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| AT&T Inc. | | | | | | |
| Financial Data | | | | | | |
| | | | | | |
| Consolidated Statements of Income |
| Dollars in millions except per share amounts | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Operating Revenues | | | | | | |
| Service | $ | 24,850 | | $ | 24,268 | | 2.4 | % | $ | 49,467 | | $ | 48,267 | | 2.5 | % |
| Equipment | 5,067 | | 5,375 | | (5.7) | % | 10,589 | | 11,088 | | (4.5) | % |
| Total Operating Revenues | 29,917 | | 29,643 | | 0.9 | % | 60,056 | | 59,355 | | 1.2 | % |
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| Operating Expenses | | | | | | |
| Cost of revenues | | | | | | |
| Equipment | 5,056 | | 5,534 | | (8.6) | % | 10,714 | | 11,570 | | (7.4) | % |
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Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 6,771 | | 6,807 | | (0.5) | % | 13,444 | | 13,506 | | (0.5) | % |
| Selling, general and administrative | 7,009 | | 7,265 | | (3.5) | % | 14,184 | | 14,243 | | (0.4) | % |
Asset impairments and abandonments
and restructuring | — | | 631 | | — | % | — | | 631 | | — | % |
| Depreciation and amortization | 4,675 | | 4,450 | | 5.1 | % | 9,306 | | 8,912 | | 4.4 | % |
| Total Operating Expenses | 23,511 | | 24,687 | | (4.8) | % | 47,648 | | 48,862 | | (2.5) | % |
| Operating Income | 6,406 | | 4,956 | | 29.3 | % | 12,408 | | 10,493 | | 18.3 | % |
| Interest Expense | 1,608 | | 1,502 | | 7.1 | % | 3,316 | | 3,128 | | 6.0 | % |
| Equity in Net Income of Affiliates | 380 | | 504 | | (24.6) | % | 918 | | 1,025 | | (10.4) | % |
| Other Income (Expense) — Net | 987 | | 2,302 | | (57.1) | % | 1,922 | | 4,459 | | (56.9) | % |
Income from Continuing Operations Before Income Taxes | 6,165 | | 6,260 | | (1.5) | % | 11,932 | | 12,849 | | (7.1) | % |
| Income tax expense on continuing operations | 1,403 | | 1,509 | | (7.0) | % | 2,717 | | 2,949 | | (7.9) | % |
| Income From Continuing Operations | 4,762 | | 4,751 | | 0.2 | % | 9,215 | | 9,900 | | (6.9) | % |
| Income (loss) from discontinued operations, net of tax | — | | (214) | | — | % | — | | (199) | | — | % |
| Net Income | 4,762 | | 4,537 | | 5.0 | % | 9,215 | | 9,701 | | (5.0) | % |
Less: Net Income Attributable to Noncontrolling Interest | (273) | | (380) | | 28.2 | % | (498) | | (734) | | 32.2 | % |
| Net Income Attributable to AT&T | $ | 4,489 | | $ | 4,157 | | 8.0 | % | $ | 8,717 | | $ | 8,967 | | (2.8) | % |
| Less: Preferred Stock Dividends | (52) | | (52) | | — | % | (104) | | (100) | | (4.0) | % |
| Net Income Attributable to Common Stock | $ | 4,437 | | $ | 4,105 | | 8.1 | % | $ | 8,613 | | $ | 8,867 | | (2.9) | % |
| | | | | | |
Basic Earnings (Loss) Per Share Attributable to Common Stock | | | | | | |
| From continuing operations | $ | 0.61 | | $ | 0.60 | | 1.7 | % | $ | 1.19 | | $ | 1.26 | | (5.6) | % |
| From discontinued operations | $ | — | | $ | (0.03) | | — | % | $ | — | | $ | (0.03) | | — | % |
| $ | 0.61 | | $ | 0.57 | | 7.0 | % | $ | 1.19 | | $ | 1.23 | | (3.3) | % |
Weighted Average Common Shares Outstanding (000,000) | 7,180 | | 7,169 | | 0.2 | % | 7,174 | | 7,176 | | — | % |
Diluted Earnings (Loss) Per Share Attributable to Common Stock | | | | | | |
| From continuing operations | $ | 0.61 | | $ | 0.59 | | 3.4 | % | $ | 1.19 | | $ | 1.23 | | (3.3) | % |
| From discontinued operations | $ | — | | $ | (0.03) | | — | % | $ | — | | $ | (0.02) | | — | % |
| $ | 0.61 | | $ | 0.56 | | 8.9 | % | $ | 1.19 | | $ | 1.21 | | (1.7) | % |
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,180 | | 7,611 | | (5.7) | % | 7,327 | | 7,584 | | (3.4) | % |
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| AT&T Inc. | | | |
| Financial Data | | | |
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| Consolidated Balance Sheets |
| Dollars in millions | |
| Unaudited | Jun. 30, | | Dec. 31, |
| 2023 | | 2022 |
| Assets | | | |
| Current Assets | | | |
| Cash and cash equivalents | $ | 9,528 | | | $ | 3,701 | |
