AT&T Latin America Team:

AT&T’s second quarter results show that AT&T had a solid second quarter and half-way through the year we’re on track to deliver on our commitments. At a corporate level, we used our record free cash flow and our asset sales to pay down our debt. And we’re confident we’ll meet our year-end net debt to adjusted EBITDA target of being in the 2.5x range. We’ve started the year with good momentum and I’m confident that we’ll finish it strong. In fact, this morning we’ve raised our free cash flow guidance for 2019 to the $28 billion range, up $2 billion, and we reaffirmed all other guidance for the year.

Across the company, other businesses also delivered solid results. U.S. Wireless is about half of our overall EBITDA and it continues to fire on all cylinders. We grew revenues and EBITDA, and had positive phone net adds, both postpaid and prepaid. Our Entertainment Group continues to stabilize and even grow its profitability. Serving a profitable and sustainable video subscriber base is our focus. WarnerMedia delivered another strong quarter with double-digit operating income growth and announced that HBO Max will be the name of our new streaming service launching next spring.

In AT&T Latin America, we held our own and continued to deliver on our 2019 commitments. In Mexico, we hit the 18 million mark this quarter for total subscribers and we have line of sight to achieve break-even EBITDA in the second half. Vrio did its part by contributing positive cash flow. And the team has done a good job managing costs, despite the challenging market conditions.

Beyond the financials, AT&T Latin America made strong progress this quarter too. In Vrio, we took the next step in our video journey by expanding our new DIRECTV GO streaming app to current DIRECTV customers in 4 more countries. And in Mexico, we earned the highest customer ratings in the industry.

At the heart of AT&T Latin America is our exceptional team and culture. I’m thrilled that -- once again – we were recognized as a “Great Place to Work” in both AT&T Mexico and Vrio.

I’m proud of the work we are doing together. But we still have much work to do. As we move into the second half, let’s continue our focus on profitable growth and managing costs. It won’t be easy, but with the best team in the business, I know we can do it.