DALLAS, Dec. 5, 2023
/CNW/ -- As part of AT&T's multiyear strategy to drive
sustainable and profitable growth, the company detailed how it will
accelerate network innovation, efficiency and structural cost
improvement across the largest wireless network in North America1.
Key Takeaways:
- AT&T continues to execute its sustainable long-term growth
strategy. The company is on track to generate full-year free cash
flow of about $16.5 billion, and
achieve its goal of 2.5x net-debt to adjusted EBITDA in the first
half of 2025.
- As one of the largest investors in the United States, the company remains focused
on building vital digital infrastructure for both mobile and fiber
networks. To support these efforts, the company expects 2024
capital investment in the $21-22
billion range.
- AT&T is making a critical investment in its wireless future
and accelerating the transition to Open Radio Access Networks (Open
RAN) through its collaboration with Ericsson. By scaling an Open
RAN environment, this will enable a more robust supplier ecosystem,
and drive efficiencies and longer-term cost savings. More on this
announcement here.
- Based on returns from fiber coming in better than initial
assumptions, AT&T now sees an opportunity to potentially pass
an incremental 10 to 15 million consumer and business fiber
locations within its existing footprint – assuming similar build
parameters and a regulatory environment that remains attractive to
building infrastructure. The company remains committed to its
existing 30 million-plus target of consumer and business fiber
locations passed by the end of 2025.
John Stankey, chief executive officer, AT&T* (NYSE: T)
Inc., spoke today at the UBS Global Media & Communications
Conference where he provided an update to shareholders. Stankey
made the following key points:
The company's focus on leading in connectivity, is
working.
- Stankey reiterated that AT&T continues to benefit from the
focused strategy it laid out three years ago – to be the best
broadband connectivity provider in America. By executing a
consistent playbook, the company is powering customer growth,
improving returns and enabling additional investments that are
benefiting the business today.
- AT&T's simple and consistent go-to-market approach
continues to resonate with customers and has created a sustainable
model for healthy growth and strong cash conversion.
- The company successfully invested around $100 billion in capital investment and spectrum
in America's infrastructure, while also lowering net debt by
approximately $20 billion over the
three-year period that ended with the second quarter of 2023.
AT&T is on track for 2023 full-year free cash flow of
about $16.5 billion.
- The company remains confident in its ability to deliver free
cash flow of about $16.5 billion this
year.
- Stankey reiterated the company remains focused on driving
incremental efficiencies with an additional $2 billion-plus in savings by mid-2026. This is
largely driven by sunsetting legacy products and supporting
infrastructure. The company also continues to see benefits from the
deployment of AI to better serve customers.
- The company remains on track to reduce net debt and to achieve
a leverage target of 2.5x net-debt to adjusted EBITDA in the first
half of 2025. Additionally, AT&T remains in a strong position
to pay for the next two years of debt maturity towers as they come
due with cash on hand, given 95% plus of its debt is fixed at an
average rate of 4.2% with a weighted average maturity of 16
years.
AT&T remains focused on growing durable relationships
with high-quality 5G & fiber customers.
- Stankey highlighted that AT&T is uniquely positioned to
take advantage of its owned and operated scaled wireless and fiber
networks. Unlike others in the industry, the company realizes
economic benefit from both wireless and fiber when it adds
converged subscribers.
- Stankey shared that demand remains healthy and as a result, the
company expects sequential postpaid phone net add growth. The
company expects continued fiber customer additions that reflect
normal fourth quarter seasonality.
- AT&T's connectivity toolkit includes multiple technologies,
including 5G, fiber and the company's fixed wireless access product
– AT&T Internet Air – which is now available in parts of 34
markets. Stankey shared the company continues to take a measured
approach with consumer fixed wireless access offerings and views
the service as an attractive connectivity option for businesses
nationwide.
AT&T is investing in the future of America's
connectivity.
- AT&T is focused on becoming America's best connectivity
provider and remains on track with all of its 5G and fiber network
expansion commitments. AT&T mid-band 5G spectrum is now
available nationwide, covering more than 200 million people –
another step to expand the most reliable 5G
network2.
The webcast of Stankey's conversation is available for replay at
AT&T Investor Relations.
1 Based on comparison of carrier owned & operated
networks. No AT&T on-net coverage in select countries,
including Canada. Details:
att.com/international. Destinations
covered: att.com/globalcountries
2 Based on nationwide GWS drive test data. GWS
conducts paid drive tests for AT&T and uses the data in its
analysis. Req's compatible plan & device. Coverage
not available everywhere. Learn more at att.com/5Gforyou
*About AT&T
We help more than 100 million U.S.
families, friends and neighbors, plus nearly 2.5 million
businesses, connect to greater possibility. From the first phone
call 140+ years ago to our 5G wireless and multi-gig internet
offerings today, we @ATT innovate to improve lives. For more
information about AT&T Inc. (NYSE:T), please visit us
at about.att.com. Investors can learn more
at investors.att.com.
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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SOURCE AT&T