AT&T Wireless, Fiber subscription wins “Real Momentum”, says CEO
Telecoms giant AT&T is doing well in the first half of 2021, as growth in home and business wireless and fiber subscriptions accelerates as it continues to simplify its strategy focused on basic telecommunications services.
AT&T has invested more than $ 60 billion in the past 12 months in 5G, spectrum, fiber and premium content, CEO John Stankey said on Thursday during the company’s second quarter 2021 earnings call. . “The momentum in our strategic areas of intervention is real. We have the right business strategy in place for long term success, ”he said.
Dallas-based AT&T broadband and wireless strength continued to anchor the operator in the first half of 2021. The operator recorded 789,000 postpaid phone network additions and 1,156,000 postpaid net additions in the second. quarter of 2021, tying its record for most net subscribers. adds its most profitable subscribers in a decade. The operator recorded 246,000 net fiber additions in the second quarter of 2021 and a penetration of 36%, up from 31% a year ago. AT&T said it is on track to record 1 million total net fiber additions for the full year of 2021.
Stankey said that by the end of the year, AT&T will have extended its fiber footprint to 3 million residential and commercial customer sites.
[Related: Microsoft, AT&T 5G Deal Gives Azure Telecom Cloud A Boost]
AT & T’s mobility segment revenue totaled $ 18.94 billion in the second quarter of 2021, an increase of 10.4% from $ 17.15 billion in the same quarter last year. Aggregate communications activity, which includes broadband Internet, video and traditional voice services, climbed 6.1% to $ 28.13 billion in the quarter, from $ 26.51 billion in the quarter. second quarter of 2020. In the area of mobility, AT&T said its service revenue grew 5%, while equipment revenue rose 31.9% in the quarter.
Wireline business revenue, on the other hand, fell 4% in the second quarter of 2021 to $ 6.05 billion, from $ 6.31 billion a year ago, what the operator attributed to the decline in service revenues due to lower demand for traditional voice and data services in the current year and higher demand for connectivity linked to the pandemic the previous year . AT&T expects to see much the same performance from this segment in the third quarter of 2021, said Pascal Desroches, new CFO of AT&T. Desroches was previously CFO of AT & T’s WarnerMedia division.
However, business wireless services climbed 7.4% to $ 2.03 billion, from $ 1.89 billion a year ago. Business wireless equipment revenue increased 33.5%, while business wired equipment revenue declined 5.9%, Desroches said.
In June, AT&T signed an agreement with Microsoft that brings the operator’s 5G workloads to the Azure for Operators platform and gives AT&T access to the Microsoft cloud, artificial intelligence and technology. tip to help launch new 5G compatible services. As part of the deal, Microsoft will acquire AT & T’s Network Cloud, which will bring actual production 5G workloads to Azure for Operators, Microsoft’s telecom cloud offering, the two companies said. Microsoft also acquired AT & T’s engineering and lifecycle management software to develop and deploy a carrier-class cloud running containerized or virtualized network services.
Desroches assured investors on Thursday that AT&T would not outsource its core network functions as part of the deal with Microsoft. Instead, the partnership has Microsoft Azure supporting AT&T network workloads for scalability and efficiency. “As a partner in this project, we will enjoy certain advantages for the key tenants,” he said. “We rely on Microsoft to develop scalable compute and storage capabilities at the edge, while maintaining control of our network stack and the types of services and products we bring to market. ”
The operator said in July that it had extended its existing relationship with tech giant Google with the introduction of two new co-developed solutions that use AT & T’s on-premises multi-access Edge compute offering and the operator’s Network Edge capabilities via LTE, 5G and wired, as well as the Edge Compute portfolio from Google Cloud. The solutions will target a variety of verticals, including retail, healthcare, manufacturing and entertainment, according to the two companies.
AT & T’s WarnerMedia unit, which includes Turner and the premium HBO TV channel AT&T acquired as part of its Time Warner purchase in 2018, is recovering from the pandemic. The segment posted revenue of $ 8.79 billion in the quarter compared to $ 6.73 billion last year, an increase of 30.7%, which reflects the partial recovery of COVID- impacts. 19 from the previous year and an increase in content, subscription and advertising revenue, according to the company.
Adjusted earnings per share in AT & T’s second quarter, which ended June 30, was 89 cents, down from 83 cents a year ago. Total revenue rose to $ 44.05 billion, an increase of 7.6% from $ 40.95 billion in the same quarter a year earlier. Net profit was $ 1.57 billion.