* 2.7 million fourth-quarter network addition in sum wireless subscribers, the second base highest quarterly net amplification in the company’s account; full-year wireless net adds totaled 7.3 1000000, equaling the troupe’s topper-ever annual sum, to reaching 85.1 1000000 subscribers in service
* C. H. Best-ever fourth-quarter radio contributor butter churn levels — 1.19 percent postpaid and 1.44 percent sum
* 2.6 percent growth in postpaid wireless subscriber ARPU (average monthly revenues per contributor), eighth consecutive stern with a year-over-year step-up
* Continued robust growth in revenues from radio data services such as electronic messaging, approach to applications and related services; up $805 1000000, or 26.3 percent, versus the class-earlier quarter to $3.9 one thousand million
* 248,000 network gain in AT&T U-verseSM TV subscribers to reaching 2.1 million in overhaul, up more than 1 1000000 in 2009, with continued high broadband and part attach rates
* 18.8 percent emergence in wireline IP information revenues driven by AT&T U-rhyme expansion and growth in advanced business solutions
* 17.0 percentage emergence in revenues from strategic stage business services such as Ethernet, Virtual Private Networks (VPNs), hosting and diligence services
AT&T Inc. reported fourth-stern results highlighted by solidness momentum across key emergence areas. Wireless service revenues grew 9.2 percent, driven by manufacture-leadership contributor emergence and continued rapid borrowing of information services. AT&T U-rhyme contributor gains topped 1 1000000 for the class. Wireline IP-based services and strategic business products both posted strong two-base hit-dactyl revenue emergence.
Progress in these areas and continued solidness execution of cost initiatives offset expected declines in bequest voice and print publicizing products. Fourth-stern revenues totaled $30.9 billion, net income attributable to AT&T was $3.0 billion, diluted earnings per contribution totaled $0.51 and immediate payment from operating activities totaled $9.0 one thousand million.
“We had a solidness 2009 and led the manufacture in the biggest emergence number one wood — mobile broadband,” said Randall Stephenson, AT&T chairman and foreman executive officer. “Looking ahead, client requirement for connectivity, particularly mobile broadband and IP data, continues to be strong, and AT&T is wellspring positioned at the centre of this growth. Our fundamental frequency outlook for the business is quite positive.
“Our significant investments in IP infrastructure — both mobile and fixed — provide the next-generation emergence platforms for us,” Stephenson said. “Our leading in mobile broadband will continue to exercise set us apart as we roll out even faster 3G speeds this year and begin deploying 4G capabilities in 2011. Our IP-based U-rhyme service continues to plate nicely, improving our consumer revenue visibility. And we continue to see solid emergence from mobile broadband and IP data services in the business segment.”
Fourth-Quarter Financial Results
For the quarter ended December. 31, 2009, AT&T’s consolidated revenues totaled $30.9 one thousand million, compared with $31.1 one thousand million in the year-earlier quarter and up slightly from the third stern of 2009. This marked AT&T’s third base consecutive quarter with a sequential increase in consolidated revenues.
AT&T’s operating expenses for the quartern stern of 2009 were $26.0 one thousand million versus $26.2 billion in the year-earlier point. Operating income was $4.9 billion, compared with $4.9 one thousand million in the quartern quarter of 2008, and AT&T’s operating income edge was 15.8 percent, the same as in the year-earlier stern. Internet income attributable to AT&T totaled $3.0 billion, compared with $2.4 billion in the year-earlier quarter, and earnings per diluted share totaled $0.51, compared with $0.41 in the fourth quarter of 2008.
In summation to solidness operational execution, fourth-quarter 2009 results reflect severing charges related to workforce reductions totaling $330 million, or $0.04 per share, set-back by $0.04 of benefits to earnings per share from taxation audits and judicial developments. Year-over-year comparisons reflect incremental noncash pension and retiree benefit expenses in the fourth stern of 2009 of approximately $250 1000000, or $0.03 per diluted contribution.
Fourth-quarter 2008 results included a severing mission of $617 1000000, or $0.07 per diluted share, related to work force reductions and a mission of $445 million, or $0.05 per diluted contribution, for merger-related trustingness investment losses. Both living quarters’ severing charges ar primarily reflected in the Other segment of AT&T financial statements.
Full-Year Results, Outlook
For the full class 2009, compared with 2008 results, AT&T’s consolidated revenues totaled $123.0 one thousand million versus $124.0 one thousand million; operating expenses were $101.5 billion, compared with $101.0 billion; network income attributable to AT&T was $12.5 billion versus $12.9 billion; and profit per diluted contribution totaled $2.12, compared with $2.16.
Compared with 2008 results, AT&T’s full-year immediate payment from operating activities totaled $34.4 one thousand million, up from $33.7 billion; capital expenditures totaled $17.3 billion versus $20.3 one thousand million; and free cash stream (immediate payment from operations subtraction chapiter expenditures) totaled $17.1 billion, up from $13.3 billion. AT&T’s 2009 cash from operations and free cash flow were the troupe’ best-ever yearbook totals.
