AT&T Inc. | ||||||||||||||||||||
Financial Data | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 24,731 | $ | 26,247 | (5.8) | % | $ | 72,998 | $ | 87,340 | (16.4) | % | ||||||||
Equipment | 5,312 | 5,079 | 4.6 | % | 16,400 | 15,603 | 5.1 | % | ||||||||||||
Total Operating Revenues | 30,043 | 31,326 | (4.1) | % | 89,398 | 102,943 | (13.2) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||
Equipment | 5,440 | 5,401 | 0.7 | % | 17,010 | 16,242 | 4.7 | % | ||||||||||||
Broadcast, programming and operations | — | 1,117 | — | % | — | 8,106 | — | % | ||||||||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 6,761 | 6,915 | (2.2) | % | 20,267 | 21,834 | (7.2) | % | ||||||||||||
Selling, general and administrative | 7,202 | 7,094 | 1.5 | % | 21,445 | 22,301 | (3.8) | % | ||||||||||||
Asset impairments and abandonments and restructuring | 114 | 105 | 8.6 | % | 745 | 105 | — | % | ||||||||||||
Depreciation and amortization | 4,514 | 4,457 | 1.3 | % | 13,426 | 13,352 | 0.6 | % | ||||||||||||
Total Operating Expenses | 24,031 | 25,089 | (4.2) | % | 72,893 | 81,940 | (11.0) | % | ||||||||||||
Operating Income | 6,012 | 6,237 | (3.6) | % | 16,505 | 21,003 | (21.4) | % | ||||||||||||
Interest Expense | 1,420 | 1,627 | (12.7) | % | 4,548 | 5,090 | (10.6) | % | ||||||||||||
Equity in Net Income (Loss) of Affiliates | 392 | 183 | — | % | 1,417 | 159 | — | % | ||||||||||||
Other Income (Expense) — Net | 2,270 | 1,522 | 49.1 | % | 6,729 | 6,958 | (3.3) | % | ||||||||||||
Income from Continuing Operations Before Income Taxes | 7,254 | 6,315 | 14.9 | % | 20,103 | 23,030 | (12.7) | % | ||||||||||||
Income tax expense on continuing operations | 908 | 1,296 | (29.9) | % | 3,857 | 4,456 | (13.4) | % | ||||||||||||
Income From Continuing Operations | 6,346 | 5,019 | 26.4 | % | 16,246 | 18,574 | (12.5) | % | ||||||||||||
Income (loss) from discontinued operations, net of tax | 53 | 1,254 | (95.8) | % | (146) | (2,485) | 94.1 | % | ||||||||||||
Net Income | 6,399 | 6,273 | 2.0 | % | 16,100 | 16,089 | 0.1 | % | ||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (373) | (355) | (5.1) | % | (1,107) | (1,051) | (5.3) | % | ||||||||||||
Net Income Attributable to AT&T | $ | 6,026 | $ | 5,918 | 1.8 | % | $ | 14,993 | $ | 15,038 | (0.3) | % | ||||||||
Less: Preferred Stock Dividends | (49) | (50) | 2.0 | % | (149) | (156) | 4.5 | % | ||||||||||||
Net Income Attributable to Common Stock | $ | 5,977 | $ | 5,868 | 1.9 | % | $ | 14,844 | $ | 14,882 | (0.3) | % | ||||||||
Basic Earnings Per Share Attributable to Common Stock | ||||||||||||||||||||
From continuing operations | $ | 0.82 | $ | 0.64 | 28.1 | % | $ | 2.08 | $ | 2.40 | (13.3) | % | ||||||||
From discontinued operations | $ | 0.01 | $ | 0.18 | (94.4) | % | $ | (0.02) | $ | (0.33) | 93.9 | % | ||||||||
$ | 0.83 | $ | 0.82 | 1.2 | % | $ | 2.06 | $ | 2.07 | (0.5) | % | |||||||||
Weighted Average Common Shares Outstanding (000,000) | 7,153 | 7,171 | (0.3) | % | 7,169 | 7,167 | — | % | ||||||||||||
Diluted Earnings Per Share Attributable to Common Stock 1 | ||||||||||||||||||||
From continuing operations | $ | 0.79 | $ | 0.63 | 25.4 | % | $ | 2.03 | $ | 2.37 | (14.3) | % | ||||||||
From discontinued operations | $ | 0.01 | $ | 0.17 | (94.1) | % | $ | (0.02) | $ | (0.33) | 93.9 | % | ||||||||
$ | 0.80 | $ | 0.80 | — | % | $ | 2.01 | $ | 2.04 | (1.5) | % | |||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) 1 | 7,647 | 7,506 | 1.9 | % | 7,605 | 7,491 | 1.5 | % | ||||||||||||
1Reflects retrospective adoption of Accounting Standards Update (ASU) No. 2020-06 |
1
