Tuesday, July 30, 2013

AT&T Verizon 2Q Earnings

AT&T’s revenue increased by 1.6%, or $600 million, to $32.1 billion this past quarter from the year-ago period. The wireless business was up 5.7% on smartphone sales, and the wire-line business was up 2.4% on additional U-Verse subscribers.  
Verizon increased its consolidated revenue by 4.3% and increased EPS by 14.1% year-over-year. The main drivers of this growth were FiOS add-ons and an increased number of wireless devices.
These increases lead to a strong free cash flow position at both telecoms. AT&T generated $9.5 billion in free cash flow from operating activities, and returned more than $5.7 billion to shareholders via repurchases and buybacks. Verizon also generated $9.5 billion in free cash flow, and reduced debt outstanding by $2.6 billion