AT&T’s new subscribers boost service revenues. How’s T stock faring?

July 21, 2022 12:33 PM PDT | By Mridul Gogoi
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  • AT&T reported a revenue of US$ 29.6 billion from continuing operations.
  • AT&T said it added new customers by expanding fiber and 5G wireless network.
  • AT&T is of the top communication services providers.

AT&T Inc. (NYSE: T) posted its second-quarter earnings report on Thursday and reported a revenue of US$ 29.6 billion from continuing operations. However, it was down by 17.1 per cent from US$ 35.7 billion in the year-ago quarter.

While AT&T raised its forecast for its mobility revenue, it reduced the full-year cash flow to divert its funds to expand the 5G network.

Notably, the mobility revenue grew 5.2 per cent year-over-year (YoY) to US$ 19.9 billion, riding on higher equipment and services growth. Meanwhile, the service revenues increased by 4.6 per cent from Q2 2021 to US$ 15 billion, mainly driven by growth in the subscriber base.

On the other hand, equipment revenues grew to US$ 4.9 billion, up by 7.2 per cent YoY. Sales of costly smartphones drove it. AT&T's adjusted EPS for the reported quarter came in at US$ 0.65, which was down from US$ 1.40 in the same period last year.

The diluted EPS of the telecommunications holding company from continuing operations was US$ 0.591.

AT&T claims to add new fiber locations

AT&T said it added new customers by expanding fiber and 5G wireless network. The company added close to two million AT&T Fiber locations in 2022, said AT&T CEO John Stankey.

The company claimed that it achieved its target of covering 70 million customers with the mid-band 5G spectrum. AT&T aims to touch the 100-million milestone by the end of this year.

The company reported its operating expenses from continuing operations at US$ 24.7 billion, down from US$ 28.2 billion in the same quarter in 2021.

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The operating income from its continuing ventures came down to US$ 5.0 billion in the second quarter from US$ 7.6 billion in the same quarter last year.

AT&T also reported a drop in its cash from operating activities from continuing operations in the second quarter. It was US$ 7.7 billion, down by US$ 2.4 billion YoY.

Bottom line

Shares of AT&T dropped around 1.3 per cent in pre-market trading on Friday after the earnings report's release.  

On July 21, the T stock had closed at US$ 18.92 after declining 7.6 per cent during the trading session.


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