uploads/2016/01/Telecom-ATTs-Wireless-Revenue1.jpg

AT&T’s Wireless Revenue Expected to Fall Year-Over-Year

By

Updated

AT&T’s wireless revenue in 4Q15

Earlier in this series, we learned that Wall Street analysts anticipate a ~24.3% YoY (year-over-year) increase in AT&T’s (T) revenue in 4Q15. We also learned about the revenue contribution of AT&T’s segments during 3Q15. In this part of the series, we’ll look at the domestic wireless component of the telecom company. Wall Street analysts project a ~5.7% YoY decline in AT&T’s wireless revenue from domestic operations in 4Q15.

Article continues below advertisement

AT&T’s wireless revenue in 3Q15

Now let’s look at the contribution from different customer segments to this revenue stream. As you can see in the above bar chart, AT&T’s wireless revenue from domestic operations decreased marginally by ~0.04% YoY to reach ~$18.3 billion during 3Q15.

The declining trend in the Consumer Mobility segment’s revenue continued to be balanced by the growing revenue of the wireless component of AT&T’s Business Solutions’ segment during the quarter.

The wireless revenue from the Business Solutions segment rose YoY by ~4.6% to reach ~$9.5 billion in 3Q15. Meanwhile, the revenue of AT&T’s Consumer Mobility segment fell YoY by ~4.6% to reach ~$8.8 billion during the quarter.

Earlier, in 2Q15, AT&T’s Business Solutions segment’s wireless revenue rose YoY by ~9.4%. However, the same stream of the AT&T Consumer Mobility segment fell YoY by ~4.8% during that quarter.

For diversified exposure to telecom companies in the United States, you may consider investing in the iShares Russell 1000 Value ETF (IWD). The ETF held a total of ~2.5% in some of the US telecom players including AT&T, Verizon (VZ), Level 3 Communications (LVLT), CenturyLink (CTL), T-Mobile (TMUS), and Sprint (S) at the end of December 2015.

Advertisement

More From Market Realist