AT&T CEO Updates Shareholders at J.P. Morgan Conference

Rhea-AI Summary

John Stankey, CEO of AT&T, updated shareholders at the J.P. Morgan Global Technology, Media & Communications Conference. He emphasized the company's disciplined growth strategy, noting strong customer acquisition in wireless and fiber services. While mobile demand remains robust, it is not expected to match 2021 levels. The fiber build is progressing well, supported by competitive pricing. AT&T is also active in the Affordable Connectivity Program to bridge the digital divide with a $2 billion commitment. The company is managing inflationary pressures with targeted price adjustments and aims for $1 billion in cost reductions this year.

Positive

• Continued growth in customer relationships across wireless and fiber.
• Robust mobile demand with no near-term decline expected.
• Strong adoption and penetration rates in fiber builds.
• Active engagement in the Affordable Connectivity Program with a $2 billion commitment.
• Strategic price increases for legacy plans allowing customers better options.
• On track for $1 billion in cost reductions.

Negative

• Postpaid wireless demand expected to decline compared to 2021 levels.

DALLAS--(BUSINESS WIRE)-- John Stankey, chief executive officer of AT&T Inc.* (NYSE:T), spoke today at the J.P. Morgan Global Technology, Media & Communications Conference where he provided an update to shareholders.

Stankey reiterated AT&T’s disciplined growth and investment strategy and made the following points:

• The company continues to grow customer relationships across wireless and fiber and feels good about the momentum it’s experiencing on the back of its consistent simplified go-to-market strategy.
• Overall mobile demand remains healthy, and AT&T continues to find success in the marketplace. While the company retains its view that 2022 postpaid wireless demand is unlikely to repeat 2021 levels, Stankey indicated the company is not seeing signs of any near-term step down in demand levels.
• AT&T’s fiber build momentum continues. Stankey indicated that the combination of AT&T’s high-quality differentiated product, simplified pricing and an improved go-to-market strategy continue to support strong adoption levels and improved penetration rates.
• Stankey indicated that the company continues to work diligently with state and local government municipalities across the country to successfully participate in the Affordable Connectivity Program by providing affordable broadband connectivity to low-income customers. This program aligns with AT&T’s 3-year, $2-billion commitment to help close the digital divide. Over time, the company also believes these efforts can help provide internet for all as well as expand the total addressable market for broadband access.
• AT&T remains comfortable in its ability to manage inflationary pressures impacting the economy. The company recently introduced careful and deliberate price increases for select legacy wireless plans, providing an opportunity for customers to move to AT&T’s best unlimited plans which offer more features and a better value dynamic for customers. The company also remains on track with its cost transformation program as it looks to deliver its stated goal of an incremental $1 billion of cost reduction this year.

*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.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20220523006049/en/

Brittany Siwald

AT&T Corporate Communications

Phone: (214) 202-6630

Email: brittany.siwald@att.com

Source: AT&T Inc.

FAQ

What did John Stankey announce at the J.P. Morgan Conference regarding AT&T's growth?

John Stankey highlighted AT&T's disciplined growth strategy, strong customer acquisition in wireless and fiber services, and robust mobile demand.

How is AT&T addressing inflationary pressures as mentioned in the recent press release?

AT&T is managing inflation by implementing careful price increases for select legacy plans and ensuring customers transition to better-value unlimited plans.

What is AT&T's commitment to the Affordable Connectivity Program?

AT&T is actively participating in the Affordable Connectivity Program with a commitment of $2 billion to provide affordable broadband connectivity to low-income customers.

What are AT&T's goals for cost reduction this year?

AT&T aims to achieve $1 billion in cost reductions through its ongoing cost transformation program.

What is the outlook for AT&T's mobile demand in 2022?

While AT&T expects postpaid wireless demand to not match 2021 levels, it does not foresee a near-term decline in overall demand.