AT&T Inc. (NYSE:T) reported record wireless EBITDA margins and phone churn and strong wireless and DIRECTV NOW subscriber gains in the third quarter, the company said.
AT&T´s consolidated revenues for the third quarter totaled USD 39.7 billion versus USD 40.9 billion in the year-ago quarter, primarily due to declines in legacy wireline services and consumer mobility. Excluding the impact of hurricanes and earthquakes in the third quarter, revenues would have been USD 39.8 billion.
Compared with results for the third quarter of 2016, operating expenses were USD 33.3 billion versus USD 34.5 billion; operating income was flat versus the year-ago quarter at USD 6.4 billion; and operating income margin was 16.1% versus 15.7%. When adjusting for amortization, merger- and integration-related expenses and other items, operating income was USD 8.1 billion versus USD 8.3 billion in the year-ago quarter and operating income margin was 20.3%, the same as in the year-ago quarter.
Third-quarter net income attributable to AT&T totaled USD 3.0 billion, or USD 0.49 per diluted share, compared with USD 3.3 billion, or USD 0.54 per diluted share, in the year-ago quarter. Adjusting for USD 0.25 of costs for amortization, merger- and integration-related expenses and other items including hurricane and earthquake impacts, earnings per diluted share was USD 0.74, the same as in the year-ago quarter.
Cash from operating activities was USD 11.1 billion in the third quarter and USD 29.3 billion year to date. Capital expenditures were USD 5.3 billion in the quarter and USD 16.5 billion year to date. Free cash flow — cash from operating activities minus capital expenditures — was USD 5.9 billion for the quarter and USD 12.8 billion year to date.
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