#at&t $T (+3.24%)
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Hi folks,
after my last short presentation on British American Tobacco was so well received, the next short presentation follows today: AT&T's figures for Q4, which were published yesterday on 25.02.25. I look forward to your feedback🙂 Here we go!
📌 Who is AT&T anyway?
AT&T is one of the largest telecommunications companies in the world and is a relatively established player, especially in the USA. Founded in 1885, the company has established itself over the decades as one of the leading providers of mobile communications, broadband internet and business solutions.
Following its failed expansion into the media business (including the acquisition of Time Warner, which was later reversed), AT&T is now focusing fully on its core areas again:
✔ Mobile communications (5G expansion & growth in the postpaid segment)
Fiber Internet (expansion of the broadband network in the USA)
✔ Enterprise solutions & network infrastructure
The expansion of 5G and fiber optics in particular is seen as a growth opportunity for AT&T in order to hold its own against competitors such as Verizon and T-Mobile in the highly competitive US market in the long term. But do the latest figures indicate that this strategy is really working? I'll take a look at the Q4 results.
📊 Selected financial highlights
✔ Revenue: USD 32.3 billion (+0.9% YoY)
✔ Adjusted earnings per share (EPS): USD 0.54 (stable vs. Q4 2023)
✔ Free cash flow: USD 4.8 bn (solid figures, no negative surprises)
The increase in revenue shows that AT&T is holding up well despite a highly competitive market. Particularly pleasing: free cash flow remains strong - possibly a good sign for the company's dividend policy, which in my opinion has kept me on board, especially in the weaker times in terms of share price.
📡 Mobile communications - How is the growth? Will it continue?
✅ Postpaid customer growth: +482,000 (forecast was 443,000)
✅ Mobile service revenue: USD 16.6 billion (+3.3% YoY)
✅ ARPU (average revenue per customer): Stable growth
Conclusion: Customers remain loyal to AT&T and the company can continue to benefit from 5G demand. The figures here exceed analysts' estimates!
🌐 Broadband & fiber - The future of AT&T?
🚀 Fiber customer growth: +307,000 (a strong sign of further growth)
📈 Broadband revenue (residential customers): USD 2.9 billion (+7.8% YoY)
AT&T's fiber optic offensive is paying off. While traditional TV and telephone products continue to lose relevance, AT&T is creating a future-proof source of income here.
🔮 Looking ahead - What can we expect in 2025?
📌 Service revenue: growth in the low single-digit percentage range expected
EBITDA: +3% or more
📌 Free cash flow: expected to remain stable or increase slightly
Focus remains on 5G and fiber optics, combined with cost efficiency measures Management expects continued profitable growth - no revolution, but solid progress.
📢 Conclusion - AT&T a buy?
AT&T delivers a strong quarter. Especially the cash flow and customer growth in mobile & broadband are positive. The stock remains interesting for me, but the challenges posed by the expansion of 5G and fiber optics remain a relevant task with a black box character in my view.
❌🙅 What I don't like about AT&T
Basically, this development seems positive to me for the time being, but mmn there are definitely reasons for the hole AT&T is coming out of. One of the main points is the debt. Yes, I know - isn't that a standard problem? Yes and no. With regard to AT&T, there is the problem that the 5G expansion requires a lot of investment volume, roughly speaking, which must be spent on fiber optic expansion. If there are already liabilities to a greater extent, these expansions may be limited in their speed for the purpose of refinancing and the Internet debt brake. Moreover, AT&T is not alone - Verizon and Telekom US are also well-known players in the market and are threatening to breathe down the neck of AT&T, a relatively well-known player. These points are part of the problem with AT&T's current situation and, in my opinion, put these results into perspective to some extent.
📊 How do you see AT&T? Is the stock interesting for you or rather a boring investment? Leave your opinion in the comments!
👍 - AT&T interesting
😁 - No thanks you
Your Bass-T
Sources
(1)https://seekingalpha.com/article/4761575-at-and-t-time-to-take-money-off-the-table
(4)https://www.boerse-express.com/news/articles/att-aktie-positive-vibes-am-markt-724335