| Accounts receivable – net of related allowances for credit loss of $528 and $588 | 9,304 | | | 11,466 | |
| Inventories | 2,348 | | | 3,123 | |
| Prepaid and other current assets | 15,492 | | | 14,818 | |
| Total current assets | 36,672 | | | 33,108 | |
| Property, Plant and Equipment – Net | 128,783 | | | 127,445 | |
| Goodwill – Net | 67,854 | | | 67,895 | |
| Licenses – Net | 125,049 | | | 124,092 | |
| Other Intangible Assets – Net | 5,339 | | | 5,354 | |
| Investments in and Advances to Equity Affiliates | 2,779 | | | 3,533 | |
| Operating Lease Right-Of-Use Assets | 21,581 | | | 21,814 | |
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| Other Assets | 20,396 | | | 19,612 | |
| Total Assets | $ | 408,453 | | | $ | 402,853 | |
| Liabilities and Stockholders’ Equity | | | |
| Current Liabilities | | | |
| Debt maturing within one year | $ | 15,268 | | | $ | 7,467 | |
| Note payable to DIRECTV | — | | | 130 | |
| Accounts payable and accrued liabilities | 33,038 | | | 42,644 | |
| Advanced billings and customer deposits | 3,833 | | | 3,918 | |
| Dividends payable | 2,020 | | | 2,014 | |
| Total current liabilities | 54,159 | | | 56,173 | |
| Long-Term Debt | 128,012 | | | 128,423 | |
| Deferred Credits and Other Noncurrent Liabilities | | | |
| Deferred income taxes | 57,972 | | | 57,032 | |
| Postemployment benefit obligation | 6,696 | | | 7,260 | |
| Operating lease liabilities | 18,311 | | | 18,659 | |
| Other noncurrent liabilities | 25,258 | | | 28,849 | |
| Total deferred credits and other noncurrent liabilities | 108,237 | | | 111,800 | |
| Redeemable Noncontrolling Interest | 1,970 | | | — | |
| Stockholders’ Equity | | | |
| Preferred stock | — | | | — | |
| Common stock | 7,621 | | | 7,621 | |
| Additional paid-in capital | 118,833 | | | 123,610 | |
| Retained (deficit) earnings | (10,698) | | | (19,415) | |
| Treasury stock | (16,158) | | | (17,082) | |
| Accumulated other comprehensive income | 2,305 | | | 2,766 | |
| Noncontrolling interest | 14,172 | | | 8,957 | |
| Total stockholders’ equity | 116,075 | | | 106,457 | |
| Total Liabilities and Stockholders’ Equity | $ | 408,453 | | | $ | 402,853 | |
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| AT&T Inc. | | | |
| Financial Data | | | |
| | | |
| Consolidated Statements of Cash Flows |
| Dollars in millions | |
| Unaudited | Six-Month Period |
| 2023 | | 2022 |
| Operating Activities | | | |
| Income from continuing operations | $ | 9,215 | | | $ | 9,900 | |
Adjustments to reconcile income from continuing operations to net cash provided by
operating activities from continuing operations: | | | |
| Depreciation and amortization | 9,306 | | | 8,912 | |
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| Provision for uncollectible accounts | 929 | | | 870 | |
| Deferred income tax expense | 1,836 | | | 2,324 | |
| Net (gain) loss on investments, net of impairments | (160) | | | 333 | |
| Pension and postretirement benefit expense (credit) | (1,341) | | | (1,735) | |
| Actuarial and settlement (gain) loss on pension and postretirement benefits - net | (74) | | | (2,398) | |
| Asset impairments and abandonments and restructuring | — | | | 631 | |
| Changes in operating assets and liabilities: | | | |
| Receivables | 1,342 | | | 1,292 | |
| Other current assets | 1,106 | | | 11 | |
| Accounts payable and other accrued liabilities | (5,769) | | | (3,905) | |
| Equipment installment receivables and related sales | (302) | | | 342 | |
| Deferred customer contract acquisition and fulfillment costs | 34 | | | (506) | |
| Postretirement claims and contributions | (556) | | | (186) | |
| Other - net | 1,034 | | | (515) | |
| Total adjustments | 7,385 | | | 5,470 | |
| Net Cash Provided by Operating Activities from Continuing Operations | 16,600 | | | 15,370 | |
| | | |
| Investing Activities | | | |
| Capital expenditures | (8,605) | | | (9,476) | |
| Acquisitions, net of cash acquired | (515) | | | (9,570) | |
| Dispositions | 16 | | | 22 | |
