Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024
The financial report provides a quarterly update on the company’s financial performance, highlighting key events and developments during the period ended March 31, 2024. The report is submitted to the Securities and Exchange Commission in accordance with the Securities Exchange Act of 1934.
Company Overview
AT&T is a large telecommunications company that provides wireless services, business networking solutions, broadband internet, and TV entertainment services.
Financial Highlights
Revenue and Profits
- Total revenue was $30 billion in Q1 2024, down slightly from $30.1 billion in Q1 2023.
- Net income attributable to AT&T was $3.4 billion in Q1 2024, down 19% from $4.2 billion in Q1 2023.
Cash Flow
- Cash from operations was $7.5 billion in Q1 2024, up from $6.7 billion in Q1 2023. This reflects growth in the business.
- Capital expenditures were $3.8 billion in Q1 2024. AT&T continues investing in 5G wireless networks, fiber broadband, and network upgrades.
Debt
- Total debt declined from $137 billion at year-end 2023 to $133 billion at the end of Q1 2024, as AT&T uses cash flow to repay debt.
Dividends
- AT&T paid $2 billion in dividends in Q1 2024 and has maintained a stable dividend payout.
Segment Performance
Communications Segment (Mobility, Business Wireline, Consumer Wireline)
The Mobility business (wireless services) continues to perform well, with revenue growth from more subscribers and higher average revenue per user. Segment margins expanded.
The Business Wireline segment (services for companies) continues to face revenue declines as demand shifts from legacy networking products to new connectivity services like fiber. Margins compressed significantly.
Consumer Wireline (broadband internet and legacy home phone service) is transitioning from copper to fiber-based services. Revenues grew almost 4% and margins expanded.
Latin America Segment
- Revenues in Mexico wireless operations rose 20% in Q1 2024, driven by subscriber gains, higher equipment sales, and favorable currency exchange impacts. Margins improved.
Outlook
AT&T is progressing on a multi-year transformation to streamline operations, reduce costs, transition legacy services to next-generation IP and wireless networks, and enhance margins.
Key strategic initiatives like expanding 5G and fiber broadband coverage will continue driving capital investments near-term. Over the long run, these moves should strengthen AT&T’s competitive position.
The company maintained its financial guidance for full year 2024, including low single-digit adjusted EPS growth. AT&T expects to make progress on debt reduction and is committed to the dividend.
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