AT&T Inc. | ||||||||||||||||||||
Financial Data | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Dollars in millions except per share amounts | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 25,112 | $ | 24,731 | 1.5 | % | $ | 74,579 | $ | 72,998 | 2.2 | % | ||||||||
Equipment | 5,238 | 5,312 | (1.4) | % | 15,827 | 16,400 | (3.5) | % | ||||||||||||
Total Operating Revenues | 30,350 | 30,043 | 1.0 | % | 90,406 | 89,398 | 1.1 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||
Equipment | 5,219 | 5,440 | (4.1) | % | 15,933 | 17,010 | (6.3) | % | ||||||||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) | 6,835 | 6,761 | 1.1 | % | 20,279 | 20,267 | 0.1 | % | ||||||||||||
Selling, general and administrative | 7,205 | 7,202 | — | % | 21,389 | 21,445 | (0.3) | % | ||||||||||||
Asset impairments and abandonments and restructuring | 604 | 114 | — | % | 604 | 745 | (18.9) | % | ||||||||||||
Depreciation and amortization | 4,705 | 4,514 | 4.2 | % | 14,011 | 13,426 | 4.4 | % | ||||||||||||
Total Operating Expenses | 24,568 | 24,031 | 2.2 | % | 72,216 | 72,893 | (0.9) | % | ||||||||||||
Operating Income | 5,782 | 6,012 | (3.8) | % | 18,190 | 16,505 | 10.2 | % | ||||||||||||
Interest Expense | 1,662 | 1,420 | 17.0 | % | 4,978 | 4,548 | 9.5 | % | ||||||||||||
Equity in Net Income of Affiliates | 420 | 392 | 7.1 | % | 1,338 | 1,417 | (5.6) | % | ||||||||||||
Other Income (Expense) — Net | 440 | 2,270 | (80.6) | % | 2,362 | 6,729 | (64.9) | % | ||||||||||||
Income from Continuing Operations Before Income Taxes | 4,980 | 7,254 | (31.3) | % | 16,912 | 20,103 | (15.9) | % | ||||||||||||
Income tax expense on continuing operations | 1,154 | 908 | 27.1 | % | 3,871 | 3,857 | 0.4 | % | ||||||||||||
Income From Continuing Operations | 3,826 | 6,346 | (39.7) | % | 13,041 | 16,246 | (19.7) | % | ||||||||||||
Income (loss) from discontinued operations, net of tax | — | 53 | — | % | — | (146) | — | % | ||||||||||||
Net Income | 3,826 | 6,399 | (40.2) | % | 13,041 | 16,100 | (19.0) | % | ||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | (331) | (373) | 11.3 | % | (829) | (1,107) | 25.1 | % | ||||||||||||
Net Income Attributable to AT&T | $ | 3,495 | $ | 6,026 | (42.0) | % | $ | 12,212 | $ | 14,993 | (18.5) | % | ||||||||
Less: Preferred Stock Dividends | (51) | (49) | (4.1) | % | (155) | (149) | (4.0) | % | ||||||||||||
Net Income Attributable to Common Stock | $ | 3,444 | $ | 5,977 | (42.4) | % | $ | 12,057 | $ | 14,844 | (18.8) | % | ||||||||
Basic Earnings (Loss) Per Share Attributable to Common Stock | ||||||||||||||||||||
From continuing operations | $ | 0.48 | $ | 0.82 | (41.5) | % | $ | 1.67 | $ | 2.08 | (19.7) | % | ||||||||
From discontinued operations | $ | — | $ | 0.01 | — | % | $ | — | $ | (0.02) | — | % | ||||||||
$ | 0.48 | $ | 0.83 | (42.2) | % | $ | 1.67 | $ | 2.06 | (18.9) | % | |||||||||
Weighted Average Common Shares Outstanding (000,000) | 7,185 | 7,153 | 0.4 | % | 7,178 | 7,169 | 0.1 | % | ||||||||||||
Diluted Earnings (Loss) Per Share Attributable to Common Stock | ||||||||||||||||||||
From continuing operations | $ | 0.48 | $ | 0.79 | (39.2) | % | $ | 1.67 | $ | 2.03 | (17.7) | % | ||||||||
From discontinued operations | $ | — | $ | 0.01 | — | % | $ | — | $ | (0.02) | — | % | ||||||||
$ | 0.48 | $ | 0.80 | (40.0) | % | $ | 1.67 | $ | 2.01 | (16.9) | % | |||||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,185 | 7,647 | (6.0) | % | 7,280 | 7,605 | (4.3) | % | ||||||||||||
1
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Balance Sheets | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Sep. 30, | Dec. 31, | |||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 7,540 | $ | 3,701 | |||||||
