AT&T (T) 8-K AT&T Third-Quarter Results Show Continued 5G and Fiber Subscriber Momentum

AT&T Inc.
Financial Data
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2024		2023		Change		2024		2023		Change
Operating Revenues
Service	$	25,134	$	25,112	0.1	%	$	74,982	$	74,579	0.5	%
Equipment	5,079		5,238		(3.0)	%	15,056		15,827		(4.9)	%
Total Operating Revenues	30,213		30,350		(0.5)	%	90,038		90,406		(0.4)	%
Operating Expenses
Cost of revenues
Equipment	4,933		5,219		(5.5)	%	14,891		15,933		(6.5)	%
Other cost of revenues (exclusive of depreciation    and amortization shown separately below)	6,697		6,835		(2.0)	%	20,135		20,279		(0.7)	%
Selling, general and administrative	6,958		7,205		(3.4)	%	21,022		21,389		(1.7)	%
Asset impairments and abandonments and restructuring	4,422		604		—	%	5,061		604		—	%
Depreciation and amortization	5,087		4,705		8.1	%	15,206		14,011		8.5	%
Total Operating Expenses	28,097		24,568		14.4	%	76,315		72,216		5.7	%
Operating Income	2,116		5,782		(63.4)	%	13,723		18,190		(24.6)	%
Interest Expense	1,675		1,662		0.8	%	5,098		4,978		2.4	%
Equity in Net Income of Affiliates	272		420		(35.2)	%	915		1,338		(31.6)	%
Other Income (Expense) — Net	717		440		63.0	%	1,850		2,362		(21.7)	%
Income Before Income Taxes	1,430		4,980		(71.3)	%	11,390		16,912		(32.7)	%
Income Tax Expense	1,285		1,154		11.4	%	3,545		3,871		(8.4)	%
Net Income	145		3,826		(96.2)	%	7,845		13,041		(39.8)	%
Less: Net Income Attributable to Noncontrolling Interest	(319)		(331)		3.6	%	(977)		(829)		(17.9)	%
Net Income (Loss) Attributable to AT&T	$	(174)	$	3,495	—	%	$	6,868	$	12,212	(43.8)	%
Less: Preferred Stock Dividends	(52)		(51)		(2.0)	%	(153)		(155)		1.3	%
Net Income (Loss) Attributable to Common Stock	$	(226)	$	3,444	—	%	$	6,715	$	12,057	(44.3)	%
Basic Earnings (Loss) Per Share Attributable to Common Stock	$	(0.03)	$	0.48	—	%	$	0.93	$	1.67	(44.3)	%
Weighted Average Common Shares Outstanding (000,000)	7,202		7,185		0.2	%	7,197		7,178		0.3	%
Diluted Earnings (Loss) Per Share Attributable to Common Stock	$	(0.03)	$	0.48	—	%	$	0.93	$	1.67	(44.3)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)	7,208		7,185		0.3	%	7,200		7,280		(1.1)	%

1

AT&T Inc.
Financial Data
Consolidated Balance Sheets
Dollars in millions
	Sep. 30,		Dec. 31,
	2024		2023
Assets	(Unaudited)
Current Assets
Cash and cash equivalents	$	2,586	$	6,722
Accounts receivable – net of related allowances for credit loss of $403 and $499	9,068		10,289
Inventories	2,529		2,177
Prepaid and other current assets	15,616		17,270
Total current assets	29,799		36,458
Property, Plant and Equipment – Net	127,964		128,489
Goodwill – Net	63,432		67,854
Licenses – Net	127,134		127,219
Other Intangible Assets – Net	5,256		5,283
Investments in and Advances to Equity Affiliates	281		1,251
Operating Lease Right-Of-Use Assets	20,779		20,905
Other Assets	19,074		19,601
Total Assets	$	393,719	$	407,060
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	2,637	$	9,477
Accounts payable and accrued liabilities	31,935		35,852
Advanced billings and customer deposits	4,059		3,778
Dividends payable	2,027		2,020
Total current liabilities	40,658		51,127
Long-Term Debt	126,375		127,854
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	58,461		58,666
Postemployment benefit obligation	8,750		8,734
Operating lease liabilities	17,331		17,568
Other noncurrent liabilities	23,884		23,696
Total deferred credits and other noncurrent liabilities	108,426		108,664
Redeemable Noncontrolling Interest	1,978		1,973
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	109,354		114,519
Retained (deficit) earnings	(185)		(5,015)
Treasury stock	(15,087)		(16,128)
Accumulated other comprehensive income	648		2,300
Noncontrolling interest	13,931		14,145
Total stockholders’ equity	116,282		117,442
Total Liabilities and Stockholders’ Equity	$	393,719	$	407,060