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Balance Sheets | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Sep. 30, | Dec. 31, | |||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 2,423 | $ | 19,223 | |||||||
Accounts receivable – net of related allowances for credit loss of $646 and $658 | 11,384 | 12,313 | |||||||||
Inventories | 3,935 | 3,325 | |||||||||
Prepaid and other current assets | 14,553 | 16,131 | |||||||||
Assets from discontinued operations | — | 119,776 | |||||||||
Total current assets | 32,295 | 170,768 | |||||||||
Property, Plant and Equipment – Net | 127,045 | 121,649 | |||||||||
Goodwill | 92,725 | 92,740 | |||||||||
Licenses – Net | 123,856 | 113,830 | |||||||||
Other Intangible Assets – Net | 5,362 | 5,391 | |||||||||
Investments in and Advances to Equity Affiliates | 3,964 | 6,168 | |||||||||
Operating Lease Right-Of-Use Assets | 21,782 | 21,824 | |||||||||
Other Assets | 19,434 | 19,252 | |||||||||
Total Assets | $ | 426,463 | $ | 551,622 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | 9,626 | $ | 24,620 | |||||||
Note payable to DIRECTV | 271 | 1,245 | |||||||||
Accounts payable and accrued liabilities | 36,642 | 39,095 | |||||||||
Advanced billings and customer deposits | 3,705 | 3,966 | |||||||||
Dividends payable | 2,013 | 3,749 | |||||||||
Liabilities from discontinued operations | — | 33,555 | |||||||||
Total current liabilities | 52,257 | 106,230 | |||||||||
Long-Term Debt | 123,854 | 151,011 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||
Deferred income taxes | 56,055 | 53,767 | |||||||||
Postemployment benefit obligation | 6,152 | 12,560 | |||||||||
Operating lease liabilities | 18,741 | 18,956 | |||||||||
Other noncurrent liabilities | 29,426 | 25,243 | |||||||||
Total deferred credits and other noncurrent liabilities | 110,374 | 110,526 | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 7,621 | 7,621 | |||||||||
Additional paid-in capital | 122,933 | 130,112 | |||||||||
Retained earnings | 6,127 | 42,350 | |||||||||
Treasury stock | (17,148) | (17,280) | |||||||||
Accumulated other comprehensive income | 2,873 | 3,529 | |||||||||
Noncontrolling interest | 17,572 | 17,523 | |||||||||
Total stockholders’ equity | 139,978 | 183,855 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 426,463 | $ | 551,622 | |||||||
2
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Nine-Month Period | ||||||||||
2022 | 2021 | ||||||||||
Operating Activities | |||||||||||
Income from continuing operations | $ | 16,246 | $ | 18,574 | |||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | |||||||||||
Depreciation and amortization | 13,426 | 13,352 | |||||||||
Provision for uncollectible accounts | 1,323 | 857 | |||||||||
Deferred income tax expense | 2,947 | 5,234 | |||||||||
Net (gain) loss on investments, net of impairments | 412 | (298) | |||||||||
Pension and postretirement benefit expense (credit) | (2,484) | (2,875) | |||||||||
Actuarial (gain) loss on pension and postretirement benefits | (3,838) | (3,021) | |||||||||
Asset impairments and abandonments and restructuring | 745 | 105 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 1,021 | (101) | |||||||||
Other current assets | (799) | (484) | |||||||||
Accounts payable and other accrued liabilities | (3,261) | (2,660) | |||||||||
Equipment installment receivables and related sales | 906 | 715 | |||||||||
Deferred customer contract acquisition and fulfillment costs | (756) | 287 | |||||||||
Postretirement claims and contributions | (443) | (425) | |||||||||
Other - net | 19 | (167) | |||||||||
