AT&T Inc. (NYSE:T): Getting Bigger and Better

Boston, MA, 04/03/2014  (usastockreports) – The U.S. telecommunication industry is one of the largest industries of the country. The industry is particularly dominated by four major players namely; Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T), T-Mobile US Inc (NYSE:TMUS) and Sprint Corporation (NYSE:S). Verizon being largest player of the U.S. telecommunications industry AT&T is second largest player. AT&T is the U.S. telecommunications giant with largest international network amongst other domestic carriers, and operates country’s largest Wi-Fi network.

AT&T’s Strong Financials

For year 2013 company reported an increase of 1.9%, revenue for 2013 reached $128.8 billion, while operating expenses for same period decreased by 14.1% to reach $98.3 billion as compared to $114.4 billion in 2012. Net income for AT&T in 2013 increased to $18.2 billion as compared to $7.3 billion in 2012. Company’s operating cash flow decreased from $39.2 billion in 2012 to $34.8 billion in 2013; company attributed this decrease to higher tax payments and increased investments to upgrade network hardware.

After last share buyback plan approved by board of AT&T Inc. (NYSE:T) in March 2013, company has recently unveiled another repurchase plan to buy-back 300 million outstanding shares. This buy-back plan will cost AT&T about $10.5 billion. This buy-back plan for time being also puts an end to the speculations of possible Vodafone Group Plc (ADR) (NASDAQ:VOD) takeover by AT&T.

Higher dividends are a joy for investors, according to company’s fillings AT&T returned around $23 billion to investors in year 2013 for dividends and share buy-back plan. AT&T has increased dividend pay-out year after year, company declared a dividend of $0.46 for current quarter with record date being April 10, 2014.

Also recently company got regulatory permission from the Federal Agencies to acquire Leap Wireless International, Inc. (NASDAQ:LEAP) for $1.2 billion. AT&T also tried to acquire T-Mobile in 2011 but was not able to get regulatory clearance, since then AT&T has been looking for new spectrum. The deal will give AT&T Inc. (NYSE:T) access to 4.6 million Leap customers and airwaves in 35 states. Leap reported a loss $603.5 million in 2013 and the $1.2 billion deal included net debt of $2.9 billion.

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