2

AT&T Inc.
Financial Data
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Nine-Month Period
	2024		2023
Operating Activities
Net income	$	7,845	$	13,041
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,206		14,011
Provision for uncollectible accounts	1,431		1,409
Deferred income tax expense	1,811		3,163
Net (gain) loss on investments, net of impairments	88		335
Pension and postretirement benefit expense (credit)	(1,412)		(1,966)
Actuarial and settlement (gain) loss on pension and postretirement benefits - net	—		(145)
Asset impairments and abandonments and restructuring	5,061		604
Changes in operating assets and liabilities:
Receivables	574		1,173
Inventories, prepaid and other current assets	147		57
Accounts payable and other accrued liabilities	(4,503)		(5,062)
Equipment installment receivables and related sales	(899)		(56)
Deferred customer contract acquisition and fulfillment costs	490		47
Postretirement claims and contributions	(129)		(715)
Other - net	1,165		1,040
Total adjustments	19,030		13,895
Net Cash Provided by Operating Activities	26,875		26,936
Investing Activities
Capital expenditures	(13,420)		(13,252)
Acquisitions, net of cash acquired	(322)		(923)
Dispositions	66		66
Distributions from DIRECTV in excess of cumulative equity in earnings	928		1,447
(Purchases), sales and settlements of securities and investments - net	1,153		(1,043)
Other - net	(532)		(81)
Net Cash Used in Investing Activities	(12,127)		(13,786)
Financing Activities
Net change in short-term borrowings with original maturities of three months or less	—		(914)
Issuance of other short-term borrowings	491		5,406
Repayment of other short-term borrowings	(2,487)		(979)
Issuance of long-term debt	4		9,633
Repayment of long-term debt	(7,113)		(11,889)
Repayment of note payable to DIRECTV	—		(130)
Payment of vendor financing	(1,571)		(4,736)
Purchase of treasury stock	(202)		(190)
Issuance of treasury stock	2		3
Issuance of preferred interests in subsidiary	—		7,151
Redemption of preferred interests in subsidiary	—		(5,333)
Dividends paid	(6,171)		(6,116)
Other - net	(1,808)		(1,190)
Net Cash Used in Financing Activities	(18,855)		(9,284)
Net increase (decrease) in cash and cash equivalents and restricted cash	(4,107)		3,866
Cash and cash equivalents and restricted cash beginning of year	6,833		3,793
Cash and Cash Equivalents and Restricted Cash End of Period	$	2,726	$	7,659