As it continues to execute its emergence and cost-betterment initiatives, in 2010, AT&T expects to deliver stable consolidated revenues and stalls-to-improved consolidated operating income margins, leading to stalls-to-improved earnings per share. AT&T also expects to generate strong free people cash stream in 2010, generally in line with 2008 results, even with a substantial step-up in radio capital investment to further enhance radio broadband reporting, mental ability and execution. Total 2010 capital expenditures are expected to be in the $18 billion to $19 billion range, a floor framed by the outlook that regulatory and legislative decisions relating to the telecommunication sector will continue to be sensitive to investiture. AT&T expects to achieve a wireless OIBDA service margin in the low 40-percent stove in 2010, and its longer-terminus wireless OIBDA overhaul margin outlook continues to be in the mid-40 percent range. (OIBDA service margin is operating income before disparagement and amortization, divided by sum service revenues.)
Wireless Operational Highlights
AT&T’s quartern-stern wireless emergence was driven by the company’s premier nationwide net capabilities, rich access to applications and attractive device lineup. Highlights include:
* Strong Subscriber Gains. In the quartern stern, AT&T posted a network amplification in sum radio subscribers of 2.7 1000000, the second base highest quarterly network add total in the troupe’s account, reflecting rapid borrowing of smartphones and emerging devices such as eReaders, netbooks and navigation devices. Full-year radio network adds totaled 7.3 1000000, equaling the troupe’s topper-ever yearbook sum, to reaching 85.1 million subscribers in service. Retail postpaid network adds totaled 910,000 for the stern and 4.3 1000000 for the full class. * C. H. Best-Ever Fourth-Quarter Subscriber Churn. Average monthly contributor churn improved to topper-ever quartern-stern levels. Postpaid churn was 1.19 percentage, down feather from 1.20 percentage in the class-earlier stern; sum butter churn was 1.44 percent versus 1.64 percent in the fourth quarter of 2008. This marked AT&T’s sixth consecutive stern of class-over-class improvement in both total and postpaid radio butter churn. * Sustained Robust Growth in Wireless Data Revenues. Wireless data revenues — from electronic messaging, approach to applications and related services — increased $805 million, or 26.3 percent, from the year-earlier quarter to $3.9 one thousand million. Versus the year-earlier stern, sum text messages carried on the AT&T net increased 70 percentage to 135 one thousand million and multimedia system messages more than doubled to more than 2 billion. * Eighth Consecutive Quarter of Postpaid ARPU Growth. Driven by strong data emergence, postpaid contributor ARPU increased 2.6 percent versus the class-earlier quarter to $61.13. This marks the one-eighth consecutive quarter AT&T has posted a year-over-class increase in postpaid ARPU. Postpaid information ARPU reached $19.16, up 17.5 percentage versus the class-earlier stern. * Strong Growth in 3G and Integrated Devices. Key drivers of AT&T’s radio data emergence ar increased penetration of integrated devices (handsets with QWERTY or virtual keyboards in addition to voice functionality) and greater custom of the company’s extensive 3G network. The number of postpaid 3G integrated devices on AT&T’s network increased by more than 4 million in the quartern quarter and nearly tripled over the past tense class. At the end of the class, 46.4 percent of AT&T’s 65.1 1000000 postpaid subscribers had integrated devices, up from 27.0 percent a class earlier. AT&T’s quartern-quarter integrated-device emergence included 3.1 million iPhone activations, the second base highest quarterly sum to date, with more than a third of the activations for customers who were new to AT&T. The norm ARPU for integrated devices on AT&T’s network continues to be 1.8 times that of the troupe’s nonintegrated-device base. * Leadership in Emerging Devices. AT&T’s fourth-stern subscriber gains also reflect strong emergence in wireless connectivity for emerging devices including eReaders such as the Amazon River Kindle, the Sony Reader Daily Edition™ and the Barnes & Noble corner. Total emerging devices on AT&T’s wireless net increased by more than 1 million in the fourth quarter, its strongest quarter in this category to appointment, predominantly reflected in reseller subscriber totals. * Wireless Margin Improvement. AT&T delivered class-over-year margin enlargement and sequential margin stability in the fourth quarter — reflecting continued first gear churn, improved operating efficiencies and further growth in the troupe’s pedestal of high-quality subscribers. Fourth-quarter wireless service revenues totaled $12.6 one thousand million, up 9.2 percent from the fourth quarter of 2008, and operating expenses totaled $10.4 one thousand million, up 2.4 percent versus the class-earlier quarter. Versus the fourth quarter of 2008, radio operating income was $3.4 billion, up 27.4 percentage; radio operating income margin was 24.7 percent versus 20.9 percent; and wireless OIBDA overhaul edge was 38.8 percentage, compared with 35.8 percent.
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