Pascal Desroches, Chief Financial Officer of AT&T, has provided update on the company’s progress and future prospects at the Bank of America Media, Communications & Entertainment Conference.
Here are the key points highlighted in his address:
Successful Strategic Focus on Connectivity:
AT&T’s strategic focus on leading in connectivity has proven to be successful. Over the past three years, the company has strategically repositioned itself around its strengths in 5G and fiber, resulting in consistent execution of this strategy.
Healthy Financial Performance:
AT&T has witnessed continued growth in postpaid average revenues per user (ARPU) and robust wireless service revenue growth, underscoring the health of its wireless operations.
Significant Investment in Infrastructure:
The company’s success can be attributed to its substantial investment of around $100 billion in capital and spectrum in America’s infrastructure, while simultaneously reducing its net debt by approximately $20 billion.
Strong Free Cash Flow Outlook:
AT&T remains on track to achieve its 2023 full-year and third-quarter free cash flow targets. Desroches expressed confidence in the company’s full-year free cash flow guidance of better than $16 billion, with third-quarter free cash flow expected to be in the range of $4.5-5.0 billion.
Growth in 5G and Fiber:
AT&T continues to build durable relationships with high-quality 5G and fiber customers. The company expects to deliver profitable 5G and fiber customers in the third quarter, with plans to add postpaid phone customers despite market demand trends.
Expansion of Fiber Services:
AT&T’s fiber services have experienced seasonal growth, winning in both fiber and wireless markets. The company’s investment in fiber is supported by higher ARPUs, longer customer lifecycles, and the quality of service.
Convergence Advantage:
With ownership of both scaled wireless and fiber networks, AT&T is uniquely positioned to benefit from convergence, realizing economic benefits from both wireless and fiber when adding converged subscribers.
Future Connectivity Investment:
AT&T is committed to becoming America’s best connectivity provider and is on track with its 5G and fiber network expansion commitments. The company offers a diverse connectivity toolkit, including 5G, fiber, and AT&T Internet Air in multiple markets.
Fiber Expansion Plans:
AT&T plans to expand its fiber service by passing 30+ million consumer and business customer locations with fiber in its traditional service area by the end of 2025. The company is also pursuing additional fiber opportunities through joint ventures and government funding programs.
Advancements in Wireless Network:
AT&T is continuously advancing its wireless network to meet growing customer demand. The company’s nationwide 5G network now covers about 290 million people, with plans to deploy 5G+ to 200 million people by the end of 2023.
In conclusion, AT&T remains steadfast in its commitment to providing super-fast, reliable, high-capacity connectivity to Americans while maintaining a strong financial performance and strategic focus on 5G and fiber. Pascal Desroches’ address at the Bank of America conference reaffirms AT&T’s dedication to delivering value to its shareholders and customers alike.
