AT&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 Q4 Results and Strong Free Cash Flow
- Q4 cash from operating activities of $11.4 billion, up $1.0 billion or 10.0% year over year; full-year cash from operating activities of $38.3 billion, up $2.5 billion versus the prior year.
- Q4 free cash flow of $6.4 billion; full-year free cash flow of $16.8 billion, exceeded previously increased guidance, and up $2.6 billion versus the prior year.
- Q4 revenues of $32 billion, up 2.2% YoY.
- Q4 operating income of $5.3 billion; full-year operating income of $23.5 billion.
"We accomplished exactly what we said we would in 2023, delivering sustainable growth and consistent business performance, resulting in full-year free cash flow of $16.8 billion, ahead of our raised guidance. As we advance our lead in converged connectivity, we will continue to scale our best-in-class 5G and fiber networks to meet customers' growing demand for seamless, ubiquitous broadband, and drive durable growth for shareholders," said John Stankey, AT&T CEO.
Profitable 5G and Fiber Subscriber Growth
- Full-year Mobility service revenues up 4.4%, above guidance; company's best-ever full-year Mobility operating income.
- Full-year consumer broadband revenues up 8.1%, above guidance; driven by full-year AT&T Fiber revenue growth of 26.6%.
- 526,000 postpaid phone net adds in the fourth quarter; more than 1.7 million for the full-year 2023 with historically low churn levels and continued strong ARPU growth.
- 273,000 AT&T Fiber net adds in the fourth quarter; 1.1 million net adds for full-year 2023, 16 straight quarters with more than 200,000 net adds; sixth straight year with 1 million or more AT&T Fiber net adds.
Leading Investor in America's Broadband Infrastructure
- Continued to enhance the largest wireless network in North America and expand the most reliable 5G network; mid-band 5G spectrum now covers 210 million+ people, achieving end-of-year target.