AT&T: Mobile and Broadband Solutions for 100M+ Consumers

AT&T’s history dates back to 1876 and Alexander Graham Bell’s invention of the telephone. Referred to as “Ma Bell”, the company grew exponentially over time, building the majority of the United States’ local and long-distance telephone services, controlling a monopoly in the telecoms sector for almost 100 years, and solidifying its position as a prominent stock in the market.

During this time, AT&T was responsible for pioneering many technological advancements in communications through its Bell Labs subsidiary. The company experienced multiple reorganisations, name changes, mergers, acquisitions, government deregulations, and corporate spin-offs.

For a significant portion of the 20^. century, AT&T maintained its dominant position in the evolving telecommunications sector.  In 1984, after a prolonged legal battle, the U.S. government successfully dismantled the monopoly, dividing 22 regional operating companies known as “Baby Bells”. This action marked the beginning of industry competition among the Baby Bells and new market entrants, fundamentally changing the telecoms industry.

AT&T today

AT&T Communications provides mobile and broadband solutions to 100+ million consumers across the United States. Its broadband connectivity is provided using several platforms, with higher speeds made possible by wireless network enhancements and the company’s fibre network growth. AT&T Fiber is reportedly the US’s fastest internet with reliable speeds, serving almost all Fortune 1000 with high-speed, highly secure connectivity and smart solutions. 2023 saw revenues of US$118.0 billion. 

Market focus

AT&T’s expansive 5G network, recognised as the largest in North America, offers fast, reliable, and secure wireless connectivity. Its mid-band 5G spectrum now reaches more than 210 million people. Additionally, AT&T Fiber provides the fastest internet speeds in the U.S., known for its dependable performance. The company’s fibre network currently covers over 27 million locations across 100 metro areas, with plans to surpass 30 million fibre locations by the end of 2025.

AT&T Latin America

In 2023, AT&T’s Latin America division generated $3.9 billion in revenue by offering mobile services to consumers and businesses across Mexico. As the fastest growing wireless provider in the country, AT&T is driving significant advancements in telecommunications and helping to close the digital divide. Its 4G LTE network covers more than 100 million people and businesses, providing seamless cross-border connectivity throughout North America.

Stock listing and market capitalisation

AT&T stock is traded on the New York Stock Exchange under the ticker symbol “T”. The company’s market capitalisation as of 11 October 2024 is valued at US$153.23 billion, with revenue of US$122.2 billion, and a net income of US$12.73 billion. As of 31 January 2024, AT&T employs 149,900 global employees and 1,540 part-time global employees. Of these, the number of U.S. employees amount to 124,731.

Top 6 institutional shareholders

As of 30 June 2024, AT&T’s top six institutional shareholders are led by Vanguard Group Inc., holding 629.67 million shares (8.78%) valued at $13.46 billion, followed by BlackRock Inc. with 527.05 million shares (7.35%) worth $11.26 billion. State Street Corporation holds 322.14 million shares (4.49%) valued at $6.88 billion, while Newport Trust Company owns 197.98 million shares (2.76%) worth $4.23 billion. Geode Capital Management has 157.49 million shares (2.20%) valued at $3.37 billion, and Morgan Stanley holds 88.46 million shares (1.23%) worth $1.89 billion.

AT&T second quarter results

On 24 July 2024, AT&T reported strong second-quarter results, reflecting sustained profitable growth in 5G and fiber customers, with increases in Mobility service and broadband revenues. The company reaffirmed its full-year 2024 financial guidance following consistent first-half performance. For the quarter, AT&T achieved revenues of $29.8 billion, a diluted EPS of $0.49, and an adjusted EPS of $0.57. Operating income stood at $5.8 billion, with an adjusted operating income of $6.3 billion. Net income reached $3.9 billion, while adjusted EBITDA came in at $11.3 billion. Cash from operating activities totalled $9.1 billion, though down $0.8 billion year-over-year, and capital expenditures were $4.4 billion, with capital investments of $4.9 billion. Free cash flow increased by $0.4 billion year-over-year, reaching $4.6 billion.

Key highlights

Highlights for the quarter included 419,000 postpaid phone net adds, with an industry-leading postpaid phone churn of 0.70%, and mobility service revenues of $16.3 billion, up 3.4%. Additionally, AT&T recorded 239,000 AT&T Fiber net adds, marking 18 consecutive quarters with over 200,000 net adds, and consumer broadband revenues grew 7% year-over-year to $2.7 billion, with 27.8 million consumer and business locations now passed with fiber.

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