| Distributions from DIRECTV in excess of cumulative equity in earnings | 974 | | | 1,638 | |
| (Purchases), sales and settlements of securities and investments - net | (1,056) | | | 73 | |
| Other - net | (55) | | | 2 | |
| Net Cash Used in Investing Activities from Continuing Operations | (9,241) | | | (17,311) | |
| | | |
| Financing Activities | | | |
| Net change in short-term borrowings with original maturities of three months or less | (914) | | | 172 | |
| Issuance of other short-term borrowings | 5,406 | | | 2,593 | |
| Repayment of other short-term borrowings | (867) | | | (15,613) | |
| Issuance of long-term debt | 9,633 | | | 479 | |
| Repayment of long-term debt | (7,609) | | | (24,213) | |
| Repayment of note payable to DIRECTV | (130) | | | (722) | |
| Payment of vendor financing | (3,756) | | | (3,337) | |
| Purchase of treasury stock | (189) | | | (872) | |
| Issuance of treasury stock | 3 | | | 28 | |
| Issuance of preferred interests in subsidiary | 7,151 | | | — | |
| Redemption of preferred interests in subsidiary | (5,333) | | | — | |
| Dividends paid | (4,097) | | | (5,835) | |
| Other - net | (828) | | | (2,144) | |
| Net Cash Used in Financing Activities from Continuing Operations | (1,530) | | | (49,464) | |
| Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations | 5,829 | | | (51,405) | |
| Cash flows from Discontinued Operations: | | | |
| Cash (used in) provided by operating activities | — | | | (3,731) | |
| Cash provided by (used in) investing activities | — | | | 872 | |
| Cash provided by (used in) financing activities | — | | | 37,065 | |
| Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | — | | | 34,206 | |
| Net increase (decrease) in cash and cash equivalents and restricted cash | $ | 5,829 | | | $ | (17,199) | |
| Cash and cash equivalents and restricted cash beginning of year | 3,793 | | | 21,316 | |
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | 9,622 | | | $ | 4,117 | |
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| AT&T Inc. | | | |
| Consolidated Supplementary Data | | | |
| | | | | | |
| Supplementary Financial Data |
| Dollars in millions except per share amounts | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Capital expenditures | | | | | | |
| Purchase of property and equipment | $ | 4,224 | | $ | 4,867 | | (13.2) | % | $ | 8,515 | | $ | 9,399 | | (9.4) | % |
| Interest during construction - capital expenditures | 46 | | 41 | | 12.2 | % | 90 | | 77 | | 16.9 | % |
| Total Capital Expenditures | $ | 4,270 | | $ | 4,908 | | (13.0) | % | $ | 8,605 | | $ | 9,476 | | (9.2) | % |
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| Acquisitions, net of cash acquired | | | | | | |
| Business acquisitions | $ | — | | $ | — | | — | % | $ | — | | $ | — | | — | % |
| Spectrum acquisitions | 5 | | 9 | | (44.4) | % | 68 | | 8,965 | | (99.2) | % |
| Interest during construction - spectrum | 219 | | 317 | | (30.9) | % | 447 | | 605 | | (26.1) | % |
| Total Acquisitions | $ | 224 | | $ | 326 | | (31.3) | % | $ | 515 | | $ | 9,570 | | (94.6) | % |
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| Cash paid for interest - continuing operations | $ | 1,633 | | $ | 1,874 | | (12.9) | % | $ | 3,604 | | $ | 4,028 | | (10.5) | % |
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| Cash paid for income taxes, net of refunds - continuing operations | $ | 325 | | $ | 266 | | 22.2 | % | $ | 335 | | $ | 338 | | (0.9) | % |
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| Dividends Declared per Common Share | $ | 0.2775 | | $ | 0.2775 | | — | % | $ | 0.5550 | | $ | 0.5550 | | — | % |
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| End of Period Common Shares Outstanding (000,000) | | | | 7,149 | | 7,126 | | 0.3 | % |
| Debt Ratio | | | | 54.8 | % | 50.1 | % | 470 | BP |
| Total Employees | | | | 156,630 | | 172,400 | | (9.1) | % |
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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 remove prior service credits from our historical reporting.
