U.S. telecom behemoth AT&T Inc. T recently restructured its operating segments, reorganizing them into four new divisions. So far, the company had been reporting financial results in three segments, namely, Wireless, Wireline and International. With its upcoming financial results for the third quarter of 2015 (to be published on Oct 22, after the closing bell), AT&T will report its performance in terms of four business segments.
The new segments will be Business Solutions, Entertainment & Internet Services, Consumer Mobility and International. Moreover, AT&T will now report wireless financial data differently, in sharp contrast to the reporting style of its closest rivals, Verizon Communications Inc. VZ , Sprint Corp. S and T-Mobile US Inc. TMUS .
The Business Solutions segment will provide both wireless and wireline services to business customers and individual subscribers who purchase wireless services through employer-sponsored plans.
The Entertainment and Internet Services segment will provide video, high-speed broadband and voice services to residential customers in the U.S. Notably, in Jul 2015, AT&T acquired satellite TV operator DIRECTV. DIRECTV's U.S. operations will be a part of this segment.
The Consumer Mobility segment will provide triple-play (voice, video and high-speed Internet) wireless service to consumer, wholesale and resale subscribers located in the U.S. AT&T's home monitoring service will be a part of this segment.
Finally, the International segment will consist of DIRECTV's Latin American operations and AT&T's business in Mexico. Notably, AT&T is currently expanding its operations in Mexico after its twin acquisitions of Grupo Iusacell and Nextel Mexico.
In a recent filing with SEC, management stated that its third-quarter 2015 financial numbers will reveal Business Solutions as the largest segment of the company, followed by Entertainment & Internet Services, Consumer Mobility and International, in the order described.
Recently, AT&T reaffirmed its forecast for full-year adjusted profit and revenue growth despite a $1.1 billion charge that it will incur on account of DIRECTV's Venezuelan assets owing to exchange rate fluctuations in the country. AT&T currently carries a Zacs Rank #3 (Hold).
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