AT&T CEO John Stankey Updates Shareholders at Goldman Sachs Communacopia + Technology Conference on September 10

Rhea-AI Summary

AT&T CEO John Stankey provided an update on the company's progress at the Goldman Sachs Communacopia + Technology Conference. Key highlights include:

• AT&T remains on track to meet all consolidated financial guidance
• The company is focused on growing durable converged relationships with high-quality 5G and fiber customers
• Wireless industry trends are healthy but normalizing
• Fiber penetration rates exceed initial business case assumptions
• AT&T's connectivity portfolio now includes 5G, fiber, and fixed wireless access in 204 geographies
• Capital investment for 2024 is expected to be in the $21-22 billion range
• The company aims for $2 billion+ in run-rate cost savings by mid-2026
• AT&T is on track to achieve a net-debt to adjusted EBITDA ratio of 2.5x in the first half of 2025

Positive

• AT&T remains on track to meet all consolidated financial guidance
• Fiber penetration rates exceed initial business case assumptions
• Connectivity portfolio expanded to include 5G, fiber, and fixed wireless access in 204 geographies
• Company aims for $2 billion+ in run-rate cost savings by mid-2026
• On track to achieve net-debt to adjusted EBITDA ratio of 2.5x in first half of 2025

Negative

• Fiber installations currently impacted by work stoppage in a portion of AT&T's footprint
• Capital investment for 2024 expected to be in the high range of $21-22 billion

DALLAS, Sept. 10, 2024 /PRNewswire/ -- Today, AT&T's chief executive officer participated in a fireside chat where he covered recent progress on the Company's multi-year growth strategy.

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.

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.

About AT&T

We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. 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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SOURCE AT&T

FAQ

What is AT&T's (T) expected capital investment for 2024?

AT&T expects its capital investment for 2024 to be in the range of $21-22 billion to support ongoing investment in 5G and fiber infrastructure.

How much cost savings is AT&T (T) aiming to achieve by mid-2026?

AT&T is aiming to achieve over $2 billion in run-rate cost savings by mid-2026 as part of its focus on driving incremental efficiencies.

What is AT&T's (T) target for net-debt to adjusted EBITDA ratio?

AT&T is on track to achieve a net-debt to adjusted EBITDA ratio in the 2.5x range in the first half of 2025.

How many geographies does AT&T's (T) fixed wireless access product cover as of September 2024?

AT&T's fixed wireless access product, AT&T Internet Air, is available in parts of 204 geographies for consumers and nationwide for businesses as of September 2024.