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
	2024		2023		Change		2024			2023			Change
Capital expenditures
Purchase of property and equipment	$	5,259	$	4,601	14.3	%	$	13,301		$	13,116		1.4	%
Interest during construction	43		46		(6.5)	%	119			136			(12.5)	%
Total Capital Expenditures	$	5,302	$	4,647	14.1	%	$	13,420		$	13,252		1.3	%
Acquisitions, net of cash acquired
Business acquisitions	$	—	$	—	—	%	$	—		$	—		—	%
Spectrum acquisitions	6		241		(97.5)	%	153			309			(50.5)	%
Interest during construction - spectrum	46		167		(72.5)	%	169			614			(72.5)	%
Total Acquisitions	$	52	$	408	(87.3)	%	$	322		$	923		(65.1)	%
Cash paid for interest	$	1,971	$	2,099	(6.1)	%	$	5,615		$	5,703		(1.5)	%
Cash paid for income taxes, net of (refunds)	$	583	$	423	37.8	%	$	882		$	758		16.4	%
Dividends Declared per Common Share	$	0.2775	$	0.2775	—	%	$	0.8325		$	0.8325		—	%
End of Period Common Shares Outstanding (000,000)							7,174			7,150			0.3	%
Debt Ratio							52.2		%	53.5		%	(130)	BP
Total Employees							143,630			152,740			(6.0)	%

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.

Segment Results
Dollars in millions
Unaudited	Third Quarter				Percent		Nine-Month Period				Percent
	2024		2023		Change		2024		2023		Change
Segment Operating Revenues
Mobility	$	21,052	$	20,692	1.7	%	$	62,126	$	61,589	0.9	%
Business Wireline	4,606		5,221		(11.8)	%	14,274		15,831		(9.8)	%
Consumer Wireline	3,416		3,331		2.6	%	10,113		9,821		3.0	%
Total Segment Operating Revenues	29,074		29,244		(0.6)	%	86,513		87,241		(0.8)	%
Segment Operating Income
Mobility	7,003		6,763		3.5	%	20,190		19,647		2.8	%
Business Wireline	(43)		350		—	%	123		1,124		(89.1)	%
Consumer Wireline	196		160		22.5	%	593		422		40.5	%
Total Segment Operating Income	$	7,156	$	7,273	(1.6)	%	$	20,906	$	21,193	(1.4)	%

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited					September 30,		Percent
					2024	2023	Change
Broadband Connections
Broadband1					15,198	15,065	0.9	%
DSL					146	231	(36.8)	%
Total Broadband Connections					15,344	15,296	0.3	%
1 Excludes AT&T Internet Air for Business.
Voice Connections
Retail Consumer Switched Access Lines					3,486	4,421	(21.1)	%
Consumer VoIP Connections					2,297	2,649	(13.3)	%
Total Retail Consumer Voice Connections					5,783	7,070	(18.2)	%
	Third Quarter		Percent		Nine-Month Period		Percent
	2024	2023	Change		2024	2023	Change
Broadband Net Additions
Broadband1	13	20	(35.0)	%	120	(10)	—	%
DSL	(21)	(28)	25.0	%	(64)	(80)	20.0	%
Total Broadband Net Additions	(8)	(8)	—	%	56	(90)	—	%
1 Excludes AT&T Internet Air for Business.

5

Mobility

Mobility provides nationwide wireless service and equipment.

Mobility Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2024			2023			Change		2024			2023			Change
Operating Revenues
Service	$	16,539		$	15,908		4.0	%	$	48,810		$	47,136		3.6	%
Equipment	4,513			4,784			(5.7)	%	13,316			14,453			(7.9)	%
Total Operating Revenues	21,052			20,692			1.7	%	62,126			61,589			0.9	%
Operating Expenses
Operations and support	11,559			11,795			(2.0)	%	34,483			35,587			(3.1)	%
Depreciation and amortization	2,490			2,134			16.7	%	7,453			6,355			17.3	%
Total Operating Expenses	14,049			13,929			0.9	%	41,936			41,942			—	%
Operating Income	$	7,003		$	6,763		3.5	%	$	20,190		$	19,647		2.8	%
Operating Income Margin	33.3		%	32.7		%	60	BP	32.5		%	31.9		%	60	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2024			2023			Change
Mobility Subscribers
Postpaid									88,384			86,365			2.3	%
Postpaid phone									72,285			70,757			2.2	%
Prepaid									19,200			19,391			(1.0)	%
Reseller									8,482			7,101			19.4	%
Total Mobility Subscribers1									116,066			112,857			2.8	%
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.
	Third Quarter						Percent		Nine-Month Period						Percent
	2024			2023			Change		2024			2023			Change
Mobility Net Additions
Postpaid Phone Net Additions	403			468			(13.9)	%	1,171			1,218			(3.9)	%
Total Phone Net Additions	358			494			(27.5)	%	1,162			1,407			(17.4)	%
Postpaid	429			550			(22.0)	%	1,411			1,556			(9.3)	%
Prepaid	(49)			56			—	%	34			263			(87.1)	%
Reseller	237			401			(40.9)	%	910			941			(3.3)	%
Total Mobility Net Additions1	617			1,007			(38.7)	%	2,355			2,760			(14.7)	%
Postpaid Churn	0.93		%	0.95		%	(2)	BP	0.89		%	0.97		%	(8) BP
Postpaid Phone-Only Churn	0.78		%	0.79		%	(1)	BP	0.73		%	0.80		%	(7) BP
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.

