It's earnings season and right now it's AT&T's turn to announce how well it did in the final quarter of the year. For the three months ending December 31st, 2017, the company brought in revenues of $41.68 billion, which was higher than expectations which were $41.49 billion. That comes out to $0.78 earnings per share. The company posted 4.1 million net adds on the wireless side, which is up from the estimated 2.22 million that was expected. Churn rate for the postpaid business was also lower than expected, at 0.89%. So AT&T beat analysts expectations soundly in the fourth quarter, and also adjusted its guidance for 2018.
Breaking it down, AT&T added 2.7 million devices in the US alone. That counts connected devices, postpaid phones and prepaid. While it saw 1.3 million added in Mexico. For the wireless business, it saw an operating income margin of 22.1%, with EBITDA margin of 32.7$ and wireless service margin of 43.8%. It also added nearly 700,000 branded smartphones to its base, with the best-ever fourth-quarter churn rate of 0.89% for postpaid phones. When it comes to the entertainment group, AT&T saw 95,000 IP broadband net adds. It also saw 161,000 total video net adds. DIRECTV NOW is also still growing with nearly 1.2 million subscribers right now, after 368,000 net adds in the fourth quarter.
For the full year, AT&T saw consolidated revenues of $160.5 billion, which is lower than the $163.8 billion a year ago. AT&T attributes this to the decline in legacy wireline services and wireless service revenues, which were mostly offset by its International business. Operating expenses for the year were $139.6 billion, compared with $139.4 billion the year before. Net income for AT&T throughout the year was $29.5 billion versus $13 billion the year before. This is mostly attributed to the new tax law that the Trump Administration signed into law in December. AT&T says that it's full-year cash from operating activities was $39.2 billion, down from $39.3 billion 2016. Full-year free cash flow was $17.6 billion compared to $16.9 billion in 2016.
AT&T did also provide an outlook for 2018, which included adjusted EPS in the $3.50 range. Free cash flow is expected to be around $21 billion, with capital expenditures approaching $25 billion. The capital expenditures should break down as $23 billion net of expected FirstNet reimbursements and inclusive of $1 billion incremental tax reform investment. It's clear that the tax reform has helped many businesses since it was signed back in December, and it's also helping out AT&T who is reinvesting it in its business. You can check out the full Q4 and Full Year earnings report by hitting the source link.