Document


AT&T Inc. Selected Segment Results
Dollars in millions, except ARPU
Unaudited


Communications Segment	3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20			12/31/20

Operating Revenues
Mobility	$	17,363		$	17,292		$	17,701		$	18,700		$	17,402		$	17,149		$	17,894		$	20,119
Business Wireline	6,418			6,536			6,426			6,521			6,266			6,305			6,261			6,251
Consumer Wireline	3,256			3,338			3,257			3,161			3,111			3,051			3,040			3,116
Total Operating Revenues	27,037			27,166			27,384			28,382			26,779			26,505			27,195			29,486


Operating Expenses
Operations and support	15,990			15,346			15,915			17,044			15,335			14,974			16,063			19,064
Depreciation and amortization	3,925			3,943			3,993			3,998			4,043			4,043			4,068			4,062
Total Operating Expenses	19,915			19,289			19,908			21,042			19,378			19,017			20,131			23,126
Operating Income	$	7,122		$	7,877		$	7,476		$	7,340		$	7,401		$	7,488		$	7,064		$	6,360


Operating Income Margin	26.3		%	29.0		%	27.3		%	25.9		%	27.6		%	28.3		%	26.0		%	21.6		%


Mobility 1	3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20			12/31/20

Operating Revenues
Service	$	13,629		$	13,824		$	13,930		$	13,948		$	13,968		$	13,669		$	13,883		$	14,022
Equipment	3,734			3,468			3,771			4,752			3,434			3,480			4,011			6,097
Total Operating Revenues	17,363			17,292			17,701			18,700			17,402			17,149			17,894			20,119


Operating Expenses
Operations and support	10,041			9,522			9,948			11,170			9,569			9,332			10,182			13,023
Depreciation and amortization	2,013			2,003			2,011			2,027			2,045			2,012			2,021			2,008
Total Operating Expenses	12,054			11,525			11,959			13,197			11,614			11,344			12,203			15,031
Operating Income	$	5,309		$	5,767		$	5,742		$	5,503		$	5,788		$	5,805		$	5,691		$	5,088


Operating Income Margin	30.6		%	33.4		%	32.4		%	29.4		%	33.3		%	33.9		%	31.8		%	25.3		%


1 As reported for the quarter ended December 31, 2020


Business Wireline	3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20			12/31/20

Operating Revenues
Service	$	6,259		$	6,358		$	6,227		$	6,272		$	6,091		$	6,101		$	6,079		$	6,042
Equipment	159			178			199			249			175			204			182			209
Total Operating Revenues	6,418			6,536			6,426			6,521			6,266			6,305			6,261			6,251


Operating Expenses
Operations and support	3,976			3,907			3,953			4,003			3,887			3,714			3,764			3,938
Depreciation and amortization	1,203			1,225			1,252			1,245			1,286			1,301			1,313			1,316
Total Operating Expenses	5,179			5,132			5,205			5,248			5,173			5,015			5,077			5,254
Operating Income	$	1,239		$	1,404		$	1,221		$	1,273		$	1,093		$	1,290		$	1,184		$	997


Operating Income Margin	19.3		%	21.5		%	19.0		%	19.5		%	17.4		%	20.5		%	18.9		%	15.9		%


Consumer Wireline	3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20			12/31/20

Operating Revenues
High-speed internet	$	2,070		$	2,109		$	2,117		$	2,107		$	2,109		$	2,092		$	2,128		$	2,205
Legacy voice and data services	683			658			628			604			581			560			538			534
Other service and equipment	503			571			512			450			421			399			374			377
Total Operating Revenues	3,256			3,338			3,257			3,161			3,111			3,051			3,040			3,116


Operating Expenses
Operations and support	1,973			1,917			2,014			1,871			1,879			1,928			2,117			2,103
Depreciation and amortization	709			715			730			726			712			730			734			738
Total Operating Expenses	2,682			2,632			2,744			2,597			2,591			2,658			2,851			2,841
Operating Income	$	574		$	706		$	513		$	564		$	520		$	393		$	189		$	275


Operating Income Margin	17.6		%	21.2		%	15.8		%	17.8		%	16.7		%	12.9		%	6.2		%	8.8		%


WarnerMedia Segment	3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20			12/31/20

Segment Operating Revenues
Basic Networks	$	3,443		$	3,410		$	3,007		$	3,262		$	3,162		$	2,988		$	3,176		$	3,242
Direct-to-Consumer (DTC)	1,510			1,716			1,819			1,704			1,497			1,627			1,781			1,903
Theatrical, TV Content and Games Licensing	3,518			3,389			3,333			4,118			3,240			3,256			2,411			3,247
Other	461			534			548			688			536			397			538			798
Eliminations	(185)			(272)			(425)			(319)			(670)			(1,540)			(511)			(636)
Total Segment Operating Revenues	8,747			8,777			8,282			9,453			7,765			6,728			7,395			8,554


Segment Operating Expenses
Direct Costs
Basic Networks	1,840			1,954			1,153			1,598			1,451			1,090			1,817			1,490
Direct-to-Consumer (DTC)	789			999			960			1,076			911			1,361			1,551			1,629
Theatrical, TV Content and Games Licensing	2,430			2,492			2,261			2,823			2,346			2,233			1,600			2,057
General and administrative	1,080			1,014			1,031			1,092			1,222			917			914			1,136

Other	122			130			141			163			161			106			109			140
Eliminations	(172)			(213)			(287)			(304)			(486)			(1,051)			(508)			(617)
Depreciation and amortization	155			102			163			169			161			164			169			177
Total Segment Operating Expenses	6,244			6,478			5,422			6,617			5,766			4,820			5,652			6,012
Segment Operating Income	2,503			2,299			2,860			2,836			1,999			1,908			1,743			2,542
Equity in Net Income (Loss) of Affiliates	67			55			16			23			15			4			12			(13)
Segment Contribution	$	2,570		$	2,354		$	2,876		$	2,859		$	2,014		$	1,912		$	1,755		$	2,529