Accounts receivable – net of related allowances for credit loss of $484 and $588 | 8,962 | 11,466 | |||||||||
Inventories | 2,520 | 3,123 | |||||||||
Prepaid and other current assets | 16,598 | 14,818 | |||||||||
Total current assets | 35,620 | 33,108 | |||||||||
Property, Plant and Equipment – Net | 128,496 | 127,445 | |||||||||
Goodwill – Net | 67,854 | 67,895 | |||||||||
Licenses – Net | 127,113 | 124,092 | |||||||||
Other Intangible Assets – Net | 5,332 | 5,354 | |||||||||
Investments in and Advances to Equity Affiliates | 1,847 | 3,533 | |||||||||
Operating Lease Right-Of-Use Assets | 21,001 | 21,814 | |||||||||
Other Assets | 19,435 | 19,612 | |||||||||
Total Assets | $ | 406,698 | $ | 402,853 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | 11,302 | $ | 7,467 | |||||||
Note payable to DIRECTV | — | 130 | |||||||||
Accounts payable and accrued liabilities | 34,659 | 42,644 | |||||||||
Advanced billings and customer deposits | 3,703 | 3,918 | |||||||||
Dividends payable | 2,020 | 2,014 | |||||||||
Total current liabilities | 51,684 | 56,173 | |||||||||
Long-Term Debt | 126,701 | 128,423 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||
Deferred income taxes | 58,671 | 57,032 | |||||||||
Postemployment benefit obligation | 6,494 | 7,260 | |||||||||
Operating lease liabilities | 17,730 | 18,659 | |||||||||
Other noncurrent liabilities | 25,591 | 28,849 | |||||||||
Total deferred credits and other noncurrent liabilities | 108,486 | 111,800 | |||||||||
Redeemable Noncontrolling Interest | 1,972 | — | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 7,621 | 7,621 | |||||||||
Additional paid-in capital | 116,890 | 123,610 | |||||||||
Retained (deficit) earnings | (7,203) | (19,415) | |||||||||
Treasury stock | (16,150) | (17,082) | |||||||||
Accumulated other comprehensive income | 2,545 | 2,766 | |||||||||
Noncontrolling interest | 14,152 | 8,957 | |||||||||
Total stockholders’ equity | 117,855 | 106,457 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 406,698 | $ | 402,853 | |||||||
2
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Nine-Month Period | ||||||||||
2023 | 2022 | ||||||||||
Operating Activities | |||||||||||
Income from continuing operations | $ | 13,041 | $ | 16,246 | |||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: | |||||||||||
Depreciation and amortization | 14,011 | 13,426 | |||||||||
Provision for uncollectible accounts | 1,409 | 1,323 | |||||||||
Deferred income tax expense | 3,163 | 2,947 | |||||||||
Net (gain) loss on investments, net of impairments | 335 | 412 | |||||||||
Pension and postretirement benefit expense (credit) | (1,966) | (2,529) | |||||||||
Actuarial and settlement (gain) loss on pension and postretirement benefits - net | (145) | (3,838) | |||||||||
Asset impairments and abandonments and restructuring | 604 | 745 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 1,173 | 1,021 | |||||||||
Other current assets | 57 | (799) | |||||||||
Accounts payable and other accrued liabilities | (5,062) | (3,261) | |||||||||
Equipment installment receivables and related sales | (56) | 906 | |||||||||
Deferred customer contract acquisition and fulfillment costs | 47 | (756) | |||||||||
Postretirement claims and contributions | (715) | (443) | |||||||||
Other - net | 1,040 | 64 | |||||||||
Total adjustments | 13,895 | 9,218 | |||||||||
Net Cash Provided by Operating Activities from Continuing Operations | 26,936 | 25,464 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (13,252) | (15,397) | |||||||||
Acquisitions, net of cash acquired | (923) | (9,959) | |||||||||
