AT&T CEO Updates Shareholders at Goldman Sachs Communicopia + Technology Conference
13 September 2022 - 5:25AM
Business Wire
John Stankey, chief executive officer, AT&T* Inc. (NYSE:T),
spoke today at the Goldman Sachs Communicopia + Technology
Conference where he provided an update to shareholders.
Stankey reiterated that AT&T continues to take a disciplined
and return-focused approach to growth and investment and made the
following points:
- The company continues to add customers in its strategic focus
areas of 5G and fiber. Stankey shared he feels comfortable with
AT&T’s business trajectory and the continued customer demand it
is seeing. Overall industry postpaid phone volumes remain healthy,
and AT&T’s consistent go-to-market approach, along with an
improved customer experience, is attracting high-value
customers.
- Stankey said AT&T is developing diversified sources of
growth, with wireless share gain in specific customer cohorts, such
as the public sector and large and mid-sized business. He expects
this momentum to continue thanks to a strong distribution
ecosystem, a high-performing workforce and enhanced network quality
strengthened by recent mid-band 5G spectrum deployments. He also
added that recent pricing actions are performing as anticipated,
supporting the company’s view that these actions will be accretive
in the latter half of the year.
- Stankey shared that AT&T Fiber continues to deliver the
best customer experience in the marketplace and that he’s pleased
with the penetration rates for new fiber build. As AT&T expands
to new markets, the company has seen first-year penetration rates
about two times greater than historical norms. Stankey expects
subscriber momentum and current penetration rates to continue based
on the company’s improved ability to build fiber effectively and
the strong customer demand for the product. Fiber ARPU continues to
grow, and the company is seeing higher than anticipated uptake of
its multi-gig fiber offerings.
- AT&T continues to expand its fiber footprint and has the
ability to serve 18 million customer locations in more than 100
metro areas with AT&T Fiber. Stankey shared there may be an
opportunity to expand the company’s fiber footprint based on the
attractiveness of returns and that government subsidies supporting
public-private partnership are expected to help drive broadband
expansion.
- AT&T remains focused on its cost transformation program and
its efforts to achieve more than $4 billion of its $6 billion
run-rate cost savings target by the end of the year. Stankey noted
that he’s comfortable with AT&T’s cost structure, and believes
the company can continue to drive out costs as it exits portions of
its legacy businesses. This includes efforts to transition from its
legacy copper network to fiber.
- Stankey shared that AT&T is investing at a record clip to
fuel growth in core connectivity, while continuing to pay an
attractive dividend, and that the company is focused on building a
sustainable and durable connectivity operation with improved cash
generation. AT&T is pleased with the return profile of its
fiber and 5G investments and continues to expect 2022 and 2023 to
be the peak of this capital investment cycle with capital intensity
moderating in 2024 and beyond. Overall, the company’s long-term
capital allocation priorities remain unchanged, and it expects to
use cash after dividends to reduce debt with a goal of reaching a
net debt-to-adjusted EBITDA range of 2.5x.
*About AT&T
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.
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 https://investors.att.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220912005982/en/
Brittany Siwald AT&T Corporate Communications Phone: (214)
202-6630 Email: brittany.a.siwald@att.com
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