AT&T’s wireless service revenues
Let’s look at the two key components of AT&T’s (T) wireless revenues. The smaller part comprises the company’s wireless equipment revenues, and the larger part comprises its wireless service revenues. The falling trend in the company’s combined domestic wireless operations’ (AT&T Mobility) service revenues continued in the third quarter.
In the third quarter, AT&T reported combined domestic wireless operations service revenues of $14.0 billion, an ~3.4% YoY (year-over-year) reduction. AT&T Mobility’s service revenue decline resulted from its adoption of the new revenue recognition accounting standard.
Using its historical accounting method, AT&T Mobility’s service revenues rose ~2.3% YoY to $14.8 billion. AT&T’s management expects positive wireless service revenue growth for fiscal 2018 on a comparable basis.
Performance of other US mobile operators
Verizon (VZ) reported wireless service revenues of $16.0 billion in the third quarter, up ~0.8% YoY. T-Mobile (TMUS) and Sprint (S) haven’t reported their financial results for the quarter ended September 30.
Wall Street expects T-Mobile’s wireless service revenues to increase ~7.5% YoY to $8.2 billion. Sprint’s wireless service revenues are expected to decrease ~2.6% YoY to $5.5 billion.