uploads///Telecom ATT Q Wireless Service Revenue

What to Expect from AT&T’s Wireless Service Revenues in 1Q18


Apr. 10 2018, Updated 8:03 a.m. ET

AT&T’s wireless service revenues

In the previous article, we discussed AT&T’s (T) expected combined domestic wireless operations’ EBITDA[1. earnings before interest, tax, depreciation, and amortization] growth in 1Q18. In this article, we’ll look at the two most significant divisions of AT&T’s wireless revenues in its combined domestic operations. Wall Street analysts expect AT&T’s wireless service revenues from its combined domestic operations to decline ~3.0% YoY (year-over-year) to reach ~$14.1 billion in 1Q18.

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In 4Q17, AT&T reported combined domestic wireless operations service revenues of $14.3 billion, a ~2.5% reduction YoY. This reduction in its wireless service revenues resulted from its lost overage revenues and the rate-plan optimization implemented by single-line users after its introduction of unlimited offerings.

Performance of other US wireless carriers

Let’s evaluate the growth in wireless service revenues of the other major US wireless service providers in 4Q17. Sprint’s (S) wireless service revenues fell ~5.5% YoY to reach $5.6 billion. Verizon’s (VZ) wireless service revenues fell ~2.9% YoY to reach $15.9 billion. T-Mobile’s (TMUS) wireless service revenues rose ~7.1% YoY to reach $7.8 billion.

In the next part, we’ll take a look at AT&T’s expected postpaid phone customer net additions in 1Q18.


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