DALLAS, Dec. 9, 2024
/CNW/ -- Tomorrow, AT&T's chief executive officer will
participate in a fireside chat where he will discuss the Company's
multi-year strategic growth plan.
Key Takeaways:
- AT&T is embarking on a multi-year strategic growth plan
that centers around putting customers first and continued network
investment.
- AT&T continues to make progress on becoming the best
connectivity provider in America and remains on track to meet all
of the financial and operational guidance shared during its 2024
Analyst & Investor Day.
John Stankey, chief executive
officer, AT&T Inc. (NYSE:T), will speak tomorrow at the
UBS Global Media & Communications Conference where he will
provide an update to shareholders. Stankey is expected to cover key
topics discussed below.
AT&T's multi-year strategic growth plan will
substantially advance its progress on becoming the best
connectivity provider in America
As a result of the investment-led strategy announced at its 2024
Analyst & Investor Day, the Company expects to be in a
differentiated position within the connectivity industry by the end
of the decade.
In Mobility, the Company is building a more efficient,
high-capacity, programmable and open network. By 2027, it expects
to have largely completed the modernization of its 5G wireless
network with open technology, with deep mid-band 5G spectrum
covering 300 million+ people by the end of 2026.
In broadband, the Company already has the largest fiber
broadband network in America. By the end of 2029, it expects to
reach 50 million+ total locations with fiber1. This
includes expectations to pass about 45 million locations through
its organic fiber deployment and to serve 5 million+ fiber
locations through Gigapower, its joint venture with Blackrock, as
well as through agreements with commercial open-access
providers.
These collective efforts increase AT&T's opportunity to
serve customers how they want to be served, by one provider in a
converged manner. While building the network of the future, the
Company is actively working to exit its legacy copper network
operations across the large majority of its wireline footprint by
the end of 2029.
AT&T remains on track to meet all of the financial and
operational guidance shared during its 2024 Analyst & Investor
Day
As discussed during the Company's 2024 Analyst & Investor
Day, it expects 2025 Free Cash Flow of $16 billion+, when
excluding DIRECTV. The expected drivers of next year's free cash
flow growth include Adjusted EBITDA growth, lower cash interest
from lower debt balances, the absence of network termination fee
payments in 2025 and lower working capital impacts in 2025 compared
to 2024. These items are expected to more than offset an expected
increase in cash taxes.
AT&T expects its multi-year strategic plan to provide $50
billion+ of financial capacity over the next three years, largely
through organic growth. Financial capacity represents anticipated
free cash flow after distributions to noncontrolling interests,
plus expected cash payments from the announced agreement to sell
AT&T's stake in DIRECTV to TPG, as well as net borrowing
capacity after the Company achieves its net leverage target.
The Company continues to expect to achieve its net leverage
target of net-debt-to-adjusted EBITDA in the 2.5x range in the
first half of 2025 and maintain leverage within this range through
2027.
The Company expects to return $40 billion+ of this financial
capacity to shareholders through dividends and share repurchases.
Under this capital return plan, the Company expects to maintain its
current annualized common stock dividend of $1.11 per share. This plan would result in $20
billion+ in total dividend payments, with capacity for about
$20 billion in share repurchases,
from 2025-2027.
The plan also contemplates approximately $10 billion in incremental financial flexibility
for items such as potential organic or inorganic strategic growth
investments, debt repayment, redemptions of noncontrolling
interests, or additional dividends or share repurchases.
Tune in for the fireside chat with John
Stankey at the UBS Global Media & Communications
Conference, scheduled to begin at 8:15 a.m.
ET. The webcast will be available live and for replay at
AT&T Investor Relations.
To automatically receive AT&T financial news by email,
please subscribe to email alerts.
1 "Total locations" includes consumer and business
locations (i) passed with fiber and (ii) served with fiber through
commercial open-access providers.
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 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