Revenue during the quarter went down marginally by 0.66 percent to $41,841 million from $42,119 million in the previous year period. Gross margin for the quarter contracted 372 basis points over the previous year period to 49.53 percent. Total expenses were 89.85 percent of quarterly revenues, up from 82.12 percent for the same period last year. That has resulted in a contraction of 773 basis points in operating margin to 10.15 percent.

Operating income for the quarter was $4,248 million, compared with $7,532 million in the previous year period.

However, the adjusted operating income for the quarter stood at $7,342 million compared to $7,071 million in the prior year period. At the same time, adjusted operating margin improved 76 basis points in the quarter to 17.55 percent from 16.79 percent in the last year period.

"2016 was a transformational year for AT&T, one in which we made tremendous progress toward our goal of becoming the global leader in telecom, media and technology," said Randall Stephenson, AT&T chairman and chief executive officer. "We launched DIRECTV NOW, our innovative over-the-top streaming service. Our 5G evolution plans and improved spectrum position are paving the way for the next-generation of super-fast mobile and fixed networks. And we shook-up the industry with our landscape-changing deal to acquire Time Warner, the logical next step in our strategy to bring together world-class content with best-in-class distribution which will drive innovation and more choice for consumers."

The company has spent $24,215 million cash to meet investing activities during the year as against cash outgo of $49,144 million in the last year.

The company has spent $14,462 million cash to carry out financing activities during the year as against cash inflow of $9,782 million in the last year period.

Cash and cash equivalents stood at $5,788 million as on Dec. 31, 2016, up 13.02 percent or $667 million from $5,121 million on Dec. 31, 2015.

Working capital remains negative
Working capital of AT&T was negative $12,207 million on Dec. 31, 2016 compared with negative $11,824 million on Dec. 31, 2015. Current ratio was at 0.76 as on Dec. 31, 2016, up from 0.75 on Dec. 31, 2015.

Debt comes down marginally
AT&T has recorded a decline in total debt over the last one year. It stood at $123,513 million as on Dec. 31, 2016, down 2.09 percent or $2,638 million from $126,151 million on Dec. 31, 2015. Total debt was 30.59 percent of total assets as on Dec. 31, 2016, compared with 31.33 percent on Dec. 31, 2015. Debt to equity ratio was at 1 as on Dec. 31, 2016, down from 1.02 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.48 for the quarter from 6.59 for the same period last year.