AT&T’s Wireless Revenue Fell in 1Q16
How Did AT&T's Wireless Component Perform in 1Q16?
AT&T’s wireless revenue in 1Q16
In this series, we’ll look at the performance of AT&T’s (T) domestic wireless operations in 1Q16. The carrier reported its results for the quarter on April 26, 2016. The telecom company’s wireless revenue from these operations fell YoY (year-over-year) by ~1.3% to reach ~$18 billion in 1Q16. Earlier in 4Q15, the component’s revenue had decreased YoY by ~4.9%. YoY, the carrier’s service revenue was mostly flat in 1Q16. Meanwhile, equipment revenue continued to decline during 1Q16.
AT&T’s wireless equipment revenue in 1Q16
AT&T’s wireless equipment revenue decreased by ~6.5% YoY to reach ~$3.2 billion in 1Q16. In 4Q15, this stream had declined by ~14.9% YoY.
As per the company, the upgrades were lower YoY, negatively affecting this equipment revenue stream during the quarter. In the postpaid component, the upgrade rate declined from 6.6% in 1Q15 to 5% in 1Q16, as per the company.
AT&T’s wireless service revenue in 1Q16
In terms of profitability, service revenue is a key revenue stream for mobile players like Verizon (VZ), T-Mobile (TMUS), and Sprint (S). During 1Q16, the YoY decline in the unit wireless service revenue negatively impacted the revenue stream of the carrier.
With a positive impact from an increase in wireless customers and connections, AT&T’s wireless service revenue declined marginally by ~0.1% YoY to reach ~$14.8 billion in 1Q16. Earlier in 4Q15, this stream had decreased by ~1.7% YoY.
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