Segment Operating Income Margin	28.6		%	26.2		%	34.5		%	30.0		%	25.7		%	28.4		%	23.6		%	29.7		%
Total Programming and Production Costs	$	3,586		$	3,654		$	2,882		$	3,826		$	3,082		$	2,375		$	3,180		$	3,040


Basic Networks	3/31/19		6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		9/30/20		12/31/20

Operating Revenues
Subscription	$	1,965	$	1,943	$	1,927	$	1,901	$	2,049	$	1,804	$	1,840	$	1,920
Advertising	1,261		1,266		913		1,126		957		796		1,077		1,111
Content and other	217		201		167		235		156		388		259		211
Total Operating Revenues	$	3,443	$	3,410	$	3,007	$	3,262	$	3,162	$	2,988	$	3,176	$	3,242


Direct Costs
Programming costs	$	1,445	$	1,533	$	795	$	1,234	$	1,104	$	700	$	1,511	$	1,118
Marketing	160		158		117		140		131		125		128		134
Other	235		263		241		224		216		265		178		238
Total Direct Costs	$	1,840	$	1,954	$	1,153	$	1,598	$	1,451	$	1,090	$	1,817	$	1,490


Direct-to-Consumer (DTC)	3/31/19		6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		9/30/20		12/31/20

Operating Revenues
Subscription	$	1,334	$	1,516	$	1,533	$	1,431	$	1,338	$	1,441	$	1,624	$	1,687
Content and other	176		200		286		273		159		186		157		216
Total Operating Revenues	$	1,510	$	1,716	$	1,819	$	1,704	$	1,497	$	1,627	$	1,781	$	1,903


Direct Costs
Programming costs	$	482	$	606	$	622	$	648	$	585	$	806	$	966	$	899
Marketing	119		160		113		184		95		266		307		428
Other	188		233		225		244		231		289		278		302
Total Direct Costs	$	789	$	999	$	960	$	1,076	$	911	$	1,361	$	1,551	$	1,629



Total Subscribers (HBO Max + HBO)							54,662		53,841		55,576		56,894		60,613
Domestic 1							34,587		33,096		36,347		38,033		41,528
HBO Max - Wholesale							—		—		23,594		25,106		30,785
HBO Max - Retail							—		—		2,975		3,625		6,880
HBO							30,331		28,829		5,918		5,614		197
HBO Commercial							4,256		4,267		3,860		3,688		3,666
International 2							20,075		20,745		19,229		18,861		19,085

ARPU
Domestic 3							$11.95		$12.32		$11.69		$11.43		$11.46

1 Domestic HBO Max and HBO Subscribers include the following categories: (1) HBO Max – Wholesale: domestic accounts that have access to HBO Max through a wholesale distributor (including AT&T’s video, broadband and mobility businesses) including wholesale subscribers that may not have signed in (2) HBO Max – Retail: domestic accounts that have access to HBO Max and are billed directly by WarnerMedia or by a third party via in-app purchase, (3) HBO: domestic accounts that do not have access to HBO Max, and (4) HBO Commercial: domestic accounts that do not have access to HBO Max and are billed on a bulk basis (e.g., hotels, etc.). Domestic HBO Max and HBO Subscribers do not include free trials or Cinemax subscribers.
2 International HBO Subscribers include HBO premium pay TV and SVOD service subscribers and exclude free trials, and basic and Cinemax subscribers.
3 Domestic ARPU is defined as Domestic HBO Max and HBO Subscriber revenues during the period divided by average Domestic HBO Max and HBO Subscribers during the period, excluding HBO Commercial revenues and subscribers.


Theatrical, TV Content and Games Licensing	3/31/19		6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		9/30/20		12/31/20

Operating Revenues
Theatrical product	$	1,506	$	1,527	$	1,375	$	1,570	$	1,106	$	1,029	$	1,068	$	1,186
Television product	1,613		1,310		1,461		1,983		1,769		1,876		960		1,566
Games and other	399		552		497		565		365		351		383		495
Total Operating Revenues	$	3,518	$	3,389	$	3,333	$	4,118	$	3,240	$	3,256	$	2,411	$	3,247


Direct Costs
Film and TV Production Costs	$	1,746	$	1,626	$	1,618	$	2,103	$	1,824	$	1,893	$	1,176	$	1,592
Marketing	425		543		400		427		300		153		219		215
Other	259		323		243		293		222		187		205		250
Total Direct Costs	$	2,430	$	2,492	$	2,261	$	2,823	$	2,346	$	2,233	$	1,600	$	2,057


Video (included in Corp & Other)	3/31/19			6/30/19			9/30/19			12/31/19			3/31/20			6/30/20			9/30/20			12/31/20

Operating Revenues
Service	$	8,075		$	8,032		$	7,942		$	8,074		$	7,397		$	6,979		$	6,965		$	7,124
Equipment	—			—			—			1			10			42			49			44
Total Operating Revenues	$	8,075		$	8,032		$	7,942		$	8,075		$	7,407		$	7,021		$	7,014		$	7,168


Operating Expenses
Operations and support	6,557			6,606			6,787			7,325			6,020			5,809			5,887			6,458
Depreciation and amortization	630			640			602			589			591			593			557			521
Total Operating Expenses	7,187			7,246			7,389			7,914			6,611			6,402			6,444			6,979
Operating Income	$	888		$	786		$	553		$	161		$	796		$	619		$	570		$	189


Operating Income Margin	11.0		%	9.8		%	7.0		%	2.0		%	10.7		%	8.8		%	8.1		%	2.6		%