In its Q1 Earnings, AT&T reported a 24.4% increase in total revenues to $40.5 billion. This boost in revenue is attributed to the DirecTV deal and its expansion into Mexico.
In Q1, AT&T had added nearly 1.6 million total net connections, compared to 1.2 million connections in the previous year. This growth in total net connections is because of increase in connected devices in the country.
“It was a good start to the year,” said AT&T Chairman and CEO Randall Stephenson. “We had solid financial results and executed well on our strategy to be the premier integrated communications provider for businesses and consumers. We are seeing good momentum with our initial integrated wireless, video and broadband offers. And we will expand the integrated choices for customers in the fourth quarter when we launch our new video streaming services.”
The postpaid reported a drop from 441,000 net additions last year to just 129,000 net additions this year. The company’s reseller business too reported a decline with an increase in net losses from 266,000 net losses last year to 400,000 net losses this year.
AT&T recently acquired operations in Mexico posted 566,000 branded net additions for the quarter while its reseller operations lost 37,000 connections. Thus, in North America, AT&T reported a total of 2.3 million net connection additions for the quarter.
In terms of its wireless network, AT&T ended the quarter with more than 130 million total connections. The company’s customer base grew from 1.02% last year to 1.1% this year on a year-on-year basis. The total wireless revenues dropped slightly year-over-year to just under $18 billion.
On the other hand, the operating expense of wireless expense has trimmed down, boosting segment earnings from $6.7 billion last year to $7.3 billion this year. It also raised the EBITDA margins from 36.9% to 40.8% over the same time period.
AT&T said it has spent $4.5 billion on capital expenditures during Q1, a nearly 16% increase over last year. It ended Q1 with 12% more employees at nearly 281,000 in the total head count.
The total expenses were up a slightly more modest 23.6% resulting in a 16.5% increase in total net income to $3.8 billion for the quarter. The diluted earnings per share dipped 2 cents to 61 cents for the quarter.
Meanwhile, another operator in the US, T-Mobile reported a 2.2 million net connection additions for Q1. This included more than 1 million postpaid net connections that included 877,000 new phone customers. T-Mobile US’ prepaid services registered 807,000 net connection additions in Q1.