Key Takeaway:
- AT&T continues to make progress on its sustainable, long-term growth strategy and remains on track to meet all of its consolidated financial guidance.
John Stankey, chief executive officer, AT&T (NYSE:T) Inc., spoke today at the Goldman Sachs Communacopia + Technology Conference where he provided an update to shareholders. Topics included:
AT&T remains focused on growing durable converged relationships with high-quality 5G & fiber customers
- AT&T continues to see healthy, but normalizing, wireless industry trends and is pleased with how the Mobility business is performing in the third quarter.
- 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. Fiber installations are currently being impacted in a portion of AT&T’s footprint from a work stoppage, but the Company does not expect this to materially impact third quarter financial performance.
- 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 204 geographies for consumers and nationwide for businesses.
AT&T remains on track to achieve its consolidated financial guidance
- The Company remains confident in its ability to deliver on all of the consolidated financial guidance shared during its earnings report in July 2024.
- AT&T is the largest capital investor in U.S. connectivity infrastructure since 2019. 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 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.
The webcast of Stankey’s conversation is available for replay at AT&T Investor Relations.
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