AT&T Inc. (NYSE:T) has reported solid revenue, earnings and free cash flow growth in the third quarter led by gains in Mobility and WarnerMedia, the company said.
Wireless results in the third quarter included positive postpaid phone net adds, strong prepaid phone gains and growing service revenues. (On a GAAP basis, service revenues declined 3.4%; however, on a comparable basis, service revenues grew 2.3%.)
AT&T´s consolidated revenues for the third quarter totaled USD 45.7 billion versus USD 39.7 billion in the year-ago quarter, up 15.3%, primarily due to the Time Warner acquisition partially offset by the impact of ASC 606 and the netting of approximately USD 920 million of USF revenues with operating expenses.
Without the accounting change, revenues were USD 46.6 billion, an increase of 17.5% primarily due to the Time Warner acquisition. Declines in domestic video, legacy wireline services and Vrio were offset by growth in wireless equipment and services, WarnerMedia and Xandr.
Operating expenses were USD 38.5 billion versus USD 33.9 billion in the year-ago quarter, primarily due to the Time Warner acquisition partially offset by the netting of USF and other regulatory fee revenues and the deferral of commissions under ASC 606.
Excluding those impacts, operating expenses were USD 39.9 billion, an increase of about USD 6.1 billion due to the Time Warner acquisition, higher wireless equipment costs and Entertainment Group content cost pressure, partially offset by cost efficiencies.
Versus results from the third quarter of 2017, operating income was USD 7.3 billion, up 25.2% primarily due to the Time Warner acquisition; and operating income margin was 15.9% versus 14.6%.
AT&T is a diversified, global provider of telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia´s HBO, Turner and Warner Bros. divisions are world leaders in creating premium content, operate one of the world´s largest TV and film studios, and own a world-class library of entertainment. AT&T Communications provides more than 100 million US consumers with entertainment and communications experiences across TV, mobile and broadband services.