Dispositions | 66 | 49 | |||||||||
Distributions from DIRECTV in excess of cumulative equity in earnings | 1,447 | 2,205 | |||||||||
(Purchases), sales and settlements of securities and investments - net | (1,043) | 93 | |||||||||
Other - net | (81) | (2) | |||||||||
Net Cash Used in Investing Activities from Continuing Operations | (13,786) | (23,011) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with original maturities of three months or less | (914) | 84 | |||||||||
Issuance of other short-term borrowings | 5,406 | 3,955 | |||||||||
Repayment of other short-term borrowings | (979) | (16,861) | |||||||||
Issuance of long-term debt | 9,633 | 479 | |||||||||
Repayment of long-term debt | (11,889) | (24,412) | |||||||||
Repayment of note payable to DIRECTV | (130) | (1,070) | |||||||||
Payment of vendor financing | (4,736) | (4,237) | |||||||||
Purchase of treasury stock | (190) | (875) | |||||||||
Issuance of treasury stock | 3 | 28 | |||||||||
Issuance of preferred interests in subsidiary | 7,151 | — | |||||||||
Redemption of preferred interests in subsidiary | (5,333) | — | |||||||||
Dividends paid | (6,116) | (7,845) | |||||||||
Other - net | (1,190) | (3,649) | |||||||||
Net Cash Used in Financing Activities from Continuing Operations | (9,284) | (54,403) | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash from continuing operations | 3,866 | (51,950) | |||||||||
Cash flows from Discontinued Operations: | |||||||||||
Cash (used in) provided by operating activities | — | (3,754) | |||||||||
Cash provided by (used in) investing activities | — | 1,029 | |||||||||
Cash provided by (used in) financing activities | — | 35,853 | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | — | 33,128 | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | $ | 3,866 | $ | (18,822) | |||||||
Cash and cash equivalents and restricted cash beginning of year | 3,793 | 21,316 | |||||||||
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 7,659 | $ | 2,494 |
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 | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Capital expenditures | ||||||||||||||||||||
Purchase of property and equipment | $ | 4,601 | $ | 5,874 | (21.7) | % | $ | 13,116 | $ | 15,273 | (14.1) | % | ||||||||
Interest during construction - capital expenditures | 46 | 47 | (2.1) | % | 136 | 124 | 9.7 | % | ||||||||||||
Total Capital Expenditures | $ | 4,647 | $ | 5,921 | (21.5) | % | $ | 13,252 | $ | 15,397 | (13.9) | % | ||||||||
Acquisitions, net of cash acquired | ||||||||||||||||||||
Business acquisitions | $ | — | $ | — | — | % | $ | — | $ | — | — | % | ||||||||
Spectrum acquisitions | 241 | 111 | — | % | 309 | 9,076 | (96.6) | % | ||||||||||||
Interest during construction - spectrum | 167 | 278 | (39.9) | % | 614 | 883 | (30.5) | % | ||||||||||||
Total Acquisitions | $ | 408 | $ | 389 | 4.9 | % | $ | 923 | $ | 9,959 | (90.7) | % | ||||||||
Cash paid for interest - continuing operations | $ | 2,099 | $ | 1,953 | 7.5 | % | $ | 5,703 | $ | 5,981 | (4.6) | % | ||||||||
Cash paid for income taxes, net of refunds - continuing operations | $ | 423 | $ | 62 | — | % | $ | 758 | $ | 400 | 89.5 | % | ||||||||
Dividends Declared per Common Share | $ | 0.2775 | $ | 0.2775 | — | % | $ | 0.8325 | $ | 0.8325 | — | % | ||||||||
End of Period Common Shares Outstanding (000,000) | 7,150 | 7,126 | 0.3 | % | ||||||||||||||||
Debt Ratio | 53.5 | % | 48.8 | % | 470 | BP | ||||||||||||||
Total Employees | 152,740 | 169,880 | (10.1) | % | ||||||||||||||||
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 remove prior service credits from our historical reporting.
