AT&T, Tata and Zain KSA post financial results

AT&T, Tata and Zain KSA post financial results

Financial results NEW .jpg

As reporting season kicks off for the latest quarter, AT&T, Tata Communications and Zain KSA have all posted their latest earnings.

In the US, AT&T has seen consolidated revenues reach US$39.9 billion for Q3 a decrease of 5.7% due to the separation of the US video business, other divested businesses, and lower business wireline revenues.

Across its communications business, AT&T's third quarter revenues were $28.2 billion, up 3.8% year over year due to increases in mobility and consumer wireline "more than offsetting" the decline in business wireline. Operating contribution was $7.1 billion, up 0.8% year over year, with operating income margin of 25.2%, compared to 26.0% in the year-ago quarter.

In mobility, AT&T saw revenues increase 7%, while service revenues grew 4.6% and equipment revenues were up 15%. This division saw operating income of $6 billion, an increase of 4.6% year over year. However, these same factors led to a decrease in operating expenses, which stood at $32.8 billion compared to $36.2 billion in the year-ago quarter.

In the consumer wireline division, revenues were up 3.4%; broadband revenues up 7.6% and ARPU growth stood at 5.2%

CEO John Stankey said: “We continue to execute well in growing customer relationships, and we’re on track to meet our guidance for the year.

“We had our best postpaid phone net add quarter in more than 10 years, our fiber broadband net adds increased sequentially, and HBO Max global subscribers neared 70 million. We also have clear line of sight on reaching the halfway mark by the end of the year of our $6 billion cost-savings goal.”

Tata Communications

Posting results for the second quarter of its financial year, Tata Communications saw consolidated revenue of $563 million, representing growth of 1.7% quarter over quarter, but a  decline of 5.2% year over year.  Consolidated Profit After Tax was $57 million, an increase of 10.6% YoY and 43.7% QoQ.

The data services division – which includes core connectivity and digital platforms and services –  saw revenue growth of 1.1% for the quarter as all segments grew sequentially after three quarters of decline.

Commenting on the second quarter performance, A.S Lakshminarayanan, MD and CEO, Tata Communications, said: “Delivering a sequential growth on a quarter-on-quarter basis after

three quarters of decline is a positive indicator which we will continue to build on. The second quarter of FY22 was marked by recovery with favourable underlying trends as economic activities normalise. As the global industries recover, we continue to maintain sharp focus on the needs of our customers, in line with the rapidly changing trends and evolving digital needs.”

Commenting on the results, Kabir Ahmed Shakir, CFO, Tata Communications, said: “Our performance in the second quarter demonstrates a continued improvement in revenue supported by improvement in profitability and build-up of free cash flow. We continue to strengthen our balance sheet and invest for future growth as we evolve as a trusted partner for our customers, enabling their digital transformation journey.”

Zain KSA

Meanwhile in Saudi Arabia, Zain KSA had a less year to date as profits for the first nine months dropped 36%.

The company said the decline was due to a 1% drop in revenue, as well as rising revenue costs by 19%, leaving $38.1 million in net profit for the period. However, lowering operating expenses and the results of the capital restructuring last year helped compensate for the fall, it added.

However, comparing Q3 2021 with Q2, Zain KSA recorded an increase of net profit by 45% in Q3 2021 compared to Q2 2021 due to the increase in revenue by 5% amounting SR 88 million driven by the growth in B2B and 5G revenues, despite the decrease in gross Profit by SR 15 million.

Zain said: "This is mainly due to the decrease in Opex by SR 55 million while depreciation and amortization expenses and finance expenses increased respectively by SR 12 million and SR 8 million."


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