Total adjustments | 9,218 | 10,519 | |||||||||
Net Cash Provided by Operating Activities from Continuing Operations | 25,464 | 29,093 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (15,397) | (12,051) | |||||||||
Acquisitions, net of cash acquired | (9,959) | (23,533) | |||||||||
Dispositions | 49 | 7,061 | |||||||||
Distributions from DIRECTV in excess of cumulative equity in earnings | 2,205 | — | |||||||||
Other - net | 91 | (5) | |||||||||
Net Cash Used in Investing Activities from Continuing Operations | (23,011) | (28,528) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with original maturities of three months or less | 84 | 630 | |||||||||
Issuance of other short-term borrowings | 3,955 | 17,476 | |||||||||
Repayment of other short-term borrowings | (16,861) | (2,448) | |||||||||
Issuance of long-term debt | 479 | 9,931 | |||||||||
Repayment of long-term debt | (24,412) | (1,574) | |||||||||
Note payable to DIRECTV, net of payments | (1,070) | 1,439 | |||||||||
Payment of vendor financing | (4,237) | (4,013) | |||||||||
Purchase of treasury stock | (875) | (191) | |||||||||
Issuance of treasury stock | 28 | 89 | |||||||||
Dividends paid | (7,845) | (11,319) | |||||||||
Other - net | (3,649) | (1,567) | |||||||||
Net Cash (Used in) Provided by Financing Activities from Continuing Operations | (54,403) | 8,453 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash from continuing operations | (51,950) | 9,018 | |||||||||
Cash flows from Discontinued Operations: | |||||||||||
Cash (used in) provided by operating activities | (3,754) | 1,610 | |||||||||
Cash provided by (used in) investing activities | 1,029 | 1,195 | |||||||||
Cash provided by (used in) financing activities | 35,853 | (288) | |||||||||
Net increase in cash and cash equivalents and restricted cash from discontinued operations | 33,128 | 2,517 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (18,822) | $ | 11,535 | |||||||
Cash and cash equivalents and restricted cash beginning of year | 21,316 | 9,870 | |||||||||
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 2,494 | $ | 21,405 |
3
AT&T Inc. | ||||||||||||||||||||
Consolidated Supplementary Data | ||||||||||||||||||||
Supplementary Financial Data | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Capital expenditures | ||||||||||||||||||||
Purchase of property and equipment | $ | 5,874 | $ | 4,432 | 32.5 | % | $ | 15,273 | $ | 11,919 | 28.1 | % | ||||||||
Interest during construction - capital expenditures | 47 | 38 | 23.7 | % | 124 | 132 | (6.1) | % | ||||||||||||
Total Capital Expenditures | $ | 5,921 | $ | 4,470 | 32.5 | % | $ | 15,397 | $ | 12,051 | 27.8 | % | ||||||||
Acquisitions, net of cash acquired | ||||||||||||||||||||
Business acquisitions | $ | — | $ | — | — | % | $ | — | $ | — | — | % | ||||||||
Spectrum acquisitions | 111 | 131 | (15.3) | % | 9,076 | 23,017 | (60.6) | % | ||||||||||||
Interest during construction - spectrum | 278 | 259 | 7.3 | % | 883 | 516 | 71.1 | % | ||||||||||||
Total Acquisitions | $ | 389 | $ | 390 | (0.3) | % | $ | 9,959 | $ | 23,533 | (57.7) | % | ||||||||
Dividends Declared per Common Share | $ | 0.2775 | $ | 0.52 | (46.6) | % | $ | 0.8325 | $ | 1.56 | (46.6) | % | ||||||||
End of Period Common Shares Outstanding (000,000) | 7,126 | 7,140 | (0.2) | % | ||||||||||||||||
Debt Ratio | 48.8 | % | 49.5 | % | (70) | BP | ||||||||||||||
Total Employees | 169,880 | 177,309 | (4.2) | % | ||||||||||||||||
4
COMMUNICATIONS SEGMENT
The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline, and Consumer Wireline.
