AT&T remains committed to expanding its 5G and fiber services, aiming to solidify its position as the best connectivity provider in America, John Stankey, Chairman and CEO of AT&T, said.
Through its investment-led strategy, the company is actively building a future-ready network that enables customers to access converged services from a single provider. By the end of the decade, AT&T expects to be in a highly differentiated position within the connectivity industry, offering superior service and network capabilities, John Stankey said at the Morgan Stanley Technology, Media & Telecom Conference.
In its Mobility segment, AT&T anticipates full-year wireless service growth in the higher end of the 2 percent to 3 percent range, with Mobility EBITDA growth in the upper 3 percent to 4 percent range. The company projects a stable wireless market for 2025, with a normalization of net additions and customer activity levels.
With device promotion cycles returning to typical seasonal trends in late 2024, postpaid phone net additions in January reflected this normalization along with seasonal fluctuations and promotional timing. However, AT&T has observed strong customer engagement following the launch of AT&T Guarantee and other recent offers, which is expected to sustain performance throughout the quarter.
In Consumer Wireline, AT&T continues to project mid-teen percentage growth in consumer fiber broadband revenue, along with high-single to low-double-digit Consumer Wireline EBITDA growth. The company’s fiber penetration rates are surpassing initial business case expectations, with net additions influenced by new fiber deployments, seasonal demand shifts, and overall market conditions.
Meanwhile, in Business Wireline, AT&T expects EBITDA to decline in the mid-teens range due to ongoing industry-wide reductions in legacy services.
AT&T remains on track to achieve its financial and operational goals set for 2025 and beyond, as outlined during its fourth-quarter 2024 earnings call and Analyst & Investor Day. The company has projected over $50 billion in financial capacity over the next three years, primarily from organic growth, alongside expected proceeds from selling its DIRECTV stake and increased borrowing flexibility upon reaching its net leverage target.
As part of its capital return strategy, AT&T plans to distribute over $40 billion to shareholders through dividends and share repurchases. The company intends to maintain its annualized common stock dividend at $1.11 per share, resulting in total dividend payments exceeding $20 billion from 2025 to 2027. Additionally, AT&T has allocated approximately $20 billion for share repurchases, with $10 billion already authorized and expected to be executed by the end of 2026, followed by another $10 billion in 2027, pending board approval.
AT&T’s strategy also includes $10 billion in additional financial flexibility for strategic investments, debt reduction, or increased shareholder returns. The company aims to achieve a net leverage ratio of 2.5x net-debt-to-adjusted EBITDA by the first half of 2025 and maintain this balance through 2027. This financial discipline ensures AT&T remains well-positioned to deliver strong connectivity services while returning significant value to its shareholders.
TelecomLead.com News Desk
