AT&T Senior Executive Vice President and CFO John Stephens Updates Shareholders
January 05 2021 - 7:31PM
Business Wire
John Stephens, senior executive vice president and chief
financial officer of AT&T Inc.* (NYSE:T), spoke today at the
Citi Global TMT West Virtual Conference where he provided an update
to shareholders. He addressed the following areas:
Customer-centric approach. Stephens said that AT&T’s
significant investment in network performance, combined with
attractive wireless device pricing for both new and existing
customers, should continue to drive migrations to unlimited plans
and momentum in the company’s wireless business.
Additionally, with the introduction of a hybrid distribution
model for the Warner Bros. 2021 slate of movies, combined with new
distribution deals with Xfinity and Roku, the company anticipates
activations of HBO Max will continue to increase. In fact, Stephens
said that the release of Wonder Woman 1984 on HBO Max contributed
to high subscriber engagement over the holiday season and that
AT&T will provide updated details on HBO Max subscribers when
it announces fourth-quarter earnings.
Continued financial flexibility in 2021. AT&T expects
to have the financial flexibility in 2021 to continue to invest in
growth areas, sustain the dividend at current levels and focus on
debt reduction. Stephens reiterated that in 2021, the company
expects to generate free cash flow in the $26 billion range1
(exclusive of proceeds from potential asset divestitures), with
gross capital investment in the $21 billion range.2 This builds
upon management’s guidance of at least $26 billion of free cash
flow in 2020.
Stephens also said that AT&T continues to take a thoughtful
and thorough approach to monetizing non-core strategic assets and
investing capital effectively. The company has refinanced more than
$60 billion of debt at historically low rates and reduced its
amount of debt coming due through 2025 by about $30 billion.
AT&T will provide its 2021 financial outlook and capital
allocation guidance when it reports fourth-quarter and full-year
2020 results on Wednesday, January 27, 2021.
*About AT&T AT&T Inc. (NYSE:T) is a diversified,
global leader in telecommunications, media and entertainment, and
technology. AT&T Communications provides more than 100 million
U.S. consumers with entertainment and communications experiences
across TV, mobile and broadband. Plus, it serves high-speed, highly
secure connectivity and smart solutions to nearly 3 million
business customers. 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, HBO Max, Warner Bros., TNT, TBS, truTV, CNN, DC
Entertainment, New Line, Cartoon Network, Adult Swim and Turner
Classic Movies. Xandr, now part of WarnerMedia, provides marketers
with innovative and relevant advertising solutions for consumers
around premium video content and digital advertising through its
platform. AT&T Latin America provides pay-TV services across 10
countries and territories in Latin America and the Caribbean and
wireless services to consumers and businesses in Mexico.
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. © 2021 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.
_________________________________ 1 Free cash flow dividend
payout ratio is total dividends paid divided by free cash flow.
Free cash flow is cash from operating activities minus capital
expenditures. Due to high variability and difficulty in predicting
items that impact cash from operating activities and capital
expenditures, the company is not able to provide a reconciliation
between projected free cash flow and the most comparable GAAP
metric without unreasonable effort. 2 Gross capital investment
includes capital expenditures and cash payments for vendor
financing and excludes expected FirstNet reimbursements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210105006012/en/
Fletcher Cook AT&T Phone: 214-912-8541 Email:
fletcher.cook@att.com
Daphne Avila AT&T Phone: (972) 266-3866 Email:
daphne.avila@att.com
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