AT&T Announces 2Q19 Results
On July 24 2019, AT&T Inc. (AT&T, Company) announced 2Q19 results for the three months ended June 30, 2019. Results continue to be robust following on from its USD85bn acquisition of Time Warner in June 2018. The Company reported revenue of USD44.9bn, EBITDA of USD14.6bn and net income of 3.7bn. The Company generated cash flow from operations (CFO) of USD14.2bn, a 39.2% increase compared to 2Q18.
AT&T’s robust results were fuelled by stronger than forecasted growth in its wireless segment, which accounts for approximately half of the Company’s EBITDA. Additionally, the Company experienced strong digital subscriber growth from its HBO division. The Company is preparing to launch HBO Max, a rival to the popular Netflix video streaming service, in a bid to further diversify its revenue stream.
Since the acquisition, the combined entity has managed to pay down USD18bn in debt. Management outlined its commitment to repay a further USD12bn of its 180bn debt stack during 2H19. The Company has provided guidance it intends to reduce leverage to 2.5x by fiscal year end.