Solid Quarterly Results and Outlook - Report on AT&T

NEW YORK, September 14, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on AT&T, Inc. (NYSE: T). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=T

Highlights from our T Report include:

• Earnings Roundup - On July 23, 2015, AT&T Inc. announced its financial results for the second quarter. The Company generated operating revenues of $33.0 billion in Q2 2015 recording a growth rate of 1.4% YoY. Revenue growth of the Company was impacted by Mexican acquisitions and pressure from foreign exchange and global hubbing exit. In addition, net income attributable to AT&T amounted to $3.0 billion or $0.58 per diluted share, lower than net income $3.5 billion or $0.68 per diluted share in the year-ago quarter. However, adjusted earnings per share registered a double digit growth of over 11% YoY to $0.69.

• Wireless Segment Performance at a Glance - In Q2 2015, the wireless segment reported operating revenues of $18.3 billion as compared to $17.9 billion in Q2 2014, thereby witnessing a 2% growth on a y-o-y basis. Net income generated from the segment amounted to $4.7 billion, compared to $4.3 billion in previous year quarter. The segment's net customer addition in the second quarter amounted to 2.1 million, out of which 410,000 were postpaid, 331,000 were prepaid and 1 million were connected cars. Moreover, around 1.2 million branded smartphones were added to base. Further, in Q2 2015, adjusted EBITDA of the wireless segment was recorded at $7.3 billion, higher than $6.5 billion in same period last year.

• Wireline Segment Highlights - The Company's wireline segment generated total operating revenue of $14.2 billion in Q2 2015, lower than $14.6 billion in previous year quarter. Consumer market contributed $5.8 billion in the total segment's operating revenue, while revenue contribution from AT&T business solution and National Mass Markets stood at $8.2 billion and $107 million, respectively. In addition, net income of the segment amounted to $1.36 billion, compared to $1.42 billion in prior year quarter. Moreover, EBITDA of the segment was $3.85 billion, compared to $3.94 billion in the year-ago quarter.

• Outlook for 2015 - On August 12, 2015, AT&T released its updated outlook for the full-year 2015 following its recent acquisitions of DIRECTV and Mexican wireless properties Iusacell and Nextel Mexico. The Company expects double-digit consolidated revenue growth in 2015, due to its DIRECTV acquisition. Adjusted earnings per share are anticipated to be in $2.62 to $2.68 range. In addition, capital spending is forecasted to be in the $21 billion range, including capitalized interest from spectrum. Further, free cash flow is projected to be in the $13 billion range or better with an improving free cash flow dividend payout ratio.

To find out how this influences our rating on AT&T, Inc., read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=T

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