AT&T (T) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in 5G and fiber, with 419,000 postpaid phone net adds and 239,000 fiber net adds in Q2 2024, focusing on profitable customer relationships and converged connectivity strategy.

• Mobility and consumer wireline segments drove EBITDA growth, offsetting sharp declines in business wireline.

• Continued disciplined capital allocation, investing in 5G/fiber and reducing net debt.

• Operating revenues for Q2 2024 were $29.8B, down 0.4% year-over-year, with net income at $3.5B, a 20.1% decrease from Q2 2023.

• A cybersecurity incident involving customer call data was disclosed in July 2024.

Financial highlights

• Q2 2024 revenues were $29.8B, nearly flat year-over-year, as business wireline and equipment declines offset wireless and fiber growth.

• Adjusted EBITDA was $11.3B, up 2.6% year-over-year; margin expanded to 38.0%.

• Adjusted EPS was $0.57, down from $0.63 last year; reported EPS $0.49.

• Free cash flow was $4.6B, up $0.4B year-over-year; capital investment at $4.9B, down $1B from prior year.

• Net debt reduced to $126.9B; net debt-to-adjusted EBITDA improved to 2.87x.

Outlook and guidance

• 2024 guidance reaffirmed: wireless service revenue growth ~3%, broadband revenue growth 7%+, adjusted EBITDA growth ~3%.

• Capital investment expected at $21–$22B; free cash flow $17–$18B; adjusted EPS $2.15–$2.25.

• Net debt-to-adjusted EBITDA targeted at 2.5x in H1 2025.

• Ongoing investment in fiber and 5G, with a target to pass 30M+ locations by end of 2025.

• Management expects continued declines in Business Wireline and legacy services.