AT&T Inc. booked a $20 billion profit in Q4, thanks to the US government's $1.5 trillion tax cuts passed last month. While the company revenue dropped 0.4%, AT&T Chairman and CEO Randall Stephenson’s corporate-tax overhaul, helped the American multinational conglomerate book a $19 billion profit in Q4.
“The impact of tax reform and regulatory rationalisation will be substantial and positive for the U.S. economy and AT&T,” said Stephenson. “Our FirstNet win and the opt-in by 100 percent of all states and territories will enable us to put the industry’s most robust spectrum assets to work in building a best-in-class nationwide network for public safety and first responders. On the Time Warner front, we look forward to presenting our case in court and closing the deal.”
The stock climbed more than 3% as more than 5 million shares changed hands.
According to CNBC, the stock climbed more than 3% as more than 5 million shares changed hands. The Texas-based giant admitted that it it added over 4.1 million wireless customers in Q4. The company said it had surpassed Wall Street expectations by more than 2.2 million as an impressive 2.7 million were from the US alone. Further, another 329,000 postpaid subscribers were added in the most valuable demographic, surprising analysts.
The company also attributed the record profit booking to its lowest-ever fourth-quarter subscriber cancellation rate. “The postpaid churn rate was 0.89 percent for the quarter. The total was lower, therefore better, than Wall Street's expectation of 1.15 percent, according to StreetAccount,” reports CNBC.
AT&T plans to lobby for the Time Warner deal as well. The company CEO admitted the the acquisition was the company’s top priority for 2018 and said the the proposed acquisition is a "classic vertical merger between two companies that don't even compete with one another. With 50 years of legal precedent, it's the type of business combination that the government has consistently approved with appropriate conditions.”
AT&T is aiming to present its case for the proposed merger on March 19.