AT&T Provides Update to Shareholders at Oppenheimer Conference
August 06 2019 - 02:30PM
Business Wire
John Stephens, chief financial officer of AT&T Inc.
(NYSE:T), spoke today at the 22nd Annual Oppenheimer Technology,
Internet and Communications Conference in Boston. While there, he
discussed AT&T’s recently announced second-quarter results and
the company’s plans for the remainder of 2019 and into 2020.
AT&T’s detailed second-quarter 2019 results may be found here.
Stephens discussed key details around the company’s 2019
priorities:
Wireless growth The performance of AT&T’s U.S.
wireless operations in the first half of the year were strong, and
the company expects total wireless service revenue to grow for
full-year 2019. The company expects future wireless growth to be
driven by postpaid smartphone growth; customer upgrades to
unlimited plans; growth in AT&T’s Cricket wireless unit;
reduced pressure from reseller; and leadership in 5G.
Stability in Entertainment Group Another of AT&T’s
2019 priorities is stabilizing EBITDA for its Entertainment Group.
Entertainment Group EBITDA grew in both the first and second
quarter of 2019. The company continues to expect to achieve its
full-year stability target for the Entertainment Group EBITDA.
Beyond 2019, several factors are expected to help sustain
Entertainment Group EBITDA, including broadband revenue growth; a
higher-quality customer base; benefits from better cost management;
advertising growth; the introduction of AT&T TV and reduced
pressure from legacy services.
Video trends AT&T’s premium video subscribers
declined in the second quarter due to elevated churn related to the
expiration of two-year price locks as well as expected pressure as
it focuses on EBITDA stability and attracting subscribers with
higher long-term value. In the quarter, customers on two-year price
locks declined by about 600,000, leaving about 1 million
subscribers on those pricing plans.
The company’s focus on attracting higher-value subscribers
reduced gross additions in the second quarter. The company raised
its credit standards, reduced promotions and focused on attracting
subscribers in areas in which it offers internet speeds of 50 Mbps
or higher.
For the remainder of 2019, AT&T expects elevated video churn
to continue in part due to customers rolling off two-year price
locks and as carriage negotiations with two major content providers
continue. The company expects to maintain its focus on improving
the quality of its video subscriber base, taking a disciplined
approach to promotional activity and retention offers, as it
continues to prioritize stabilizing Entertainment Group EBITDA.
New video products AT&T expects to introduce its
AT&T TV, its thin-client broadband TV service, in select
markets by the end of the third quarter of 2019, expanding to
nationwide availability in early 2020. The service will have lower
acquisition costs since it does not require a truck roll to install
a satellite dish at subscribers’ homes. The company says AT&T
TV will also offer an improved user experience with a modern user
interface, great search capabilities and in-app support. AT&T
TV will be available over any broadband network and because it
doesn’t require line of sight, it will increase the size of the
addressable video market beyond satellite.
AT&T will host WarnerMedia Day in Los Angeles on Oct. 29 to
discuss its upcoming video streaming service, HBO Max, which the
company plans to launch in spring 2020 with approximately 10,000
hours of premium content. The service will offer an extensive
content library built around HBO’s premium content; original and
exclusive programming; the best of the best from WarnerMedia’s vast
portfolio and beloved brands; and high-quality third-party
content.
*About AT&T AT&T Inc. (NYSE:T) is a diversified,
global leader in telecommunications, media and entertainment, and
technology. It executes in the market under four operating units.
WarnerMedia is a leading media and entertainment company that
creates and distributes premium and popular content to global
audiences through its consumer brands including: HBO, Warner Bros.,
TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network,
Adult Swim, Turner Classic Movies and others. AT&T
Communications provides more than 100 million U.S. consumers with
entertainment and communications experiences across TV, mobile and
broadband services. Plus, it serves nearly 3 million business
customers with high-speed, highly secure connectivity and smart
solutions. AT&T Latin America provides pay-TV services across
11 countries and territories in Latin America and the Caribbean,
and is the fastest growing wireless provider in Mexico, serving
consumers and businesses. Xandr provides marketers with innovative
and relevant advertising solutions for consumers around premium
video content and digital advertising through its AppNexus
platform.
AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T
brand and not by AT&T Inc. Additional information is available
at about.att.com. © 2019 AT&T Intellectual Property. All rights
reserved. AT&T, the Globe logo and other marks are trademarks
and service marks of AT&T Intellectual Property and/or AT&T
affiliated companies. All other marks contained herein are the
property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties, and actual results might differ
materially. A discussion of factors that may affect future results
is contained in AT&T’s filings with the Securities and Exchange
Commission. AT&T disclaims any obligation to update and revise
statements contained in this news release based on new information
or otherwise.
This news release may contain certain non-GAAP financial
measures. Reconciliations between the non-GAAP financial measures
and the GAAP financial measures are available on the company’s
website at https://investors.att.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190806005828/en/
Erin McGrath AT&T Inc. Phone: (214) 862-0651 Email:
erin.mcgrath@att.com
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