AT&T Inc. (T) celebrated a strong 2023 year financially with the release of their results this afternoon, with its best-ever full-year Mobility operating income, according to the company.

Revenues up, but EPS below expectations

The company announced Q4 revenues of $32 billion, up 2.2 percent YoY from $31.3 billion in Q4 2022. These were above expectations that revenues for Q4 would decline compared to Q3 2023, which had reported revenues of $30.4 billion.

Revenues for the whole Q4 year were $122.4 billion, up 1.4 percent from $120.7 billion in 2022.

A significant driver of this was that full-year consumer broadband revenues were up 8.1 percent, above guidance; driven by AT&T Fiber revenue growth of 26.6 percent for 2023.

However, earnings per share missed expectations, with adjusted EPS of $2.15 to $2.25, which the company said “includes an expected $0.17 higher
depreciation expense”.

“A strong year”

The company said in a statement before markets opened on Wednesday in the United States that:

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AT&T Inc. (NYSE: T) delivered strong fourth-quarter and full-year results highlighted by profitable 5G and AT&T Fiber subscriber gains. As a result, the company posted strong operating income and cash from operations, and surpassed its full-year guidance for adjusted EBITDA, mobility service and broadband revenue growth, as well as its previously increased guidance for free cash flow. Solid fourth-quarter results and strong free cash flow close out a strong year”

Perhaps most impressively, AT&T’s operating expenses had been brought down considerably in Q4 to $26.8 billion, almost halved from the $52.4 billion of Q4 2022. In terms of 2023 as a whole, operating expenses were down from $125.3 billion in 2022 to $99 billion in 2023.

A closer look at the numbers: 

• Q4 cash from operating activities up $1 billion to $11.4 billion, plus Q4 free cash flow of $6.4 billion
• Fourth quarter revenues of $32.0 billion, up 2.2% year over year.
• Full-year free cash flow of $16.8 billion, exceeded previously increased guidance, and up $2.6 billion
  versus the prior year. Also, Full-year cash from operating activities of $38.3 billion, up $2.5 billion versus the prior year.

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