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| Segment Results |
| Dollars in millions | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Segment Operating Revenues | | | | | | |
| Mobility | $ | 20,315 | | $ | 19,926 | | 2.0 | % | $ | 40,897 | | $ | 40,001 | | 2.2 | % |
| Business Wireline | 5,279 | | 5,595 | | (5.6) | % | 10,610 | | 11,235 | | (5.6) | % |
| Consumer Wireline | 3,251 | | 3,174 | | 2.4 | % | 6,490 | | 6,335 | | 2.4 | % |
| Total Segment Operating Revenues | 28,845 | | 28,695 | | 0.5 | % | 57,997 | | 57,571 | | 0.7 | % |
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| Segment Operating Income | | | | | | |
| Mobility | 6,613 | | 6,048 | | 9.3 | % | 12,884 | | 11,737 | | 9.8 | % |
| Business Wireline | 396 | | 490 | | (19.2) | % | 774 | | 1,129 | | (31.4) | % |
| Consumer Wireline | 168 | | 145 | | 15.9 | % | 262 | | 304 | | (13.8) | % |
| Total Segment Operating Income | $ | 7,177 | | $ | 6,683 | | 7.4 | % | $ | 13,920 | | $ | 13,170 | | 5.7 | % |
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| Supplementary Operating Data |
| Subscribers and connections in thousands | | | | | |
| Unaudited | | | | June 30, | Percent |
| | | | 2023 | 2022 | Change |
| Broadband Connections | | | | | | |
| Broadband | | | | 15,045 | | 15,136 | | (0.6) | % |
| DSL | | | | 259 | | 373 | | (30.6) | % |
| Total Broadband Connections | | | | 15,304 | | 15,509 | | (1.3) | % |
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| Voice Connections | | | | | | |
| Retail Consumer Switched Access Lines | | | | 4,677 | | 5,725 | | (18.3) | % |
| U-verse Consumer VoIP Connections | | | | 2,749 | | 3,124 | | (12.0) | % |
| Total Retail Consumer Voice Connections | | | | 7,426 | | 8,849 | | (16.1) | % |
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| Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Broadband Net Additions | | | | | | |
| Broadband | (16) | | 6 | | — | % | (30) | | 62 | | — | % |
| DSL | (25) | | (30) | | 16.7 | % | (52) | | (57) | | 8.8 | % |
| Total Broadband Net Additions | (41) | | (24) | | (70.8) | % | (82) | | 5 | | — | % |
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Mobility
Mobility provides nationwide wireless service and equipment.