Results have been recast to refine the allocation of shared infrastructure costs between the Communications segment and Corporate and Other.
Results have been recast to refine the allocation of shared infrastructure costs between the Communications segment and Corporate and Other.
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Mobility | $ | 20,278 | $ | 19,138 | 6.0 | % | $ | 60,279 | $ | 57,108 | 5.6 | % | ||||||||
Business Wireline | 5,668 | 5,938 | (4.5) | % | 16,903 | 18,036 | (6.3) | % | ||||||||||||
Consumer Wireline | 3,185 | 3,142 | 1.4 | % | 9,520 | 9,380 | 1.5 | % | ||||||||||||
Total Segment Operating Revenues | 29,131 | 28,218 | 3.2 | % | 86,702 | 84,524 | 2.6 | % | ||||||||||||
Operating Income | ||||||||||||||||||||
Mobility | 6,419 | 5,987 | 7.2 | % | 18,484 | 18,038 | 2.5 | % | ||||||||||||
Business Wireline | 882 | 1,002 | (12.0) | % | 2,451 | 3,151 | (22.2) | % | ||||||||||||
Consumer Wireline | 330 | 179 | 84.4 | % | 951 | 794 | 19.8 | % | ||||||||||||
Total Operating Income | $ | 7,631 | $ | 7,168 | 6.5 | % | $ | 21,886 | $ | 21,983 | (0.4) | % | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Broadband | 15,112 | 15,050 | 0.4 | % | ||||||||||||||||
DSL | 340 | 460 | (26.1) | % | ||||||||||||||||
Total Broadband Connections | 15,452 | 15,510 | (0.4) | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 5,466 | 6,404 | (14.6) | % | ||||||||||||||||
U-verse Consumer VoIP Connections | 3,022 | 3,440 | (12.2) | % | ||||||||||||||||
Total Retail Voice Connections | 8,488 | 9,844 | (13.8) | % | ||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Broadband | (24) | 62 | — | % | 38 | 232 | (83.6) | % | ||||||||||||
DSL | (33) | (33) | — | % | (90) | (106) | 15.1 | % | ||||||||||||
Total Broadband Net Additions | (57) | 29 | — | % | (52) | 126 | — | % |
5
Mobility
Mobility provides nationwide wireless service and equipment.
