U.S. carrier AT&T Q2 revenue of $29.6 billion, down 17% year-over-year

AT&T, the U.S. telecommunications carrier, today reported its second quarter 2022 financial results. According to the report, AT&T's revenue for the second quarter was $29.6 billion (approximately RMB 200.96 billion), down 17.1 percent from $35.7 billion in the same period last year. Profit was $4.8 billion (RMB 32.448 billion), compared to $6 billion in the same period last year.

Second quarter results.

Revenue was $29.6 billion, down 17.1 percent from $35.7 billion in the prior year quarter, and above analysts' expectations of $29.53 billion.

Operating expenses were $24.7 billion, compared with $28.2 billion in the prior year quarter.

Operating profit was $5.0 billion, compared with $7.6 billion in the prior year period.

Earnings from continuing operations were $4.8 billion, compared with $6.0 billion in the prior year period.

Diluted earnings per share were $0.59; adjusted diluted earnings per share, excluding GAAP, were $0.65, above analysts' expectations of $0.609.

Cash from operations was $7.7 billion, capital expenditures were $4.9 billion, total capital investments were $6.7 billion and free cash flow was $1.4 billion.

In the second quarter, AT&T added 813,000 monthly paid cellular subscribers, primarily due to the expansion of its 5G network. This compares to 691,000 monthly paid cellular subscribers added by AT&T in the first quarter.

AT&T CEO John Stankey said, "With higher than expected subscriber growth, we are raising our 2022 revenue expectations for our Mobile Services segment to 4.5 to 5 percent year-over-year growth, compared to our previous estimate of about 3 percent."

In order to compete with Verizon Communications and T-Mobile US for 5G subscribers, AT&T will have to increase its investments. To that end, AT&T expects to generate $14 billion in free cash flow this year, down from its previous estimate of $16 billion.