solid. And our AT&T U-verse TV install rate already approaches our year-end target of 10,000 per week.
“These accomplishments reinforce our positive outlook for 2007 and the years ahead,” Stephenson said. “AT&T has a strong management team with an intense commitment to execution. We’ve made sound strategic moves to better serve customers and expand our potential in key growth areas. And our strong cash flow allows us to invest in the future of our business as we return substantial value to shareowners.”
Dividends and Share Repurchases
AT&T continues to return substantial value to shareowners through dividends and share repurchases.
Dividends paid totaled $2.2 billion in the quarter and $6.6 billion for the first three quarters of the year.
AT&T repurchased 50.5 million of its shares in the third quarter for $2.0 billion and ended the quarter with 6.1 billion shares outstanding. In the first three quarters of the year, AT&T repurchased 229.6 million of its shares for $8.9 billion.
Combining dividends and share repurchases, through the first three quarters of 2007, AT&T returned $15.5 billion of value to shareowners.
At the end of the third quarter, AT&T had 86.2 million shares remaining in its current repurchase authorization, and the company expects to continue repurchases. The timing and nature of repurchases are subject to market conditions and applicable securities laws.
For more information: http://www.att.com/investor.relations