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2022-04-21 21:02

AT&T Inc. stock closed 4.0% up on Thursday after the company reported its first-quarter 2022 financial outcomes.
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AT&T is a Delaware-registered American multinational conglomerate holding corporation with its headquarters in Downtown Dallas, Texas. It is the leading telecommunication corporation in the world and the biggest source of mobile phone services in the United States.

Financial Updates
In first quarter 2022 the consolidated revenues were $38.1 billion, falling 13.3% from the previous quarter's $43.9 billion. The drop is due to divested companies, primarily U.S. Video in the third quarter of 2021 and Vrio in the fourth quarter of 2021, as well as decreased Business Wireline revenues. Operating expenses were $32.5 billion, down from $36.3 billion a year ago. The separation of US Video operations, as well as the effects of Vrio and other divested businesses, reduced expenses. Due to the divestitures, operating income was $5.6 billion compared to $7.7 billion the year before.

Operating cash flow was $5.7 billion which is a decline from $4.2 billion year over year, with $5.1 billion in content spending. While for the same quarter , the capital expenditures were totaled $4.7 billion. A total of $6.3 billion was invested in capital, including $1.6 billion in cash payments for vendor financing. For Q1 2022, free cash flow was $0.7 billion, relative to $4.2 billion a year ago, which included $1.3 billion in DIRECTV dividends classed as investing operations. The total debt-to-adjusted EBITDA ratio was 3.42x at the end of the first quarter, an increase of $12.8 billion sequentially.

Other prominent figures
For both quarters, AT&T cash from operational activities was $7.7 billion16, dropped from $1.7 billion year over year when WarnerMedia, Vrio, and Xandr were excluded. AT&T's free cash flow for the quarter was $2.9 billion16, down from $3.8 billion a year ago.

The $0.5 billion equity in affiliate net income (loss) comprises $0.5 billion from the DIRECTV investment. Adjusted equity in net income from the DIRECTV investment was $0.9 billion after accounting for the proportionate share of intangible amortization.

Commenting on the quarterly results, John Stankey, AT&T CEO said:

"Our momentum in growing customer relationships is reaching historical levels. We had our best first quarter for postpaid phone net adds in more than a decade and our fiber broadband net adds remain consistently strong. Our results, including free cash flow, are in line with our expectations toward delivering on the full-year guidance provided at our recent Analyst Day."

The $144 billion company that trades at a PE multiple of 7.31 has recovered more than 15% in the stock market since mid-March.