Segment Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Segment Operating Revenues | ||||||||||||||||||||
Mobility | $ | 20,692 | $ | 20,278 | 2.0 | % | $ | 61,589 | $ | 60,279 | 2.2 | % | ||||||||
Business Wireline | 5,221 | 5,668 | (7.9) | % | 15,831 | 16,903 | (6.3) | % | ||||||||||||
Consumer Wireline | 3,331 | 3,185 | 4.6 | % | 9,821 | 9,520 | 3.2 | % | ||||||||||||
Total Segment Operating Revenues | 29,244 | 29,131 | 0.4 | % | 87,241 | 86,702 | 0.6 | % | ||||||||||||
Segment Operating Income | ||||||||||||||||||||
Mobility | 6,763 | 6,226 | 8.6 | % | 19,647 | 17,963 | 9.4 | % | ||||||||||||
Business Wireline | 350 | 621 | (43.6) | % | 1,124 | 1,750 | (35.8) | % | ||||||||||||
Consumer Wireline | 160 | 142 | 12.7 | % | 422 | 446 | (5.4) | % | ||||||||||||
Total Segment Operating Income | $ | 7,273 | $ | 6,989 | 4.1 | % | $ | 21,193 | $ | 20,159 | 5.1 | % | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Broadband | 15,065 | 15,112 | (0.3) | % | ||||||||||||||||
DSL | 231 | 340 | (32.1) | % | ||||||||||||||||
Total Broadband Connections | 15,296 | 15,452 | (1.0) | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 4,421 | 5,466 | (19.1) | % | ||||||||||||||||
Consumer VoIP Connections | 2,649 | 3,022 | (12.3) | % | ||||||||||||||||
Total Retail Consumer Voice Connections | 7,070 | 8,488 | (16.7) | % | ||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Broadband | 20 | (24) | — | % | (10) | 38 | — | % | ||||||||||||
DSL | (28) | (33) | 15.2 | % | (80) | (90) | 11.1 | % | ||||||||||||
Total Broadband Net Additions | (8) | (57) | 86.0 | % | (90) | (52) | (73.1) | % | ||||||||||||
5
Mobility
Mobility provides nationwide wireless service and equipment.
Mobility Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 15,908 | $ | 15,337 | 3.7 | % | $ | 47,136 | $ | 45,065 | 4.6 | % | ||||||||
Equipment | 4,784 | 4,941 | (3.2) | % | 14,453 | 15,214 | (5.0) | % | ||||||||||||
Total Operating Revenues | 20,692 | 20,278 | 2.0 | % | 61,589 | 60,279 | 2.2 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 11,795 | 12,010 | (1.8) | % | 35,587 | 36,198 | (1.7) | % | ||||||||||||
Depreciation and amortization | 2,134 | 2,042 | 4.5 | % | 6,355 | 6,118 | 3.9 | % | ||||||||||||
Total Operating Expenses | 13,929 | 14,052 | (0.9) | % | 41,942 | 42,316 | (0.9) | % | ||||||||||||
Operating Income | $ | 6,763 | $ | 6,226 | 8.6 | % | $ | 19,647 | $ | 17,963 | 9.4 | % | ||||||||
Operating Income Margin | 32.7 | % | 30.7 | % | 200 | BP | 31.9 | % | 29.8 | % | 210 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Mobility Subscribers | ||||||||||||||||||||
Postpaid | 86,365 | 83,614 | 3.3 | % | ||||||||||||||||
Postpaid phone | 70,757 | 68,969 | 2.6 | % | ||||||||||||||||
Prepaid | 19,391 | 19,215 | 0.9 | % | ||||||||||||||||
Reseller | 7,101 | 5,854 | 21.3 | % | ||||||||||||||||
Connected Devices | 122,728 | 101,995 | 20.3 | % | ||||||||||||||||
Total Mobility Subscribers1 | 235,585 | 210,678 | 11.8 | % | ||||||||||||||||
1Wireless subscribers at September 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. | ||||||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Mobility Net Additions | ||||||||||||||||||||
Postpaid Phone Net Additions | 468 | 708 | (33.9) | % | 1,218 | 2,212 | (44.9) | % | ||||||||||||
Total Phone Net Additions | 494 | 816 | (39.5) | % | 1,407 | 2,629 | (46.5) | % | ||||||||||||
