DALLAS, March 4,
2025 /PRNewswire/ -- Today, AT&T's chairman
and chief executive officer participated in a fireside chat where
he discussed the Company's multi-year strategic growth
plan.
Key Takeaways:
- AT&T is embarking on a multi-year strategic growth plan
that centers around putting customers first and continued network
investment.
- AT&T continues to make progress on becoming the best
connectivity provider in America and remains on track to meet all
of the financial and operational guidance shared during its fourth
quarter 2024 earnings conference call and its 2024 Analyst &
Investor Day.
John Stankey, chairman and chief executive officer,
AT&T* Inc. (NYSE:T), spoke today at the Morgan Stanley
Technology, Media & Telecom Conference where he provided an
update to shareholders.
AT&T remains on track to achieve its 2025 consolidated
financial guidance and deliver on its multi-year outlook
AT&T remains on track to meet all of the 2025 and multi-year
financial and operational guidance shared during its fourth quarter
2024 earnings conference call and at its 2024 Analyst &
Investor Day. As previously disclosed, the Company will report
2025 free cash flow and Adjusted EPS excluding DIRECTV.
AT&T expects its multi-year strategic plan to provide $50
billion+ of financial capacity over the next three years, largely
through organic growth. Financial capacity represents anticipated
free cash flow after distributions to noncontrolling interests,
plus expected cash payments from the announced agreement to sell
AT&T's stake in DIRECTV to TPG, as well as net borrowing
capacity after the Company achieves its net leverage target.
The Company expects to return $40 billion+ of financial capacity
to shareholders through dividends and share repurchases. Under this
capital return plan, the Company expects to maintain its current
annualized common stock dividend of $1.11 per share. This plan would result in $20
billion+ in total dividend payments, with capacity for about
$20 billion in share repurchases,
from 2025-2027.
Of the $20 billion share
repurchase capacity, AT&T's Board previously authorized an
initial tranche of approximately $10
billion in common stock repurchases. Management expects
share repurchases under this authorization to commence when the
Company reaches its net leverage target range and expects to
conclude by the end of 2026. Additionally, the Company expects
approximately $10 billion of share
repurchases in 2027, pending Board authorization.
The plan also contemplates approximately $10 billion in incremental financial flexibility
for items such as potential organic or inorganic strategic growth
investments, debt repayment, redemptions of noncontrolling
interests, or additional dividends or share repurchases.
The Company continues to expect to achieve its net leverage
target of net-debt-to-adjusted EBITDA in the 2.5x range in the
first half of 2025 and maintain leverage within this range through
2027.
AT&T remains focused on growing durable converged
relationships with high-quality 5G & fiber customers
AT&T's multi-year strategic growth plan will substantially
advance its progress on becoming the best connectivity provider in
America.
As a result of the investment-led strategy announced at its 2024
Analyst & Investor Day, the Company expects to be in a
differentiated position within the connectivity industry by the end
of the decade. While building the network of the future, AT&T
is increasing its opportunity to serve customers how they want to
be served, by one provider in a converged manner.
In Mobility, the Company continues to expect full-year wireless
service growth in the higher end of the 2% to 3% range and Mobility
EBITDA growth in the higher end of the 3% to 4% range. As
previously stated, AT&T's 2025 guidance anticipates a healthy
wireless market with further normalization of net adds and overall
activity levels.
Additionally, customers reaching the end of their device
promotions returned to a more normalized level on a seasonal basis
in the fourth quarter of 2024. Postpaid phone net additions in
January were impacted by this normalization, typical seasonality
and the timing of promotional offers. The Company is pleased with
the customer response to the recent launch of AT&T Guarantee
and offers introduced over the past several weeks and expects this
solid performance to continue for the remainder of the
quarter.
In Consumer Wireline, the Company continues to expect full-year
consumer fiber broadband revenue growth in the mid-teens and
Consumer Wireline EBITDA growth in the high-single to
low-double-digit range. AT&T Fiber penetration rates continue
to exceed initial business case assumptions with net adds varying
from quarter to quarter based primarily on the pace of new fiber
locations passed, seasonality and marketplace dynamics.
In Business Wireline, the Company continues to expect full-year
Business Wireline EBITDA to decline in the mid-teens range
primarily due to continued industry-wide secular declines in legacy
services.
Conference details and more are available on the AT&T
Investor Relations website
Full conference details are posted on the AT&T Investor
Relations website, including a replay of the webcast. To
automatically receive AT&T financial news by email, please
subscribe to email alerts.
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 investors.att.com.
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.
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