6

Business Wireline

Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, our fixed wireless access product, 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
	2024			2023			Change		2024			2023			Change
Operating Revenues
Service	$	4,417		$	5,087		(13.2)	%	$	13,688		$	15,401		(11.1)	%
Equipment	189			134			41.0	%	586			430			36.3	%
Total Operating Revenues	4,606			5,221			(11.8)	%	14,274			15,831			(9.8)	%
Operating Expenses
Operations and support	3,250			3,526			(7.8)	%	10,004			10,699			(6.5)	%
Depreciation and amortization	1,399			1,345			4.0	%	4,147			4,008			3.5	%
Total Operating Expenses	4,649			4,871			(4.6)	%	14,151			14,707			(3.8)	%
Operating Income (Loss)	$	(43)		$	350		—	%	$	123		$	1,124		(89.1)	%
Operating Income Margin	(0.9)		%	6.7		%	(760)	BP	0.9		%	7.1		%	(620)	BP

7

Consumer Wireline

Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our fixed wireless access product that provides home internet services. Consumer Wireline also provides legacy telephony voice communication services.

Consumer Wireline Results
Dollars in millions
Unaudited	Third Quarter						Percent		Nine-Month Period						Percent
	2024			2023			Change		2024			2023			Change
Operating Revenues
Broadband	$	2,838		$	2,667		6.4	%	$	8,301		$	7,755		7.0	%
Legacy voice and data services	307			368			(16.6)	%	972			1,147			(15.3)	%
Other service and equipment	271			296			(8.4)	%	840			919			(8.6)	%
Total Operating Revenues	3,416			3,331			2.6	%	10,113			9,821			3.0	%
Operating Expenses
Operations and support	2,296			2,300			(0.2)	%	6,801			6,810			(0.1)	%
Depreciation and amortization	924			871			6.1	%	2,719			2,589			5.0	%
Total Operating Expenses	3,220			3,171			1.5	%	9,520			9,399			1.3	%
Operating Income	$	196		$	160		22.5	%	$	593		$	422		40.5	%
Operating Income Margin	5.7		%	4.8		%	90	BP	5.9		%	4.3		%	160	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2024			2023			Change
Broadband Connections
Total Broadband and DSL Connections									13,972			13,887			0.6	%
Broadband1									13,864			13,710			1.1	%
Fiber Broadband Connections									9,024			8,034			12.3	%
Voice Connections
Retail Consumer Switched Access Lines									1,386			1,737			(20.2)	%
Consumer VoIP Connections									1,716			2,035			(15.7)	%
Total Retail Consumer Voice Connections									3,102			3,772			(17.8)	%
1 Includes AT&T Internet Air.
	Third Quarter						Percent		Nine-Month Period						Percent
	2024			2023			Change		2024			2023			Change
Broadband Net Additions
Total Broadband and DSL Net Additions	10			(8)			—	%	82			(104)			—	%
Broadband Net Additions1	28			15			86.7	%	135			(43)			—	%
Fiber Broadband Net Additions	226			296			(23.6)	%	717			819			(12.5)	%
1 Includes AT&T Internet Air.