Postpaid | 550 | 964 | (42.9) | % | 1,556 | 2,987 | (47.9) | % | ||||||||||||
Prepaid | 56 | 141 | (60.3) | % | 263 | 488 | (46.1) | % | ||||||||||||
Reseller | 401 | 308 | 30.2 | % | 941 | 312 | — | % | ||||||||||||
Connected Devices | 5,547 | 5,716 | (3.0) | % | 15,133 | 15,476 | (2.2) | % | ||||||||||||
Total Mobility Net Additions | 6,554 | 7,129 | (8.1) | % | 17,893 | 19,263 | (7.1) | % | ||||||||||||
Postpaid Churn | 0.95 | % | 1.01 | % | (6) | BP | 0.97 | % | 0.96 | % | 1 BP | |||||||||
Postpaid Phone-Only Churn | 0.79 | % | 0.84 | % | (5) | BP | 0.80 | % | 0.79 | % | 1 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 | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Service | $ | 5,087 | $ | 5,524 | (7.9) | % | $ | 15,401 | $ | 16,418 | (6.2) | % | ||||||||
Equipment | 134 | 144 | (6.9) | % | 430 | 485 | (11.3) | % | ||||||||||||
Total Operating Revenues | 5,221 | 5,668 | (7.9) | % | 15,831 | 16,903 | (6.3) | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 3,526 | 3,705 | (4.8) | % | 10,699 | 11,199 | (4.5) | % | ||||||||||||
Depreciation and amortization | 1,345 | 1,342 | 0.2 | % | 4,008 | 3,954 | 1.4 | % | ||||||||||||
Total Operating Expenses | 4,871 | 5,047 | (3.5) | % | 14,707 | 15,153 | (2.9) | % | ||||||||||||
Operating Income | $ | 350 | $ | 621 | (43.6) | % | $ | 1,124 | $ | 1,750 | (35.8) | % | ||||||||
Operating Income Margin | 6.7 | % | 11.0 | % | (430) | BP | 7.1 | % | 10.4 | % | (330) | BP |
7
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.
Consumer Wireline Results | ||||||||||||||||||||
Dollars in millions | ||||||||||||||||||||
Unaudited | Third Quarter | Percent | Nine-Month Period | Percent | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Broadband | $ | 2,667 | $ | 2,429 | 9.8 | % | $ | 7,755 | $ | 7,177 | 8.1 | % | ||||||||
Legacy voice and data services | 368 | 427 | (13.8) | % | 1,147 | 1,332 | (13.9) | % | ||||||||||||
Other service and equipment | 296 | 329 | (10.0) | % | 919 | 1,011 | (9.1) | % | ||||||||||||
Total Operating Revenues | 3,331 | 3,185 | 4.6 | % | 9,821 | 9,520 | 3.2 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 2,300 | 2,243 | 2.5 | % | 6,810 | 6,723 | 1.3 | % | ||||||||||||
Depreciation and amortization | 871 | 800 | 8.9 | % | 2,589 | 2,351 | 10.1 | % | ||||||||||||
Total Operating Expenses | 3,171 | 3,043 | 4.2 | % | 9,399 | 9,074 | 3.6 | % | ||||||||||||
Operating Income | $ | 160 | $ | 142 | 12.7 | % | $ | 422 | $ | 446 | (5.4) | % | ||||||||
Operating Income Margin | 4.8 | % | 4.5 | % | 30 | BP | 4.3 | % | 4.7 | % | (40) | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Broadband Connections | ||||||||||||||||||||
Total Broadband and DSL Connections | 13,887 | 14,055 | (1.2) | % | ||||||||||||||||
Broadband | 13,710 | 13,796 | (0.6) | % | ||||||||||||||||
Fiber Broadband Connections | 8,034 | 6,935 | 15.8 | % | ||||||||||||||||
Voice Connections | ||||||||||||||||||||
Retail Consumer Switched Access Lines | 1,737 | 2,123 | (18.2) | % | ||||||||||||||||
Consumer VoIP Connections | 2,035 | 2,409 | (15.5) | % | ||||||||||||||||
Total Retail Consumer Voice Connections | 3,772 | 4,532 | (16.8) | % | ||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Broadband Net Additions | ||||||||||||||||||||
Total Broadband and DSL Net Additions | (8) | (50) | 84.0 | % | (104) | (105) | 1.0 | % | ||||||||||||
