AT&T CFO briefs shareholders at Deutsche Bank conference

AT&T CFO briefs shareholders at Deutsche Bank conference

Pascal Desroches, Chief Financial Officer of AT&T Inc.* (NYSE:T), spoke today at the Deutsche Bank Media, Internet & Telecom Conference where he provided an update to shareholders.

Desroches reiterated AT&T’s growth strategy – presented at the Analysts & Investors Day on March 11 – for the standalone company following the imminent closing of the WarnerMedia transaction. AT&T intends to become the best broadband provider in the United States, backed by a best-in-class network with fiber at its core and integrated with wireless.

AT&T announced that it plans to:

  • Drive additional wireless subscriber growth by maintaining its consistent go-to-market strategy, increasing penetration in underserved customer segments, and cross-selling wireless services across its expanding fiber footprint.
  • Continue to optimize its cost structure through ongoing transformation initiatives, with opportunities to generate an additional $2.5 billion in cumulative cost savings over the next 2 years to reach its previously announced target of $6 billion cost savings by the end of 2023.
  • Maintaining a capital allocation strategy focused on total return with a focus on investing for growth – with a capital investment of around $24 billion for 2022 and 2023 – and strengthening its balance sheet. 1 At the same time, AT&T will deliver shareholder returns via an attractive dividend near the top of the Fortune 500.

Along with reiterating the company’s 2022 guidance provided last Friday, Desroches discussed near-term business trends. As already stated, the company plans to increase its investments in 2022 to support its fiber rollout and midband 5G spectrum rollout. This investment in growth, combined with additional investments to support the ongoing rationalization of AT&T’s commercial wireline portfolio, is expected to result in a corresponding year-over-year increase in capital investment. Additionally, as noted at its analyst day, the company expects approximately $600 million of adjusted EBITDA headwinds due to its 3G downtime costs and lack of CAF II credits. , weighted in the first half and in particular in the first quarter of 2022.2 As these headwinds ease, the company expects its adjusted EBITDA trajectory to improve throughout the year. Desroches also said AT&T continued to see healthy trends in first-quarter wireless service sales after leading the industry in postpaid phone network additions in 2021. The company reports first-quarter results. 2022 on April 21, 2022.

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