Page 39 - SAMENA Trends - January-February 2023

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

AT&T Reports 4Q and Full-Year Results

AT&T Inc. reported fourth-quarter results that showed sustained costs in the fourth quarter of 2022. Operating income (loss) from
momentum in customer additions across 5G and fiber and solid continuing operations was ($21.1) billion versus $4.9 billion in the
growth in wireless service and broadband revenues. “We’re com- year-ago quarter. When adjusting for the asset impairments and
mitted to connecting people to greater possibility, and our results abandonments, and other items, adjusted operating income* from
demonstrate that our customers are responding to this,” said John continuing operations was $5.7 billion versus $5.0 billion in the
Stankey, AT&T CEO. “Our consistent go-to-market strategy and the year-ago quarter. Equity in net income of affiliates of $0.4 billion
simplicity of our offerings drove continued robust, high-quality primarily from the DIRECTV investment. With adjustment for our
wireless and fiber customer additions in the fourth quarter. Over proportionate share of intangible amortization, adjusted equity in
the last 10 quarters, we’ve demonstrated sustainable momen- net income from the DIRECTV investment* was $0.7 billion. Income
tum in growing customer relationships, with 7.5 million postpaid (loss) from continuing operations was ($23.1) billion versus $5.2
phone net adds and 2.9 million AT&T Fiber net adds. “We met or billion in the year-ago quarter. Earnings per common share from
surpassed all of our profitability targets for the year all while in- continuing operations was ($3.20) versus $0.66 in the year-ago
vesting at record levels to bring the benefits of our 5G and fiber quarter. Adjusting for ($3.81), which includes asset impairments
technologies to even more people. As we enter 2023, I’m confident and abandonments, an actuarial loss on benefit plans, our
in the trajectory of our business and in our team’s ability to deliver proportionate share of intangible amortization from the DIRECTV
profitable and durable growth for our shareholders.” equity method investment and other items, earnings per diluted
Consolidated Financial Results common share* from continuing operations was $0.61 compared
Revenues from continuing operations for the fourth quarter to $0.56 in the year-ago quarter. Cash from operating activities
totaled $31.3 billion versus $31.1 billion in the year-ago quarter, from continuing operations was $10.3 billion, up $2.3 billion year
up 0.8%. This increase primarily reflects higher Mobility, Mexico over year. Capital expenditures from continuing operations were
and Consumer Wireline revenues, partly offset by lower Business $4.2 billion in the quarter versus $3.5 billion in the year-ago quarter.
Wireline revenues. Operating expenses from continuing operations Capital investment* from continuing operations, which includes
were $52.4 billion versus $26.2 billion in the year-ago quarter. $0.5 billion of cash payments for vendor financing, totaled $4.7
Operating expenses increased primarily due to non-cash goodwill billion. Free cash flow* from continuing operations was $6.1 billion
impairments and asset abandonments and restructuring charges for the quarter.
in the current quarter totaling $26.8 billion. Goodwill impairments
of $24.8 billion were associated with our Business Wireline,
Consumer Wireline and Mexico reporting units and were driven
by higher interest rates consistent with the macroeconomic
environment, with secular declines also impacting Business
Wireline growth rates. Asset abandonments of $1.4 billion were
associated with certain wireline conduits no longer required to
support our copper and fiber networks. To a lesser extent, the year-
over-year increase also reflected higher bad debt expense and
increased depreciation, partly offset by lower wireless equipment
costs from lower volumes and the lack of 3G network shutdown

AT&T Turns to Frontier for 5G Fiber Boost

AT&T moved to bolster its fiber backhaul coverage by tapping agreement enables AT&T to expand its network into areas not
Frontier Communications’ network, a move which involves the covered by its own fiber network in all 25 states where Frontier
operator deploying mobile equipment at the latter’s facilities. The Communications has a presence. A representative for AT&T told
Mobile World Live it will “strategically begin to centralize” baseband
units “where it makes sense to do so for operational efficiencies”.
Frontier Communication’s footprint is complementary to AT&T’s
existing network, which could accelerate its 5G deployment. AT&T
is the first customer to rent space in Frontier’s central offices. The
backhaul move builds on an agreement struck in 2021 involving
Frontier Communications delivering fiber connectivity to large
enterprise customers outside AT&T’s footprint. In 2022, Frontier
Communications announced it was halfway through a move to
deploy fiber to 10 million locations by end-2025. AT&T executives
have continually stressed fiber expansion is one of their top
priorities, as the company aims to cover 30 million locations by
end-2025.
39 JANUARY-FEBRUARY 2023