uploads///Telecom ATT Q New Segment

A Look at AT&T’s New Reporting Structure


Sep. 26 2018, Updated 6:33 a.m. ET

New business segments

AT&T (T) has made major organizational changes since its $85.4 billion acquisition of Time Warner. Its new reportable segments are Communications, WarnerMedia, Latin America, and Advertising & Analytics. The Communications segment includes Entertainment Group, Mobility (United States), and Business Wireline.

The WarnerMedia segment consists of Turner, Warner Bros., and Home Box Office (or HBO). The Latin American operations include Mexico’s wireless business as well as Vrio, the Latin American video business. The biggest change was breaking out the advertising-related businesses to a new segment called Advertising & Analytics.

The new structure will come into effect with AT&T’s third-quarter earnings, which are expected to be released on October 24.

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AT&T reported mixed Q2 2018 results

AT&T’s adjusted EPS increased ~15.2% YoY (year-over-year) to $0.91 in the second quarter. That was ~7.1% more than what Wall Street analysts had expected. However, its total revenue missed the consensus Wall Street estimate by ~0.8%, falling ~2.1% YoY to $39 billion. 

It’s important to note that the revenue decline was a result of the carrier’s adoption of a new revenue recognition accounting standard. Using its historical accounting method, total revenue rose ~0.2% YoY to $39.9 billion.

By comparison, Verizon’s (VZ) total revenue rose ~5.4% YoY to $32.2 billion in the second quarter, while T-Mobile’s (TMUS) total revenue rose ~3.5% YoY to $10.6 billion. Sprint’s (S) total revenue fell ~0.4% YoY to $8.1 billion that same quarter.


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