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
	2024			2023			Change		2024			2023			Change
Operating Revenues
Wireless service	$	645		$	672		(4.0)	%	$	2,034		$	1,898		7.2	%
Wireless equipment	377			320			17.8	%	1,154			944			22.2	%
Total Segment Operating Revenues	1,022			992			3.0	%	3,188			2,842			12.2	%
Operating Expenses
Operations and support	854			837			2.0	%	2,662			2,396			11.1	%
Depreciation and amortization	158			184			(14.1)	%	507			544			(6.8)	%
Total Segment Operating Expenses	1,012			1,021			(0.9)	%	3,169			2,940			7.8	%
Operating Income (Loss)	$	10		$	(29)		—	%	$	19		$	(98)		—	%
Operating Income Margin	1.0		%	(2.9)		%	390	BP	0.6		%	(3.4)		%	400	BP
Supplementary Operating Data
Subscribers and connections in thousands
Unaudited									September 30,						Percent
									2024			2023			Change
Mexico Wireless Subscribers
Postpaid									5,633			5,085			10.8	%
Prepaid									16,996			16,213			4.8	%
Reseller									282			456			(38.2)	%
Total Mexico Wireless Subscribers									22,911			21,754			5.3	%
	Third Quarter						Percent		Nine-Month Period						Percent
	2024			2023			Change		2024			2023			Change
Mexico Wireless Net Additions
Postpaid	139			55			—	%	397			160			—	%
Prepaid	187			17			—	%	333			9			—	%
Reseller	(51)			(7)			—	%	(135)			(18)			—	%
Total Mexico Wireless Net Additions	275			65			—	%	595			151			—	%

9

SUPPLEMENTAL SEGMENT RECONCILIATION

Three Months Ended
Dollars in millions
Unaudited
September 30, 2024
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	21,052	$	11,559	$	9,493	$	2,490	$	7,003
Business Wireline	4,606		3,250		1,356		1,399		(43)
Consumer Wireline	3,416		2,296		1,120		924		196
Total Communications	29,074		17,105		11,969		4,813		7,156
Latin America - Mexico	1,022		854		168		158		10
Segment Total	30,096		17,959		12,137		4,971		7,166
Corporate and Other
Corporate:
DTV-related retained costs	—		107		(107)		95		(202)
Parent administration support	—		401		(401)		2		(403)
Securitization fees	31		134		(103)		—		(103)
Value portfolio	86		26		60		6		54
Total Corporate	117		668		(551)		103		(654)
Certain significant items	—		4,383		(4,383)		13		(4,396)
Total Corporate and Other	117		5,051		(4,934)		116		(5,050)
AT&T Inc.	$	30,213	$	23,010	$	7,203	$	5,087	$	2,116
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

10

SUPPLEMENTAL SEGMENT RECONCILIATION

Nine Months Ended
Dollars in millions
Unaudited
September 30, 2024
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	62,126	$	34,483	$	27,643	$	7,453	$	20,190
Business Wireline	14,274		10,004		4,270		4,147		123
Consumer Wireline	10,113		6,801		3,312		2,719		593
Total Communications	86,513		51,288		35,225		14,319		20,906
Latin America - Mexico	3,188		2,662		526		507		19
Segment Total	89,701		53,950		35,751		14,826		20,925
Corporate and Other
Corporate:
DTV-related retained costs	—		357		(357)		317		(674)
Parent administration support	—		1,236		(1,236)		5		(1,241)
Securitization fees	86		449		(363)		—		(363)
Value portfolio	251		77		174		15		159
Total Corporate	337		2,119		(1,782)		337		(2,119)
Certain significant items	—		5,040		(5,040)		43		(5,083)
Total Corporate and Other	337		7,159		(6,822)		380		(7,202)
AT&T Inc.	$	90,038	$	61,109	$	28,929	$	15,206	$	13,723
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

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