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| Mobility Results |
| Dollars in millions | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Operating Revenues | | | | | | |
| Service | $ | 15,745 | | $ | 15,004 | | 4.9 | % | $ | 31,228 | | $ | 29,728 | | 5.0 | % |
| Equipment | 4,570 | | 4,922 | | (7.2) | % | 9,669 | | 10,273 | | (5.9) | % |
| Total Operating Revenues | 20,315 | | 19,926 | | 2.0 | % | 40,897 | | 40,001 | | 2.2 | % |
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| Operating Expenses | | | | | | |
| Operations and support | 11,579 | | 11,861 | | (2.4) | % | 23,792 | | 24,188 | | (1.6) | % |
| Depreciation and amortization | 2,123 | | 2,017 | | 5.3 | % | 4,221 | | 4,076 | | 3.6 | % |
| Total Operating Expenses | 13,702 | | 13,878 | | (1.3) | % | 28,013 | | 28,264 | | (0.9) | % |
| Operating Income | $ | 6,613 | | $ | 6,048 | | 9.3 | % | $ | 12,884 | | $ | 11,737 | | 9.8 | % |
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| Operating Income Margin | 32.6 | % | 30.4 | % | 220 | BP | 31.5 | % | 29.3 | % | 220 | BP |
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| Supplementary Operating Data |
| Subscribers and connections in thousands | | | | | |
| Unaudited | | | June 30, | Percent |
| | | | 2023 | 2022 | Change |
| Mobility Subscribers | | | | | | |
| Postpaid | | | | 85,846 | | 82,694 | | 3.8 | % |
| Postpaid phone | | | | 70,331 | | 68,311 | | 3.0 | % |
| Prepaid | | | | 19,352 | | 19,095 | | 1.3 | % |
| Reseller | | | | 6,656 | | 5,480 | | 21.5 | % |
| Connected Devices | | | | 117,177 | | 96,104 | | 21.9 | % |
Total Mobility Subscribers1 | | | | 229,031 | | 203,373 | | 12.6 | % |
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1Wireless subscribers at June 30, 2023 includes an increase of 295 subscribers and connections (206 postpaid, including 74 phone, and 89 connected devices) resulting from our 3G network shutdown. |
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| Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Mobility Net Additions | | | | | | |
| Postpaid Phone Net Additions | 326 | | 813 | | (59.9) | % | 750 | | 1,504 | | (50.1) | % |
| Total Phone Net Additions | 449 | | 1,009 | | (55.5) | % | 913 | | 1,813 | | (49.6) | % |
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| Postpaid | 464 | | 1,058 | | (56.1) | % | 1,006 | | 2,023 | | (50.3) | % |
| Prepaid | 167 | | 231 | | (27.7) | % | 207 | | 347 | | (40.3) | % |
| Reseller | 432 | | 21 | | — | % | 540 | | 4 | | — | % |
| Connected Devices | 5,129 | | 5,292 | | (3.1) | % | 9,586 | | 9,760 | | (1.8) | % |
| Total Mobility Net Additions | 6,192 | | 6,602 | | (6.2) | % | 11,339 | | 12,134 | | (6.6) | % |
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| Postpaid Churn | 0.95 | % | 0.93 | % | 2 | BP | 0.97 | % | 0.93 | % | 4 BP |
| Postpaid Phone-Only Churn | 0.79 | % | 0.75 | % | 4 | BP | 0.80 | % | 0.77 | % | 3 BP |
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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.
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| Business Wireline Results |
| Dollars in millions | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Operating Revenues | | | | | | |
| Service | $ | 5,114 | | $ | 5,416 | | (5.6) | % | $ | 10,314 | | $ | 10,894 | | (5.3) | % |
| Equipment | 165 | | 179 | | (7.8) | % | 296 | | 341 | | (13.2) | % |
| Total Operating Revenues | 5,279 | | 5,595 | | (5.6) | % | 10,610 | | 11,235 | | (5.6) | % |
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| Operating Expenses | | | | | | |
| Operations and support | 3,550 | | 3,792 | | (6.4) | % | 7,173 | | 7,494 | | (4.3) | % |
| Depreciation and amortization | 1,333 | | 1,313 | | 1.5 | % | 2,663 | | 2,612 | | 2.0 | % |
| Total Operating Expenses | 4,883 | | 5,105 | | (4.3) | % | 9,836 | | 10,106 | | (2.7) | % |
| Operating Income | $ | 396 | | $ | 490 | | (19.2) | % | $ | 774 | | $ | 1,129 | | (31.4) | % |
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| Operating Income Margin | 7.5 | % | 8.8 | % | (130) | BP | 7.3 | % | 10.0 | % | (270) | BP |
Consumer Wireline
Consumer Wireline provides broadband services, including fiber connections that provide our multi-gig services to residential customers in select locations. Consumer Wireline also provides legacy telephony voice communication services.
