AT&T 3Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Wireless packages have shifted significantly

“The transition in wireless is just as dramatic. There has been a steady shift of our subscribers to usage based plans; more than 80% of our smartphone base is now on usage-based plans. At the same time, mobile share value has helped move customers off the traditional subsidy model.’

Connected car is ready to take off

“The connected car is ready to take off. In the third quarter alone we added more than 500,000 connected cars as the 2015 model start to roll off the assembly lines’

Added 2m subs

“In wireless, we saw good in fact great trends in a challenging environment including more than 2 million net adds that included adding twice as many postpaid subscribers as we did in the year ago third quarter”

Subs came from postpaid and connected devices

“Overall we added more than 2 million total subscribers led by postpaid and connected devices. We added nearly 800,000 new postpaid subscribers that’s twice as many as the year ago quarter, about 450,000 of those were tablets and computing devices with the remaining net adds, phone and some digital life.”

“1.3 million connected devices were added in the quarter including more than half a million cars.”

Larger data plans and insurance drive up ARPU

“Also in the quarter, we continue to see customer’s buy up larger data plans and more interested in device insurance. This is helping drive revenue.”

U-verse triple play cost $179

“ARPU for U-verse triple play customers continues to be more than $179 that helps drive revenue growth while reducing churn. In fact triple-play bundled customers have significantly lower churn than standalone customers.’

ARPU being driven by more data

“on the ARPU story, I think the biggest issue with the improvement is really the people buying the bigger buckets and buying – upping plans, as we’ve mentioned. We had over 50% of the customer base at the 10-gig or bigger plans.’

Partners aren’t as good at selling your product as you are

“in the launch cycle sometimes inventory was constrained, so people would go into different locations where our experience level in Next hasn’t been as high, particularly in some of the new channels like some of the big-box stores or some of the manufacturer stores. ”