AT&T Inc. (NYSE:T) has reported strong adjusted earnings growth and margin expansion with lower expenses in the second quarter, the company said.
AT&T´s consolidated revenues for the second quarter totaled USD 39.8 billion versus USD 40.5 billion in the year-ago quarter, primarily due to declines in legacy wireline services and consumer mobility.
Compared with results for the second quarter of 2016, operating expenses were USD 32.5 billion versus USD 34.0 billion; operating income was USD 7.3 billion versus USD 6.6 billion; and operating income margin was 18.4% versus 16.2%.
When adjusting for amortization, merger- and integration-related expenses and other items, operating income was USD 8.6 billion versus USD 8.1 billion and operating income margin was 21.6%, up 150 basis points versus the year-ago quarter.
Second-quarter net income attributable to AT&T totaled USD 3.9 billion, or USD 0.63 per diluted share, compared with USD 3.4 billion, or USD 0.55 per diluted share, in the year-ago quarter. Adjusting for USD 0.16 of costs for amortization, merger- and integration-related expenses and other items, earnings per diluted share was USD 0.79 compared with an adjusted USD 0.72 in the year-ago quarter, up 9.7%.
Cash from operating activities was USD 8.9 billion in the second quarter and USD 18.2 billion year to date. Capital expenditures were USD 5.2 billion in the quarter and USD 11.2 billion year to date. Free cash flow — cash from operating activities minus capital expenditures — was USD 3.7 billion for the quarter and USD 6.9 billion year to date.
AT&T helps millions around the globe connect with entertainment, business, mobile and high speed Internet services. Its products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.