AT&T reported solid Q2 results with revenues of $44bn, up 7.6% YoY reflecting partial recovery from the prior-year impacts of Covid. “Higher WarnerMedia, Mobility, Mexico, and Consumer Wireline revenues more than offset declines in domestic video and Business Wireline”, they said. Operating expenses were at $40.8bn vs. $37.4bn in the year ago quarter as expenses increased due to $4.6bn in impairments at Vrio. The company reported net income of $1.5bn vs. $1.2bn a year ago and net debt decreased by $900mn with net debt-to-adjusted EBITDA at 3.15x. AT&T raised its forecast for adjusted earnings growth, and now predicts a low- to mid-single-digit gain for the year.
AT&T’s bonds were stable – its 3.4% 2025s were at 108.9, yielding 0.85%