Mobility Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 15,337 | $ | 14,527 | 5.6 | % | $ | 45,065 | $ | 42,921 | 5.0 | % | ||||||||
Equipment | 4,941 | 4,611 | 7.2 | % | 15,214 | 14,187 | 7.2 | % | ||||||||||||
Total Operating Revenues | 20,278 | 19,138 | 6.0 | % | 60,279 | 57,108 | 5.6 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 11,817 | 11,116 | 6.3 | % | 35,677 | 32,998 | 8.1 | % | ||||||||||||
Depreciation and amortization | 2,042 | 2,035 | 0.3 | % | 6,118 | 6,072 | 0.8 | % | ||||||||||||
Total Operating Expenses | 13,859 | 13,151 | 5.4 | % | 41,795 | 39,070 | 7.0 | % | ||||||||||||
Operating Income | $ | 6,419 | $ | 5,987 | 7.2 | % | $ | 18,484 | $ | 18,038 | 2.5 | % | ||||||||
Operating Income Margin | 31.7 | % | 31.3 | % | 40 | BP | 30.7 | % | 31.6 | % | (90) | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Mobility Subscribers | ||||||||||||||||||||
Postpaid | 83,614 | 80,249 | 4.2 | % | ||||||||||||||||
Postpaid phone | 68,969 | 66,396 | 3.9 | % | ||||||||||||||||
Prepaid | 19,215 | 19,028 | 1.0 | % | ||||||||||||||||
Reseller | 5,854 | 6,263 | (6.5) | % | ||||||||||||||||
Connected Devices | 101,995 | 90,979 | 12.1 | % | ||||||||||||||||
Total Mobility Subscribers1 | 210,678 | 196,519 | 7.2 | % | ||||||||||||||||
1Wireless subscribers at September 30, 2022 includes a reduction of 10,707 subscribers and connections (899 postpaid, including 438 phone, 234 prepaid, 749 reseller subscribers, and 8,825 connected devices) resulting from our 3G network shutdown in February 2022. The third quarter includes an adjustment of 170 subscribers, primarily connected devices. | ||||||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Mobility Net Additions | ||||||||||||||||||||
Postpaid Phone Net Additions | 708 | 928 | (23.7) | % | 2,212 | 2,312 | (4.3) | % | ||||||||||||
Total Phone Net Additions | 816 | 1,177 | (30.7) | % | 2,629 | 2,942 | (10.6) | % | ||||||||||||
Postpaid | 964 | 1,218 | (20.9) | % | 2,987 | 3,197 | (6.6) | % | ||||||||||||
Prepaid | 141 | 351 | (59.8) | % | 488 | 927 | (47.4) | % | ||||||||||||
Reseller | 308 | (164) | — | % | 312 | (357) | — | % | ||||||||||||
Connected Devices | 5,716 | 3,468 | 64.8 | % | 15,476 | 10,194 | 51.8 | % | ||||||||||||
Total Mobility Net Additions | 7,129 | 4,873 | 46.3 | % | 19,263 | 13,961 | 38.0 | % | ||||||||||||
Postpaid Churn | 1.01 | % | 0.92 | % | 9 | BP | 0.96 | % | 0.91 | % | 5 BP | |||||||||
Postpaid Phone-Only Churn | 0.84 | % | 0.72 | % | 12 | BP | 0.79 | % | 0.72 | % | 7 BP |
6
Business Wireline
Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as traditional voice and data services and related equipment to business customers.
Business Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 5,524 | $ | 5,765 | (4.2) | % | $ | 16,418 | $ | 17,497 | (6.2) | % | ||||||||
Equipment | 144 | 173 | (16.8) | % | 485 | 539 | (10.0) | % | ||||||||||||
Total Operating Revenues | 5,668 | 5,938 | (4.5) | % | 16,903 | 18,036 | (6.3) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 3,444 | 3,632 | (5.2) | % | 10,498 | 11,010 | (4.7) | % | ||||||||||||
Depreciation and amortization | 1,342 | 1,304 | 2.9 | % | 3,954 | 3,875 | 2.0 | % | ||||||||||||
Total Operating Expenses | 4,786 | 4,936 | (3.0) | % | 14,452 | 14,885 | (2.9) | % | ||||||||||||
Operating Income | $ | 882 | $ | 1,002 | (12.0) | % | $ | 2,451 | $ | 3,151 | (22.2) | % | ||||||||
Operating Income Margin | 15.6 | % | 16.9 | % | (130) | BP | 14.5 | % | 17.5 | % | (300) | BP |
7
Consumer Wireline
Consumer Wireline provides broadband services, including fiber connections that now provide our multi-gig services to residential customers. Consumer Wireline also provides legacy telephony voice communication services.