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| Consumer Wireline Results |
| Dollars in millions | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Operating Revenues | | | | | | |
| Broadband | $ | 2,561 | | $ | 2,393 | | 7.0 | % | $ | 5,088 | | $ | 4,748 | | 7.2 | % |
| Legacy voice and data services | 383 | | 445 | | (13.9) | % | 779 | | 905 | | (13.9) | % |
| Other service and equipment | 307 | | 336 | | (8.6) | % | 623 | | 682 | | (8.7) | % |
| Total Operating Revenues | 3,251 | | 3,174 | | 2.4 | % | 6,490 | | 6,335 | | 2.4 | % |
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| Operating Expenses | | | | | | |
| Operations and support | 2,226 | | 2,244 | | (0.8) | % | 4,510 | | 4,480 | | 0.7 | % |
| Depreciation and amortization | 857 | | 785 | | 9.2 | % | 1,718 | | 1,551 | | 10.8 | % |
| Total Operating Expenses | 3,083 | | 3,029 | | 1.8 | % | 6,228 | | 6,031 | | 3.3 | % |
| Operating Income | $ | 168 | | $ | 145 | | 15.9 | % | $ | 262 | | $ | 304 | | (13.8) | % |
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| Operating Income Margin | 5.2 | % | 4.6 | % | 60 | BP | 4.0 | % | 4.8 | % | (80) | BP |
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| Supplementary Operating Data |
| Subscribers and connections in thousands | | | | | |
| Unaudited | | | | June 30, | Percent |
| | | | 2023 | 2022 | Change |
| Broadband Connections | | | | | | |
| Total Broadband and DSL Connections | | | | 13,895 | | 14,105 | | (1.5) | % |
| Broadband | | | | 13,695 | | 13,825 | | (0.9) | % |
| Fiber Broadband Connections | | | | 7,738 | | 6,597 | | 17.3 | % |
| | | | | | |
| Voice Connections | | | | | | |
| Retail Consumer Switched Access Lines | | | | 1,829 | | 2,228 | | (17.9) | % |
| U-verse Consumer VoIP Connections | | | | 2,126 | | 2,521 | | (15.7) | % |
| Total Retail Consumer Voice Connections | | | | 3,955 | | 4,749 | | (16.7) | % |
| | | | | | |
| Second Quarter | Percent | Six-Month Period | Percent |
| 2023 | 2022 | Change | 2023 | 2022 | Change |
| Broadband Net Additions | | | | | | |
| Total Broadband and DSL Net Additions | (54) | | (43) | | (25.6) | % | (96) | | (55) | | (74.5) | % |
| Broadband | (35) | | (25) | | (40.0) | % | (58) | | (20) | | — | % |
| Fiber Broadband Net Additions | 251 | | 316 | | (20.6) | % | 523 | | 605 | | (13.6) | % |
|
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
| | | | | | | | | | | | | | | | | | | | |
| Segment Results |
| Dollars in millions | | | | | |
| Unaudited | Second Quarter | Percent | Six-Month Period | Percent |
| | 2023 | 2022 | Change | 2023 | 2022 | Change |
| Operating Revenues | | | | | | |
| Wireless service | $ | 635 | | $ | 534 | | 18.9 | % | $ | 1,226 | | $ | 1,024 | | 19.7 | % |
| Wireless equipment | 332 | | 274 | | 21.2 | % | 624 | | 474 | | 31.6 | % |
| Total Segment Operating Revenues | 967 | | 808 | | 19.7 | % | 1,850 | | 1,498 | | 23.5 | % |
| | | | | | |
| Operating Expenses | | | | | | |
| Operations and support | 821 | | 721 | | 13.9 | % | 1,559 | | 1,352 | | 15.3 | % |
| Depreciation and amortization | 185 | | 169 | | 9.5 | % | 360 | | 330 | | 9.1 | % |
| Total Segment Operating Expenses | 1,006 | | 890 | | 13.0 | % | 1,919 | | 1,682 | | 14.1 | % |
