AT&T (T) Relative Performance

Relative Performance 3 Year Relative Performance -IYZ -S&P 500 160% 140% 120% 100% 80% 60% 40% 20% 0% Aug-2008 Aug-2009 Aug-2010 Aug-2011 Aug-2012 AT&T stock is up a little over 5.5% YTD, compared to Veri- zon which is up 17.3% over the same period. Telecom ETF, IYZ on the other hand is up 19% while S&P has returned a little over 25.5% since the beginning of the year. Verizon has been leading the industry in terms of wireless growth in subscribers and revenues, which grew by 8.5% in 3QFY13 compared to AT&T which was up a little over 5% over the same period. Verizon has also raised its share in its wireless business through the acquisition of its remaining 45% share from Vodafone. YTD Performance -IYZ -T - VZ -S&P 500 30% Oct-13 25% 20% 15% 10% 5% 0% -5% -10% Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Over the last 5 years S&P 500 up 33% IYZ (Telecom Exchange Traded Fund) AT&T has up returned 15% 6% over the same time AT&T is one of the two biggest components of IYZ, an Exchange Traded Fund (ETF) that tracks the telecom industry. The stock has underperformed compared to the rest of the market and the industry over the last five years. The company's operating income in 2010, 2011 and 2012, reflected non-cash charges of almost $19 billion collectively, due to actuarial losses related to pension and post-employment benefit plans. The company also re- corded a $4 billion write-down based on the management's decision to terminate the acquisition of T-Mobile US in 2011. The company's growth in the Wireless segment was also offset by declining revenues in the Wireline business. ARPU declined 1.6% in 2012, and 3.8% in 2011, reflecting growth in connected devices and tablets. These typically have a lower ARPU compared to postpaid voice plans. A 12% decline in voice services in 2012, and 11.3% in 2011, due to a reduction in demand also hurt the company's revenues. gave up share in the most profitable smartphone market due to the loss of iPhone exclusivity in 2011 as well. AT&T BIDNESS SOURCES: Company Data, SEC filings, Bloomberg Professional Services Etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein orto suggest approval for or affiliation with Bidness Etc. nee Fte berei normalized returns