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Why AT&T’s Wireless Revenue Was Mostly Flat in 3Q15

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AT&T’s wireless revenue in 3Q15

In this series, we’ll look at the performance of AT&T’s (T) overall domestic wireless component in 3Q15. Note that AT&T has divided its operations into four new divisions: Business Solutions, Consumer Mobility, Entertainment and Internet Services, and International. The wireless results, which we’ll look at in this series, include the wireless component of Business Solutions and the Consumer Mobility segment. AT&T’s wireless revenue declined slightly YoY or year-over-year by ~0.04% to reach ~$18.3 billion in 3Q15. Declining Consumer Mobility revenues continued to negatively affect the overall growth of the wireless segment.

The revenues of AT&T’s Consumer Mobility division dropped ~4.6% YoY to reach ~$8.8 billion in 3Q15. In 2Q15, the segment’s revenue decreased ~4.8% YoY.

Meanwhile, the growth of wireless revenue from the Business Solutions division also slowed sequentially. The revenue from this wireless component rose ~4.6% YoY to reach ~$9.5 billion in 3Q15. In 2Q15, wireless revenue from Business Solutions had grown by ~9.4% YoY.

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About AT&T

In terms of market capitalization, AT&T is the largest telecom player in the United States as of October 29, 2015. The second-largest player in this market is Verizon (VZ). By global market capitalization, China Mobile (CHL) is the largest global telecom company and AT&T and Verizon follow.

In the United States, AT&T’s wireline telecom operations are the largest. After the company’s acquisition of DIRECTV (DTV), AT&T is also the largest pay-TV provider in the United States. In the US wireless industry, AT&T is the second-largest player, after Verizon.

You can take on diversified exposure to AT&T by investing in the SPDR S&P 500 ETF (SPY). The ETF invested ~1.2% of its portfolio in the telecom company at the end of August 2015.

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