Breaking Down AT&T's Second-Quarter Earnings

AT&T reported strong financial results, surpassing analyst expectations in revenue and EPS. The company completed its acquisition of Time Warner, marking a significant strategic move. AT&T is focusing on building its digital ad business through the acquisition of Appnexus. Despite a positive forecast, the market remains cautious due to the integration of Time Warner and the need for pro forma financials. The core business of AT&T, including wireless and TV services, remains stable with a less aggressive promotional environment compared to previous years.

What was the revenue of AT&T in the second quarter, and how did it compare to analysts' expectations?

• $38 billion, below expectations

• $40 billion, above expectations

• $39 billion, above expectations

• $38.76 billion, met expectations

What significant acquisition did AT&T complete in the second quarter?

• DIRECTV

• Time Warner

• Appnexus

• Verizon

How does the acquisition of Appnexus fit into AT&T's strategy?

• It enhances TV subscription services.

• It provides a foundation for a digital ad exchange.

• It reduces operational costs.

• It helps in expanding wireless services.

Why are AT&T's shares under pressure despite strategic acquisitions?

• Due to increased competition

• Due to high operational costs

• Because of unclear financial forecasts

• Because of declining subscriber base

How does the current promotional environment in wireless services compare to last year?

• Increased device costs

• Less aggressive pricing

• More aggressive pricing

• No change in pricing