AT&T CFO Updates Shareholders at Credit Suisse Conference
Pascal Desroches, senior executive vice president and chief
financial officer, AT&T Inc.* (NYSE:T), spoke today at the
Credit Suisse Annual Communications Conference where he provided an
update to shareholders.
Desroches reiterated that AT&T has taken a disciplined
approach to growth and investment and made the following
- The company continues to grow customer relationships in its
strategic focus areas of 5G and fiber. Desroches said the company
continues to see healthy consumer demand even with continued
expectations that 2022 postpaid wireless industry demand is
unlikely to replicate 2021 levels. AT&T continues to
successfully attract high-value customers with its consistent,
simple go-to-market strategy.
- Desroches remains comfortable that the company can deliver
improving postpaid phone ARPU trends in 2022. He noted that
postpaid phone ARPU could in fact edge up sequentially in the
- Desroches also reiterated expectations for gradual improvement
in year-over-year mobility EBITDA trends through the course of
2022. Following a more pronounced impact in the second quarter, the
revenue and EBITDA impacts of the previously announced 3G network
shutdown and the absence of approximately $100 million in CAF II
and FirstNet related reimbursements are expected to be more than
mitigated in the back half of year by organic service revenue
growth and the lapping of 3G shutdown costs comparisons in the
second half of 2021.
- AT&T’s fiber build progress continues with expectations to
achieve 30+ million customer locations by 2025. Desroches noted
that AT&T is acquiring new customers and seeing strong
penetration rates thanks to a straightforward go-to-market
- Desroches shared that the company continues to work with state
and local government municipalities across the country to provide
affordable broadband connectivity to low-income customers through
the Affordable Connectivity Program. Over time, the company
believes these efforts can help provide internet for all Americans
and expand the total addressable market for broadband access.
Additionally, Desroches indicated that any federal funding in
support of the company’s fiber buildout would be deployed to expand
its network to additional customer locations, representing
potential upside above AT&T’s existing guidance.
- AT&T continues to work through its business wireline
portfolio rationalization process and focus its efforts on core
transport and connectivity solutions. Desroches noted that the
company has yet to see a recovery in government sector demand
trends which impacted the business during the first quarter.
- With regard to the macroeconomic environment, Desroches said
that the company considered a higher-than-typical level of
inflation when setting 2022 budget. The company’s recent pricing
increases were a response to higher-than-expected inflation trends.
Additionally, the company has opportunities to address the impacts
of inflation with its ongoing cost savings initiative, which is
expected to reach a run rate of $4+ billion by the end of this
- Desroches stated the company feels good about its financial
flexibility, does not plan to issue any debt in the near-term and
remains focused on its goal of achieving a net debt-to-adjusted
EBITDA ratio in the 2.5x range by the end of 2023.
We help more than 100 million U.S. families, friends and
neighbors connect in meaningful ways every day. 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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Brittany Siwald AT&T Corporate Communications Phone: (214)
202-6630 Email: firstname.lastname@example.org
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