Broadband Net Additions | 15 | (29) | — | % | (43) | (49) | 12.2 | % | ||||||||||||
Fiber Broadband Net Additions | 296 | 338 | (12.4) | % | 819 | 943 | (13.1) | % | ||||||||||||
8
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 | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Operating Revenues | ||||||||||||||||||||
Wireless service | $ | 672 | $ | 559 | 20.2 | % | $ | 1,898 | $ | 1,583 | 19.9 | % | ||||||||
Wireless equipment | 320 | 226 | 41.6 | % | 944 | 700 | 34.9 | % | ||||||||||||
Total Segment Operating Revenues | 992 | 785 | 26.4 | % | 2,842 | 2,283 | 24.5 | % | ||||||||||||
Operating Expenses | ||||||||||||||||||||
Operations and support | 837 | 684 | 22.4 | % | 2,396 | 2,036 | 17.7 | % | ||||||||||||
Depreciation and amortization | 184 | 164 | 12.2 | % | 544 | 494 | 10.1 | % | ||||||||||||
Total Segment Operating Expenses | 1,021 | 848 | 20.4 | % | 2,940 | 2,530 | 16.2 | % | ||||||||||||
Operating Income (Loss) | $ | (29) | $ | (63) | 54.0 | % | $ | (98) | $ | (247) | 60.3 | % | ||||||||
Operating Income Margin | (2.9) | % | (8.0) | % | 510 | BP | (3.4) | % | (10.8) | % | 740 | BP | ||||||||
Supplementary Operating Data | ||||||||||||||||||||
Subscribers and connections in thousands | ||||||||||||||||||||
Unaudited | September 30, | Percent | ||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||
Mexico Wireless Subscribers | ||||||||||||||||||||
Postpaid | 5,085 | 4,854 | 4.8 | % | ||||||||||||||||
Prepaid | 16,213 | 15,689 | 3.3 | % | ||||||||||||||||
Reseller | 456 | 455 | 0.2 | % | ||||||||||||||||
Total Mexico Wireless Subscribers | 21,754 | 20,998 | 3.6 | % | ||||||||||||||||
Third Quarter | Percent | Nine-Month Period | Percent | |||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||
Mexico Wireless Net Additions | ||||||||||||||||||||
Postpaid | 55 | 19 | — | % | 160 | 47 | — | % | ||||||||||||
Prepaid | 17 | 267 | (93.6) | % | 9 | 632 | (98.6) | % | ||||||||||||
Reseller | (7) | 12 | — | % | (18) | (43) | 58.1 | % | ||||||||||||
Total Mexico Wireless Net Additions | 65 | 298 | (78.2) | % | 151 | 636 | (76.3) | % | ||||||||||||
9
SUPPLEMENTAL SEGMENT RECONCILIATION
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
September 30, 2023 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 20,692 | $ | 11,795 | $ | 8,897 | $ | 2,134 | $ | 6,763 | |||||||
Business Wireline | 5,221 | 3,526 | 1,695 | 1,345 | 350 | ||||||||||||
Consumer Wireline | 3,331 | 2,300 | 1,031 | 871 | 160 | ||||||||||||
Total Communications | 29,244 | 17,621 | 11,623 | 4,350 | 7,273 | ||||||||||||
Latin America - Mexico | 992 | 837 | 155 | 184 | (29) | ||||||||||||
Segment Total | 30,236 | 18,458 | 11,778 | 4,534 | 7,244 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 167 | (167) | 144 | (311) | ||||||||||||
Parent administration support | (1) | 333 | (334) | 1 | (335) | ||||||||||||
Securitization fees | 25 | 164 | (139) | — | (139) | ||||||||||||
Value portfolio | 90 | 25 | 65 | 5 | 60 | ||||||||||||
Total Corporate | 114 | 689 | (575) | 150 | (725) | ||||||||||||
Certain significant items | — | 716 | (716) | 21 | (737) | ||||||||||||
Total Corporate and Other | 114 | 1,405 | (1,291) | 171 | (1,462) | ||||||||||||
AT&T Inc. | $ | 30,350 | $ | 19,863 | $ | 10,487 | $ | 4,705 | $ | 5,782 | |||||||
