AT&T Provides Second-Quarter Update on Strong Customer Additions
Dallas, Texas, June 06, 2013
Prior to a meeting with analysts this evening, AT&T Inc. (NYSE:T) reported strong customer additions in the second quarter – specifically, stronger U-verse broadband and TV subscriber growth versus the year-earlier quarter, and said it expects postpaid wireless net adds of approximately 500,000.
In the wireless segment, the company launched several successful promotions in the quarter which are driving strong sales, higher gross adds and smartphone upgrade rates similar to the first quarter. As a result, the company expects second-quarter wireless EBITDA margins to be comparable to the first-quarter. Additionally, given strong consolidated customer additions and investments in new growth opportunities, consolidated margins are expected to be down year-over-year.
The company is not changing its full-year 2013 guidance provided in January, which included full-year revenue growth exceeding 2 percent.
AT&T also reported a strengthened cash position, with strong free cash flow and an additional $1 billion in cash proceeds from a YP Holdings LLC distribution (~$500 million) where AT&T continues to hold a minority stake, and from the sale of America Movil (AMX) shares (~$550 million). AT&T’s ownership stake in AMX continues to be in the 9 percent range.
Also during the quarter, AT&T completed its second 300 million share repurchase authorization, and expects share repurchases to continue opportunistically under a new 300 million share authorization approved earlier this year.
AT&T is scheduled to release its full second-quarter 2013 financial results after market close on July 23.
NOTE: Free cash flow is defined as cash from operations minus capital expenditures.