DALLAS, Dec. 11,
2023 /CNW/ -- Desroches detailed how AT&T is
poised to lead in converged connectivity as it successfully
executes on its multiyear strategy and adds valuable wireless and
fiber customers.
Key Takeaways:
- AT&T continues to execute its sustainable long-term growth
strategy. The company remains on track to generate full-year free
cash flow of about $16.5 billion,
grow adjusted EBITDA by 4%-plus and achieve an adjusted EPS at the
higher end of the previously shared $2.35-to-$2.45
range or in the low $2.40's range. It also remains on track to
achieving 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. The company also continues to expect to pass 30
million-plus consumer and business fiber locations by the end of
2025. Based on returns from fiber coming in better than initial
assumptions, AT&T 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.
- AT&T expects to deliver continued profitable 5G and fiber
customers in the fourth quarter. Fourth quarter postpaid phone net
adds are expected to grow sequentially and tracking to around
500,000. The company also expects fiber net adds in the 250,000
range for the fourth quarter which is reflective of normal
seasonality.
Pascal Desroches, chief financial
officer, AT&T* (NYSE:T) Inc., spoke today at the Oppenheimer
4th Annual 5G Summit where he provided an update to
shareholders. Desroches made the following key points:
The company's focus on leading in connectivity is working and
it remains 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, and expects free cash flow to improve in 2024 thanks to
continued, profitable wireless and fiber customer additions,
adjusted EBITDA growth, and lower capital investment in the
$21-22
billion-dollar range. These benefits are expected to be
partially offset by lower DIRECTV contributions and higher cash
taxes in 2024. In line with its strategy to appropriately manage
total liabilities, the company also continues to focus on reducing
net debt and its short-term financing obligations.
- Desroches reiterated that AT&T 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.
- The company expects 2024 adjusted EPS to reflect impacts of
accelerated depreciation resulting from the company's recently
announced plans to lead the United
States in commercial scale Open Radio Access Network
deployment, in collaboration with Ericsson.
AT&T remains focused on growing durable relationships
with high-quality 5G & fiber customers.
- Desroches 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.
- Desroches shared that connectivity demand remains healthy.
Accordingly, fourth quarter postpaid phone net adds are expected to
grow sequentially and tracking to around 500,000. The company also
expects fiber net adds in the 250,000 range for the fourth quarter
which is reflective of normal seasonality.
- AT&T's connectivity toolkit includes multiple technologies,
including 5G, fiber and the company's fixed wireless access (FWA)
product – AT&T Internet Air – which is now available in parts
of 34 locations. The company remains measured in where and how it
offers AT&T Internet Air, and as a result, it expects FWA
subscriber growth to vary from quarter to quarter.
The webcast of Desroches' conversation is available for
replay at AT&T Investor Relations.
*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