Item
8.01 Other Events.
Throughout
this document, AT&T Inc. is referred to as “we” or “AT&T.” We are a
holding company whose subsidiaries and affiliates operate in the communications
services industry. Our subsidiaries and affiliates provide wireless and wireline
telecommunications services and equipment, and directory advertising both
domestically and worldwide.
We
announced on January 28, 2010 that fourth-quarter 2009 reported earnings were
$0.51 per diluted share compared with $0.41 per share for the fourth quarter of
2008. Fourth-quarter 2009 reported net income was $3.0 billion compared with
$2.4 billion for the fourth quarter of 2008. Reported earnings for the full year
2009 were $2.12 per diluted share, down from $2.16 per share for the full year
2008. Reported net income for the full year 2009 was $12.5 billion, down from
$12.9 billion for the full year 2008.
On a
reported basis, our fourth-quarter 2009 revenues were $30.9 billion compared
with $31.1 billion in fourth-quarter 2008 and full-year 2009 revenues were
$123.0 billion, compared with $124.0 billion for the previous full
year. Fourth quarter and full year 2009 revenues reflected strong
wireless subscriber gains and growth in IP and wireless data services which were
more than offset by declines in wireline voice and print
advertising. Fourth-quarter 2009 operating expenses were $26.0
billion compared with $26.2 billion in the year-ago quarter. Fourth-quarter 2009
reported operating income margin was 15.8 percent, the same as the year-ago
quarter, reflecting continued progress on cost-control initiatives offsetting a
revenue decline.
AT&T
Mobility’s reported service revenues for the fourth-quarter 2009 were $12.6
billion up 9.2 percent versus the year-ago quarter. The increase in revenues
reflected an increase in net customers and continued strong growth in data
revenues. AT&T Mobility recorded a net gain of 2.7 million
wireless customers in the fourth quarter of 2009, bringing AT&T Mobility's
customer base at year-end 2009 to 85.1 million compared to 77.0
million at year-end 2008. The subscriber increase reflects continued
demand for advanced handsets as well as rapid growth in the fourth quarter of
emerging devices such as eReaders, netbooks and navigation
services. Total connected devices on AT&T’s wireless network
increased by more than 1 million in the fourth quarter, predominantly reflected
in reseller subscriber totals. Retail postpaid subscriber net adds
totaled 910,000 for the fourth quarter compared with 1.3 million in the year-ago
quarter and 1.4 million in the third quarter of 2009. Fourth quarter
iPhone 3G activations were 3.1 million and third-quarter activations were 3.2
million. For the quarter, average revenue per postpaid subscriber
increased due to strong growth in data services and increased purchases and use
of advanced handsets. Average revenue per total subscriber declined
slightly, reflecting the rapid growth of emerging devices. Fourth-quarter 2009
reported operating expenses totaled $10.4 billion compared with $10.2 billion
for the fourth quarter of 2008. AT&T Mobility’s operating income
margin was 24.7 percent compared to 20.9 percent in the year-ago quarter,
reflecting continued low churn, improved operating efficiencies and growth in
the number of high-value subscribers.
Revenues
from our wireline business customers were $10.4 billion, a decrease of 5.5
percent from $11.0 billion in the year-ago quarter, reflecting increases in
Internet-Protocol-based data services offset by a decline in usage-based, older
circuit-based services, primarily voice. Revenues from our wireline consumer
customers were $5.3 billion, down 3.7 percent from $5.5 billion in the
fourth-quarter 2008, as a decline in voice revenues more than offset a continued
increase in broadband and video revenues.
Revenue
connections from our consumer customers (retail voice, high speed Internet and
video) totaled 45.3 million at year-end 2009 versus 47.0 million at year-end
2008 and 45.7 million at the end of the third quarter of 2009. Total
wireline consumer broadband and TV connections over the past year increased by
1.8 million. At year-end 2009, our total switched access lines were
49.4 million compared with 55.6 million at year-end 2008. The decline
reflects continuing economic pressures on our customers as well as increasing
competition from wireless, Voice over Internet Protocol and cable
providers. The number of U-verse subscribers totaled 2.1
million at year-end 2009, with a net gain of 248,000 subscribers in the fourth
quarter of 2009. U-verse deployment reached 22.8 million living units
as of year-end 2009 and we expect to reach approximately 30 million living units
across our 22-state local service area by the end of 2011.
We expect
that our total capital expenditures in 2010 will be in the $18 billion to $19
billion range, a level framed by the expectation that regulatory and legislative
decisions relating to the telecom sector will continue to be sensitive to
investment. We expect a significant increase in spending of
approximately $2.0 billion on wireless and wireline backhaul to support our
wireless network. We expect consolidated revenue growth to be stable
for 2010, led by continued gains in wireless and IP data services, and stable to
improved consolidated operating income margins.
CAUTIONARY
LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Information
set forth in this filing contains financial estimates and other forward-looking
statements that are subject to risks and uncertainties. A discussion of factors
that may affect future results is contained in AT&T’s filings with the
Securities and Exchange Commission. AT&T disclaims any obligation to update
or revise statements contained in this filing based on new information or
otherwise.
Item
9.01 Financial Statements and Exhibits.
The
following exhibits are filed as part of this report:
(d) Exhibits
99.1 AT&T
Inc. selected financial statements and operating data.
Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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AT&T
INC.
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Date:
January 28, 2010
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By: /s/ John
J. Stephens
John
J. Stephens
Senior
Vice President and Controller
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