| Operating Income (Loss) | $ | (39) | | $ | (82) | | 52.4 | % | $ | (69) | | $ | (184) | | 62.5 | % |
| | | | | | |
| Operating Income Margin | (4.0) | % | (10.1) | % | 610 | BP | (3.7) | % | (12.3) | % | 860 | BP |
| | | |
| Supplementary Operating Data |
| Subscribers and connections in thousands | | | | | |
| Unaudited | | | | June 30, | Percent |
| | | | | 2023 | 2022 | Change |
| Mexico Wireless Subscribers | | | | | | |
| Postpaid | | | | 5,030 | | 4,835 | | 4.0 | % |
| Prepaid | | | | 16,196 | | 15,422 | | 5.0 | % |
| Reseller | | | | 463 | | 443 | | 4.5 | % |
| Total Mexico Wireless Subscribers | | | | 21,689 | | 20,700 | | 4.8 | % |
| | | | | | |
| | Second Quarter | Percent | Six-Month Period | Percent |
| | 2023 | 2022 | Change | 2023 | 2022 | Change |
| Mexico Wireless Net Additions | | | | | | |
| Postpaid | 56 | | 25 | | — | % | 105 | | 28 | | — | % |
| Prepaid | 50 | | 187 | | (73.3) | % | (8) | | 365 | | — | % |
| Reseller | (30) | | (15) | | — | % | (11) | | (55) | | 80.0 | % |
| Total Mexico Wireless Net Additions | 76 | | 197 | | (61.4) | % | 86 | | 338 | | (74.6) | % |
| | | | | | |
SUPPLEMENTAL SEGMENT RECONCILIATION
| | | | | | | | | | | | | | | | | |
| Three Months Ended |
| Dollars in millions | | | | | |
| Unaudited | | | | | |
| June 30, 2023 | | | | | |
| Revenues | Operations
and Support
Expenses | EBITDA | Depreciation
and
Amortization | Operating
Income (Loss) |
| Communications | | | | | |
| Mobility | $ | 20,315 | | $ | 11,579 | | $ | 8,736 | | $ | 2,123 | | $ | 6,613 | |
| Business Wireline | 5,279 | | 3,550 | | 1,729 | | 1,333 | | 396 | |
| Consumer Wireline | 3,251 | | 2,226 | | 1,025 | | 857 | | 168 | |
| Total Communications | 28,845 | | 17,355 | | 11,490 | | 4,313 | | 7,177 | |
| Latin America - Mexico | 967 | | 821 | | 146 | | 185 | | (39) | |
| Segment Total | 29,812 | | 18,176 | | 11,636 | | 4,498 | | 7,138 | |
| Corporate and Other | | | | | |
| Corporate: | | | | | |
| DTV-related retained costs | — | | 178 | | (178) | | 152 | | (330) | |
| Parent administration support | (3) | | 332 | | (335) | | 2 | | (337) | |
| Securitization fees | 17 | | 154 | | (137) | | — | | (137) | |
| Value portfolio | 91 | | 24 | | 67 | | 6 | | 61 | |
| Total Corporate | 105 | | 688 | | (583) | | 160 | | (743) | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Certain significant items | — | | (28) | | 28 | | 17 | | 11 | |
| | | | | |
| Total Corporate and Other | 105 | | 660 | | (555) | | 177 | | (732) | |
| AT&T Inc. | $ | 29,917 | | $ | 18,836 | | $ | 11,081 | | $ | 4,675 | | $ | 6,406 | |
| | | | | |
| | | | | |
| June 30, 2022 | | | | | |
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) |
| Communications | | | | | |
| Mobility | $ | 19,926 | | $ | 11,861 | | $ | 8,065 | | $ | 2,017 | | $ | 6,048 | |
| Business Wireline | 5,595 | | 3,792 | | 1,803 | | 1,313 | | 490 | |
| Consumer Wireline | 3,174 | | 2,244 | | 930 | | 785 | | 145 | |
| Total Communications | 28,695 | | 17,897 | | 10,798 | | 4,115 | | 6,683 | |
| Latin America - Mexico | 808 | | 721 | | 87 | | 169 | | (82) | |
| Segment Total | 29,503 | | 18,618 | | 10,885 | | 4,284 | | 6,601 | |
| Corporate and Other | | | | | |
| Corporate: | | | | | |
| DTV-related retained costs | — | | 239 | | (239) | | 135 | | (374) | |
