uploads///Telecom ATT Q Mexico Phone Net Additions

What Drove AT&T’s Market Share in Mexico in 4Q17?

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Mar. 12 2018, Updated 10:20 a.m. ET

AT&T’s international business

AT&T’s (T) international component saw strong growth across its operations. Total revenues were up ~16.0% on a year-over-year (or YoY) basis to reach $2.2 billion in 4Q17 as both its Mexico and Latin America regions showed gains. Earnings before interest, tax, depreciation, and amortization were also up significantly driven by strength in the company’s DIRECTV Latin America operations as well as improvement in Mexico.

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AT&T’s Mexico wireless net additions in 4Q17

In Mexico, total revenues were up ~27.2% on a YoY basis to reach $0.82 billion in 4Q17. AT&T added 1.32 million wireless net customers in Mexico during 4Q17, as compared to 1.28 million in 4Q16. At the end of 4Q17, AT&T’s wireless footprint in Mexico covered 96 million POPs (point of presence) and the company anticipates it will cover nearly 100 million POPs by the end of 2018.

Additionally, in Latin America, total revenues were up ~10.3% on a YoY basis to reach $1.39 billion in 4Q17. Meanwhile, in Latin America, DIRECTV gained 139,000 video subscribers in 4Q17.

By concentrating on both international video and wireless segments, AT&T is in positive territory, as these segments have helped to offset weakness in the telecom company’s domestic wireless segment. Smaller competitors Sprint (S) and T-Mobile (TMUS) have tried extensively to attract users from other mobile companies such as AT&T and Verizon (VZ).

AT&T reported consolidated total revenue of $41.7 billion in 4Q17, a ~0.4% reduction YoY. In comparison, Verizon’s total revenue increased by ~5.0% YoY to $34.0 billion in 4Q17, whereas T-Mobile’s total revenue grew ~5.1% YoY to $10.8 billion in 4Q17. Meanwhile, Sprint’s total revenue decreased by ~3.6% YoY to $8.2 billion during the same quarter.

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