September 30, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 20,278 | $ | 12,010 | $ | 8,268 | $ | 2,042 | $ | 6,226 | |||||||
Business Wireline | 5,668 | 3,705 | 1,963 | 1,342 | 621 | ||||||||||||
Consumer Wireline | 3,185 | 2,243 | 942 | 800 | 142 | ||||||||||||
Total Communications | 29,131 | 17,958 | 11,173 | 4,184 | 6,989 | ||||||||||||
Latin America - Mexico | 785 | 684 | 101 | 164 | (63) | ||||||||||||
Segment Total | 29,916 | 18,642 | 11,274 | 4,348 | 6,926 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 235 | (235) | 139 | (374) | ||||||||||||
Parent administration support | (6) | 317 | (323) | 2 | (325) | ||||||||||||
Securitization fees | 15 | 103 | (88) | — | (88) | ||||||||||||
Value portfolio | 118 | 32 | 86 | 9 | 77 | ||||||||||||
Total Corporate | 127 | 687 | (560) | 150 | (710) | ||||||||||||
Certain significant items | — | 188 | (188) | 16 | (204) | ||||||||||||
Total Corporate and Other | 127 | 875 | (748) | 166 | (914) | ||||||||||||
AT&T Inc. | $ | 30,043 | $ | 19,517 | $ | 10,526 | $ | 4,514 | $ | 6,012 | |||||||
10
SUPPLEMENTAL SEGMENT RECONCILIATION
Nine Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
September 30, 2023 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 61,589 | $ | 35,587 | $ | 26,002 | $ | 6,355 | $ | 19,647 | |||||||
Business Wireline | 15,831 | 10,699 | 5,132 | 4,008 | 1,124 | ||||||||||||
Consumer Wireline | 9,821 | 6,810 | 3,011 | 2,589 | 422 | ||||||||||||
Total Communications | 87,241 | 53,096 | 34,145 | 12,952 | 21,193 | ||||||||||||
Latin America - Mexico | 2,842 | 2,396 | 446 | 544 | (98) | ||||||||||||
Segment Total | 90,083 | 55,492 | 34,591 | 13,496 | 21,095 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | — | 514 | (514) | 440 | (954) | ||||||||||||
Parent administration support | (13) | 1,039 | (1,052) | 4 | (1,056) | ||||||||||||
Securitization fees | 61 | 439 | (378) | — | (378) | ||||||||||||
Value portfolio | 275 | 77 | 198 | 16 | 182 | ||||||||||||
Total Corporate | 323 | 2,069 | (1,746) | 460 | (2,206) | ||||||||||||
Certain significant items | — | 644 | (644) | 55 | (699) | ||||||||||||
Total Corporate and Other | 323 | 2,713 | (2,390) | 515 | (2,905) | ||||||||||||
AT&T Inc. | $ | 90,406 | $ | 58,205 | $ | 32,201 | $ | 14,011 | $ | 18,190 | |||||||
September 30, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 60,279 | $ | 36,198 | $ | 24,081 | $ | 6,118 | $ | 17,963 | |||||||
Business Wireline | 16,903 | 11,199 | 5,704 | 3,954 | 1,750 | ||||||||||||
Consumer Wireline | 9,520 | 6,723 | 2,797 | 2,351 | 446 | ||||||||||||
Total Communications | 86,702 | 54,120 | 32,582 | 12,423 | 20,159 | ||||||||||||
Latin America - Mexico | 2,283 | 2,036 | 247 | 494 | (247) | ||||||||||||
Segment Total | 88,985 | 56,156 | 32,829 | 12,917 | 19,912 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | 8 | 634 | (626) | 408 | (1,034) | ||||||||||||
Parent administration support | (24) | 1,005 | (1,029) | 12 | (1,041) | ||||||||||||
Securitization fees | 48 | 263 | (215) | — | (215) | ||||||||||||
Value portfolio | 381 | 106 | 275 | 29 | 246 | ||||||||||||
Total Corporate | 413 | 2,008 | (1,595) | 449 | (2,044) | ||||||||||||
Certain significant items | — | 1,303 | (1,303) | 60 | (1,363) | ||||||||||||
Total Corporate and Other | 413 | 3,311 | (2,898) | 509 | (3,407) | ||||||||||||
AT&T Inc. | $ | 89,398 | $ | 59,467 | $ | 29,931 | $ | 13,426 | $ | 16,505 | |||||||
11