| Parent administration support | (6) | | 341 | | (347) | | 4 | | (351) | |
| Securitization fees | 17 | | 78 | | (61) | | — | | (61) | |
| Value portfolio | 129 | | 37 | | 92 | | 10 | | 82 | |
| Total Corporate | 140 | | 695 | | (555) | | 149 | | (704) | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Certain significant items | — | | 924 | | (924) | | 17 | | (941) | |
| | | | | |
| Total Corporate and Other | 140 | | 1,619 | | (1,479) | | 166 | | (1,645) | |
| AT&T Inc. | $ | 29,643 | | $ | 20,237 | | $ | 9,406 | | $ | 4,450 | | $ | 4,956 | |
| | | | | |
SUPPLEMENTAL SEGMENT RECONCILIATION
| | | | | | | | | | | | | | | | | |
| Six Months Ended |
| Dollars in millions | | | | | |
| Unaudited | | | | | |
| June 30, 2023 | | | | | |
| Revenues | Operations
and Support
Expenses | EBITDA | Depreciation
and
Amortization | Operating
Income (Loss) |
| Communications | | | | | |
| Mobility | $ | 40,897 | | $ | 23,792 | | $ | 17,105 | | $ | 4,221 | | $ | 12,884 | |
| Business Wireline | 10,610 | | 7,173 | | 3,437 | | 2,663 | | 774 | |
| Consumer Wireline | 6,490 | | 4,510 | | 1,980 | | 1,718 | | 262 | |
| Total Communications | 57,997 | | 35,475 | | 22,522 | | 8,602 | | 13,920 | |
| Latin America - Mexico | 1,850 | | 1,559 | | 291 | | 360 | | (69) | |
| Segment Total | 59,847 | | 37,034 | | 22,813 | | 8,962 | | 13,851 | |
| Corporate and Other | | | | | |
| Corporate: | | | | | |
| DTV-related retained costs | — | | 347 | | (347) | | 296 | | (643) | |
| Parent administration support | (12) | | 706 | | (718) | | 3 | | (721) | |
| Securitization fees | 36 | | 275 | | (239) | | — | | (239) | |
| Value portfolio | 185 | | 52 | | 133 | | 11 | | 122 | |
| Total Corporate | 209 | | 1,380 | | (1,171) | | 310 | | (1,481) | |
| | | | | |
| | | | | |
| Certain significant items | — | | (72) | | 72 | | 34 | | 38 | |
| | | | | |
| Total Corporate and Other | 209 | | 1,308 | | (1,099) | | 344 | | (1,443) | |
| AT&T Inc. | $ | 60,056 | | $ | 38,342 | | $ | 21,714 | | $ | 9,306 | | $ | 12,408 | |
| | | | | |
| | | | | |
| June 30, 2022 | | | | | |
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) |
| Communications | | | | | |
| Mobility | $ | 40,001 | | $ | 24,188 | | $ | 15,813 | | $ | 4,076 | | $ | 11,737 | |
| Business Wireline | 11,235 | | 7,494 | | 3,741 | | 2,612 | | 1,129 | |
| Consumer Wireline | 6,335 | | 4,480 | | 1,855 | | 1,551 | | 304 | |
| Total Communications | 57,571 | | 36,162 | | 21,409 | | 8,239 | | 13,170 | |
| Latin America - Mexico | 1,498 | | 1,352 | | 146 | | 330 | | (184) | |
| Segment Total | 59,069 | | 37,514 | | 21,555 | | 8,569 | | 12,986 | |
| Corporate and Other | | | | | |
| Corporate: | | | | | |
| DTV-related retained costs | 8 | | 399 | | (391) | | 269 | | (660) | |
| Parent administration support | (18) | | 688 | | (706) | | 10 | | (716) | |
| Securitization fees | 33 | | 160 | | (127) | | — | | (127) | |
| Value portfolio | 263 | | 74 | | 189 | | 20 | | 169 | |
| Total Corporate | 286 | | 1,321 | | (1,035) | | 299 | | (1,334) | |
| Certain significant items | — | | 1,115 | | (1,115) | | 44 | | (1,159) | |
| Total Corporate and Other | 286 | | 2,436 | | (2,150) | | 343 | | (2,493) | |
| AT&T Inc. | $ | 59,355 | | $ | 39,950 | | $ | 19,405 | | $ | 8,912 | | $ | 10,493 | |
| | | | | |
