DALLAS, May 20, 2024
/CNW/ -- Tune in at 8:10 a.m. ET on May
21 for a fireside chat with AT&T's chief executive
officer, where he will cover recent progress on the company's
multiyear growth strategy.
Key Takeaways:
- AT&T continues to make progress on its sustainable,
long-term growth strategy and remains on track to meet all of its
financial guidance.
- The company continues to see healthy customer demand for
world-class 5G and fiber connectivity.
- As one of the largest investors in telecommunications
infrastructure in the United
States, AT&T remains focused on building vital,
high-performance 5G and fiber networks. To support these efforts,
the company continues to expect 2024 capital investment in the
$21-22 billion range.
John Stankey, chief executive
officer, AT&T (NYSE: T) Inc., will speak tomorrow at the 52nd
Annual J.P. Morgan Global Technology, Media and Communications
Conference where he will provide an update to shareholders. Here
are the key topics Stankey is expected to cover:
The company's focus on leading with world-class connectivity
is working.
- AT&T continues to benefit from the connectivity-focused,
investment-led strategy it laid out nearly four years ago. By
executing on a simple playbook, the company is achieving steady
customer growth, improving returns and enabling additional
investments that are benefiting the business.
- 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.
AT&T remains focused on growing durable relationships
with high-quality 5G & fiber customers.
- The company continues to see healthy, but normalizing, wireless
industry trends and is pleased with how the Mobility business is
performing in the second quarter.
- AT&T Fiber penetration rates continue to exceed initial
business case assumptions with net adds varying from quarter to
quarter based on seasonality, market dynamics and the pace of new
fiber locations passed.
- AT&T's connectivity portfolio continues to expand and
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 95 locations for consumers and
nationwide for businesses.
- AT&T is uniquely positioned to offer converged services at
scale across its owned and operated 5G and fiber networks. With the
largest wireless network in North
America1 and the largest domestic consumer fiber
internet network2, AT&T benefits from owner's
economics when it adds converged mobile and broadband
subscribers.
AT&T remains on track to achieve its financial
guidance.
- The company remains confident in its ability to deliver on all
of the financial guidance shared during its earnings report in
April 2024.
- AT&T also remains focused on driving incremental
efficiencies through its goal of $2 billion+ in run-rate cost
savings by mid-2026.
- The company is on track to achieve net-debt to adjusted EBITDA
in the 2.5x range in the first half of 2025. It also plans to
continue addressing short-term financing obligations as it shapes
an even more sustainable and ratable free cash flow cadence.
AT&T continues to invest in the future of America's
connectivity.
- AT&T continues to make critical investments in its wireless
and fiber future. Over the past five years, from 2019 to 2023,
AT&T invested $145 billion+ primarily in its wireless and
wireline networks, including capital investments and acquisitions
of wireless spectrum3. To support its ongoing investment
in 5G and fiber, the company continues to expect 2024 capital
investment in the $21-22 billion
range.
- AT&T believes fiber is the best internet access technology
available today, and is pursuing a variety of models for connecting
more people with fiber.
- This includes AT&T's in-footprint fiber build, which
already passes 27 million+ consumer and business locations today
and remains on pace to pass 30 million+ consumer and business
locations by the end of 2025.
- Based on fiber returns that are better than initial
assumptions, AT&T sees a potential opportunity to 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 incentivizes investing in
America's robust connectivity needs.
- Outside of AT&T's footprint, its Gigapower joint venture
with BlackRock, through a fund managed by its Diversified
Infrastructure business, has been up and running for just over a
year with fiber build progress in parts of Arizona, Florida, Minnesota, Nevada, New
Mexico, North Carolina,
Pennsylvania and South Carolina.
- The company is also pursuing opportunities to invest in fiber
through public-private partnerships including the American Rescue
Plan (ARP) and Broadband Equity,
Access and Development (BEAD) Program.
- In Mobility, AT&T is advancing and modernizing its wireless
network by accelerating the transition to Open Radio Access
Networks (Open RAN), which the company believes will enable a more
robust supplier ecosystem and drive efficiencies and longer-term
cost savings.
- Additionally, through a definitive commercial agreement with
AST SpaceMobile, AT&T recently took another step toward
providing more ubiquitous connectivity for consumers and businesses
via a space-based broadband network direct to everyday cell
phones. In 2023, in collaboration with AT&T, AST SpaceMobile
delivered several industry-first wins such as the first-ever 5G
cellular connectivity, 4G voice and video call, and text via space
between everyday smartphones.
- These collective efforts to enhance, expand and differentiate
AT&T's network further improve our ability to provide customers
with high-speed internet service wherever they are, and advance
AT&T's progress on becoming America's best converged
connectivity provider.
The webcast of Stankey's conversation will be available live,
and 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. 5G claim based on nationwide GWS drive
test data. GWS conducts paid drive tests for AT&T and uses the
data in its analysis. AT&T 5G requires compatible plan and
device. 5G coverage not available everywhere. Learn more
at att.com/5Gforyou.
2 Based on publicly available data of the number
of fiber-to-the-home households.
3 The years ended December 31,
2020 through 2023 present results from continuing
operations, and the year ended December 31,
2019 includes comparable adjustments to remove capital
expenditures from discontinued operations.
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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Intellectual Property.
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SOURCE AT&T