Consumer Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Broadband | $ | 2,429 | $ | 2,290 | 6.1 | % | $ | 7,177 | $ | 6,761 | 6.2 | % | ||||||||
Legacy voice and data services | 427 | 484 | (11.8) | % | 1,332 | 1,507 | (11.6) | % | ||||||||||||
Other service and equipment | 329 | 368 | (10.6) | % | 1,011 | 1,112 | (9.1) | % | ||||||||||||
Total Operating Revenues | 3,185 | 3,142 | 1.4 | % | 9,520 | 9,380 | 1.5 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 2,055 | 2,188 | (6.1) | % | 6,218 | 6,280 | (1.0) | % | ||||||||||||
Depreciation and amortization | 800 | 775 | 3.2 | % | 2,351 | 2,306 | 2.0 | % | ||||||||||||
Total Operating Expenses | 2,855 | 2,963 | (3.6) | % | 8,569 | 8,586 | (0.2) | % | ||||||||||||
Operating Income | $ | 330 | $ | 179 | 84.4 | % | $ | 951 | $ | 794 | 19.8 | % | ||||||||
Operating Income Margin | 10.4 | % | 5.7 | % | 470 | BP | 10.0 | % | 8.5 | % | 150 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Total Broadband and DSL Connections | 14,055 | 14,180 | (0.9) | % | ||||||||||||||||
Broadband | 13,796 | 13,846 | (0.4) | % | ||||||||||||||||
Fiber Broadband Connections | 6,935 | 5,721 | 21.2 | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 2,123 | 2,527 | (16.0) | % | ||||||||||||||||
U-verse Consumer VoIP Connections | 2,409 | 2,843 | (15.3) | % | ||||||||||||||||
Total Retail Consumer Voice Connections | 4,532 | 5,370 | (15.6) | % | ||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Total Broadband and DSL Net Additions | (50) | 6 | — | % | (105) | 80 | — | % | ||||||||||||
Broadband | (29) | 28 | — | % | (49) | 153 | — | % | ||||||||||||
Fiber Broadband Net Additions | 338 | 289 | 17.0 | % | 943 | 770 | 22.5 | % | ||||||||||||
8
Business Solutions
As a supplemental presentation to our Communications segment operating results, we are providing a view of our AT&T Business Solutions results which includes both wireless and fixed operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile solutions to serving our business customers.
Business Solutions Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 2,222 | $ | 2,059 | 7.9 | % | $ | 6,531 | $ | 6,053 | 7.9 | % | ||||||||
Wireline service | 5,524 | 5,765 | (4.2) | % | 16,418 | 17,497 | (6.2) | % | ||||||||||||
Wireless equipment | 859 | 813 | 5.7 | % | 2,632 | 2,384 | 10.4 | % | ||||||||||||
Wireline equipment | 144 | 173 | (16.8) | % | 485 | 539 | (10.0) | % | ||||||||||||
Total Operating Revenues | 8,749 | 8,810 | (0.7) | % | 26,066 | 26,473 | (1.5) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 5,531 | 5,581 | (0.9) | % | 16,823 | 16,743 | 0.5 | % | ||||||||||||
Depreciation and amortization | 1,699 | 1,651 | 2.9 | % | 5,025 | 4,903 | 2.5 | % | ||||||||||||
Total Operating Expenses | 7,230 | 7,232 | — | % | 21,848 | 21,646 | 0.9 | % | ||||||||||||
Operating Income | $ | 1,519 | $ | 1,578 | (3.7) | % | $ | 4,218 | $ | 4,827 | (12.6) | % | ||||||||
Operating Income Margin | 17.4 | % | 17.9 | % | (50) | BP | 16.2 | % | 18.2 | % | (200) | BP |
9
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 559 | $ | 463 | 20.7 | % | $ | 1,583 | $ | 1,349 | 17.3 | % | ||||||||
Wireless equipment | 226 | 261 | (13.4) | % | 700 | 694 | 0.9 | % | ||||||||||||
