AT&T Communications CEO Updates Shareholders
Jeff McElfresh, chief
executive officer of AT&T Communications, spoke today at the
Wells Fargo Technology Media and Telecom Summit, where he provided
an update on AT&T (NYSE:T).
McElfresh discussed momentum in AT&T’s wireless business,
noting that AT&T’s consistent go-to-market strategy has driven
improved market position supported by healthy wireless service
revenue and EBITDA1 growth. McElfresh noted that over the past five
quarters2 the company has delivered its best subscriber results in
a decade, with nearly 4 million postpaid phone net additions, and
1.4 million fiber net additions. At the same time, wireless
delivered its best-ever EBITDA in the third quarter of 2021, up
3.6% year over year.
Looking forward, McElfresh is encouraged by underlying mobile
industry trends and sees limited signs that suggest a near-term
shift in demand levels. He said he believes AT&T’s momentum is
sustainable with the company’s simplified plans, targeted
subsegment approach, improved customer experience and network
performance all helping AT&T retain and attract subscribers,
leading to lower churn and increased customer lifetime value.
Reiterating recent comments by CFO Pascal Desroches, McElfresh
indicated that AT&T’s outlook for 2022 and beyond does not
assume a continuation of outsized industry net adds. Should recent
mobile industry trends continue, he believes the changes made to
AT&T’s go-to-market strategy puts the company in a better
position to capitalize on healthier than anticipated demand.
McElfresh noted that AT&T continues to see postpaid phone
ARPU stabilizing in 2022 with an improvement in international
roaming and subscribers adopting higher-ARPU plans balancing the
impact of amortization accounting for device promotions. McElfresh
said that fewer than a quarter of gross adds and upgrades in the
third quarter traded in newer devices for premium promotional
offers. As previously noted, only about 20% of AT&T’s postpaid
smartphones are on Unlimited Elite – the company’s highest-ARPU and
fastest-growing rate plan.
With postpaid phone ARPU stabilizing in 2022, AT&T expects
higher wireless service revenues from a growing postpaid subscriber
base. McElfresh also indicated that he believes AT&T can
continue to profitably increase its wireless market share going
forward and reiterated that the company continues to expect
fourth-quarter EBITDA growth to exceed third-quarter levels.
AT&T Inc. (NYSE:T) is a diversified, global leader in
telecommunications, media and entertainment, and technology.
AT&T Communications provides more than 100 million U.S.
consumers with entertainment and communications experiences across
mobile and broadband. Plus, it serves high-speed, highly secure
connectivity and smart solutions to nearly 3 million business
customers. WarnerMedia is a leading media and entertainment company
that creates and distributes premium and popular content to global
audiences through its consumer brands, including: HBO, HBO Max,
Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line,
Cartoon Network, Adult Swim and Turner Classic Movies. Xandr, now
part of WarnerMedia, provides marketers with innovative and
relevant advertising solutions for consumers around premium video
content and digital advertising through its platform. AT&T
Latin America provides wireless services to consumers and
businesses in Mexico.
AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T
brand and not by AT&T Inc. Additional information is available
at about.att.com. © 2021 AT&T Intellectual Property. All rights
reserved. AT&T, the Globe logo and other marks are trademarks
and service marks of AT&T Intellectual Property and/or AT&T
affiliated companies. All other marks contained herein are the
property of their respective owners.
Cautionary Language Concerning Forward-Looking
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
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.
1 EBITDA is operating income before depreciation and
2 Through third quarter 2021
version on businesswire.com: https://www.businesswire.com/news/home/20211130006087/en/
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