AT&T Fiber: 246,000 net adds in Q2 bring total to 5.4M

Citing higher revenues for its WarnerMedia, Mobility, Mexico, and Consumer Wireline groups, AT&T reported Q2 sales of $44.0 billion versus $41.0 billion in the year-ago quarter, up 7.6% reflecting partial recovery from the prior-year impacts of COVID-19. The gains were offset by declines in domestic video and Business Wireline, which were $6.1 billion, down 4.0% year over year from lower service revenues. Second-quarter revenues were $28.1 billion, up 6.1% year over year due to increases in Mobility and Consumer Wireline.

Second-quarter net income attributable to common stock was $1.5 billion, or $0.21 per diluted common share, versus $1.2 billion, or $0.17 per diluted common share in the year-ago quarter. Cash from operating activities was $10.9 billion, down $1.1 billion year over year, with capital expenditures of $4.0 billion and content spend of $5.3 billion

“We’re pleased with our performance and our momentum is strong,” said John Stankey, AT&T CEO. “For the fourth consecutive quarter, we saw good subscriber growth across wireless, fiber and HBO Max. Mobility delivered strong service revenue, EBITDA and postpaid phone growth. Our fiber business, which leads on customer satisfaction, grew subscribers and penetration.”

Some highlights

Communications

Mobility:

789,000 postpaid phone net adds
1,156,000 postpaid net adds
174,000 prepaid phone net adds
Postpaid phone churn of 0.69%, equaling lowest churn ever
Revenues up 10.4%; service revenues up 5.0%; equipment revenues up 31.9%
Operating income of $6.0 billion, up 3.4% year over year; EBITDA4 up 2.7%
Operating income margin of 31.7%; EBITDA service margin5 55.9%

Consumer Wireline:

246,000 AT&T Fiber net adds; penetration more than 36%
Revenues up 2.9%; broadband revenues up 8.3% with ARPU growth of 6.1%

WarnerMedia

2.8 million total domestic HBO Max and HBO subscriber6 net adds; total domestic subscribers of 47.0 million, up 10.7 million in past year; and 67.5 million7 globally, up
12.0 million in past year
Launched ad-supported HBO Max and international offerings
Domestic HBO Max and HBO subscriber ARPU8 of $11.90
Total revenues up 30.7% to $8.8 billion
Direct-to-Consumer subscription revenues up nearly 40%
Now expect 70-73 million global HBO Max/HBO subscribers by end of year