AT&T reported Q1 revenue of $30.0 billion versus $30.1 billion in the year-ago quarter, down 0.4%. Net income was $3.8 billion versus $4.5 billion in the year-ago quarter.
The company attributed the dip to declines in Mobility equipment revenues, driven mainly by lower sales volumes, and lower Business Wireline revenues. This was mostly offset by increased service revenues, driven by Mobility, Consumer Wireline, and Mexico. Revenue trends also include increases from favorable impacts of foreign exchange rates in Mexico.
Capital expenditures were $3.8 billion in the quarter versus $4.3 billion in the year-ago quarter. Capital investment, which includes $0.8 billion of cash payments for vendor financing, totaled $4.6 billion versus $6.4 billion in the year-ago quarter.
First-Quarter Highlights
- 349,000 postpaid phone net adds with an expected industry-leading postpaid phone churn of 0.72%
- Mobility service revenues of $16.0 billion, up 3.3% year over year
- 252,000 AT&T Fiber net adds; 17th consecutive quarter of 200,000+ net adds
- Consumer broadband revenues of $2.7 billion, up 7.7% year over year
- 27.1 million consumer and business locations passed with fiber
"Our results this quarter reflect continued strong growth in our Mobility and Consumer Wireline connectivity businesses, which represent about 80% of our total revenues," said John Stankey, AT&T CEO. "Customers are choosing AT&T and staying with us. We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in Mobility and Consumer Wireline. We're also delivering on our commitment to grow and improve the quality and cadence of free cash flow, which increased by more than $2 billion year over year. This consistent, solid performance driven by our investment-led strategy gives us confidence to re-affirm our full-year consolidated financial guidance."