Total Segment Operating Revenues | 785 | 724 | 8.4 | % | 2,283 | 2,043 | 11.7 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 684 | 697 | (1.9) | % | 2,036 | 1,984 | 2.6 | % | ||||||||||||
Depreciation and amortization | 164 | 157 | 4.5 | % | 494 | 452 | 9.3 | % | ||||||||||||
Total Segment Operating Expenses | 848 | 854 | (0.7) | % | 2,530 | 2,436 | 3.9 | % | ||||||||||||
Operating Income (Loss) | $ | (63) | $ | (130) | 51.5 | % | $ | (247) | $ | (393) | 37.2 | % | ||||||||
Operating Income Margin | (8.0) | % | (18.0) | % | 1,000 | BP | (10.8) | % | (19.2) | % | 840 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
Mexico Wireless Subscribers | ||||||||||||||||||||
Postpaid | 4,854 | 4,781 | 1.5 | % | ||||||||||||||||
Prepaid | 15,689 | 14,199 | 10.5 | % | ||||||||||||||||
Reseller | 455 | 493 | (7.7) | % | ||||||||||||||||
Total Mexico Wireless Subscribers | 20,998 | 19,473 | 7.8 | % | ||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||
Mexico Wireless Net Additions | ||||||||||||||||||||
Postpaid | 19 | 36 | (47.2) | % | 47 | 85 | (44.7) | % | ||||||||||||
Prepaid | 267 | 389 | (31.4) | % | 632 | 441 | 43.3 | % | ||||||||||||
Reseller | 12 | 2 | — | % | (43) | 4 | — | % | ||||||||||||
Total Mexico Wireless Net Additions | 298 | 427 | (30.2) | % | 636 | 530 | 20.0 | % | ||||||||||||
10
SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 20,278 | $ | 11,817 | $ | 8,461 | $ | 2,042 | $ | 6,419 | |||||||
Business Wireline | 5,668 | 3,444 | 2,224 | 1,342 | 882 | ||||||||||||
Consumer Wireline | 3,185 | 2,055 | 1,130 | 800 | 330 | ||||||||||||
Total Communications | 29,131 | 17,316 | 11,815 | 4,184 | 7,631 | ||||||||||||
Latin America - Mexico | 785 | 684 | 101 | 164 | (63) | ||||||||||||
Segment Total | 29,916 | 18,000 | 11,916 | 4,348 | 7,568 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 197 | (197) | 139 | (336) | ||||||||||||
Parent administration support | (6) | 266 | (272) | 2 | (274) | ||||||||||||
Securitization fees | 15 | 103 | (88) | — | (88) | ||||||||||||
Value portfolio | 118 | 32 | 86 | 9 | 77 | ||||||||||||
Total Corporate | 127 | 598 | (471) | 150 | (621) | ||||||||||||
Reclassification of prior service credits | — | 731 | (731) | — | (731) | ||||||||||||
Merger & Significant Items | — | 188 | (188) | 16 | (204) | ||||||||||||
Total Corporate and Other | 127 | 1,517 | (1,390) | 166 | (1,556) | ||||||||||||
AT&T Inc. | $ | 30,043 | $ | 19,517 | $ | 10,526 | $ | 4,514 | $ | 6,012 | |||||||
11
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 19,138 | $ | 11,116 | $ | 8,022 | $ | 2,035 | $ | 5,987 | |||||||
Business Wireline | 5,938 | 3,632 | 2,306 | 1,304 | 1,002 | ||||||||||||
Consumer Wireline | 3,142 | 2,188 | 954 | 775 | 179 | ||||||||||||
Total Communications | 28,218 | 16,936 | 11,282 | 4,114 | 7,168 | ||||||||||||
Latin America - Mexico | 724 | 697 | 27 | 157 | (130) | ||||||||||||
Segment Total | 28,942 | 17,633 | 11,309 | 4,271 | 7,038 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | 20 | 69 | (49) | 92 | (141) | ||||||||||||
Parent administration support | — | 360 | (360) | 12 | (372) | ||||||||||||
Securitization fees | 16 | 1 | 15 | — | 15 | ||||||||||||
Value portfolio | 152 | 46 | 106 | 10 | 96 | ||||||||||||
Total Corporate | 188 | 476 | (288) | 114 | (402) | ||||||||||||
Video | 2,149 | 1,731 | 418 | 44 | 374 | ||||||||||||
Held-for-sale and other reclassifications | 64 | 31 | 33 | — | 33 | ||||||||||||
Reclassification of prior service credits | — | 670 | (670) | — | (670) | ||||||||||||
Merger & Significant Items | — | 108 | (108) | 28 | (136) | ||||||||||||
Eliminations and consolidations | (17) | (17) | — | — | — | ||||||||||||
Total Corporate and Other | 2,384 | 2,999 | (615) | 186 | (801) | ||||||||||||
AT&T Inc. | $ | 31,326 | $ | 20,632 | $ | 10,694 | $ | 4,457 | $ | 6,237 | |||||||
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SUPPLEMENTAL SEGMENT RECONCILIATION
Nine Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 60,279 | $ | 35,677 | $ | 24,602 | $ | 6,118 | $ | 18,484 | |||||||
Business Wireline | 16,903 | 10,498 | 6,405 | 3,954 | 2,451 | ||||||||||||
Consumer Wireline | 9,520 | 6,218 | 3,302 | 2,351 | 951 | ||||||||||||
Total Communications | 86,702 | 52,393 | 34,309 | 12,423 | 21,886 | ||||||||||||
Latin America - Mexico | 2,283 | 2,036 | 247 | 494 | (247) | ||||||||||||
Segment Total | 88,985 | 54,429 | 34,556 | 12,917 | 21,639 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | 8 | 532 | (524) | 408 | (932) | ||||||||||||
Parent administration support | (24) | 873 | (897) | 12 | (909) | ||||||||||||
Securitization fees | 48 | 263 | (215) | — | (215) | ||||||||||||
Value portfolio | 381 | 106 | 275 | 29 | 246 | ||||||||||||
Total Corporate | 413 | 1,774 | (1,361) | 449 | (1,810) | ||||||||||||
Reclassification of prior service credits | — | 1,961 | (1,961) | — | (1,961) | ||||||||||||
Merger & Significant Items | — | 1,303 | (1,303) | 60 | (1,363) | ||||||||||||
Total Corporate and Other | 413 | 5,038 | (4,625) | 509 | (5,134) | ||||||||||||
AT&T Inc. | $ | 89,398 | $ | 59,467 | $ | 29,931 | $ | 13,426 | $ | 16,505 | |||||||
13
Nine Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 57,108 | $ | 32,998 | $ | 24,110 | $ | 6,072 | $ | 18,038 | |||||||
Business Wireline | 18,036 | 11,010 | 7,026 | 3,875 | 3,151 | ||||||||||||
Consumer Wireline | 9,380 | 6,280 | 3,100 | 2,306 | 794 | ||||||||||||
Total Communications | 84,524 | 50,288 | 34,236 | 12,253 | 21,983 | ||||||||||||
Latin America - Mexico | 2,043 | 1,984 | 59 | 452 | (393) | ||||||||||||
Segment Total | 86,567 | 52,272 | 34,295 | 12,705 | 21,590 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | 20 | 69 | (49) | 92 | (141) | ||||||||||||
Parent administration support | (12) | 1,147 | (1,159) | 27 | (1,186) | ||||||||||||
Securitization fees | 44 | 53 | (9) | — | (9) | ||||||||||||
Value portfolio | 494 | 161 | 333 | 30 | 303 | ||||||||||||
Total Corporate | 546 | 1,430 | (884) | 149 | (1,033) | ||||||||||||
Video | 15,513 | 12,666 | 2,847 | 356 | 2,491 | ||||||||||||
Held-for-sale and other reclassifications | 453 | 306 | 147 | — | 147 | ||||||||||||
Reclassification of prior service credits | — | 2,011 | (2,011) | — | (2,011) | ||||||||||||
Merger & Significant Items | — | 39 | (39) | 142 | (181) | ||||||||||||
Eliminations and consolidations | (136) | (136) | — | — | — | ||||||||||||
Total Corporate and Other | 16,376 | 16,316 | 60 | 647 | (587) | ||||||||||||
AT&T Inc. | $ | 102,943 | $ | 68,588 | $ | 34,355 | $ | 13,352 | $ | 21,003 | |||||||
14