- AT&T (NYSE:T) CFO Pascal Desroches spoke at the Credit Suisse Communications conference. Key snippets are posted below.
- "...in the most recent quarters, AT&T’s mobility strategy of focusing on the long-term value of its high-value customer base has been successful in reversing previous subscriber losses".
- "...as the company accelerates its deployment of C-band spectrum, it expects to cover 200 million people by the end of 2023".
- "...the company’s plan to double the size of AT&T's fiber footprint to about 30 million customer locations by year-end 2025".
- "He expects WarnerMedia’s Q2'21 results to benefit from positive comparisons to Q2'20. He expressed confidence in the upcoming planned international launch of HBO Max and in the company’s ability to deliver on its guidance of 67 to 70 million HBO Max customers by the end of 2021".
- "...reiterated the guidance for 2022-2024 after the expected close of the pending WarnerMedia-Discovery transaction; expects to generate $20 billion-plus in free cash flow on an annual basis post-close, with a dividend payout ratio in the 40% to 43% range..."
- "The company expects to increase capital investment to around $24 billion annually, focused on 5G and fiber."
- "...expects net debt to adjusted EBITDA in the 2.6x range after the transaction closes, moving to less than 2.5x by year-end 2023.5 AT&T expects to have the optionality to repurchase shares once net debt to adjusted EBITDA is less than 2.5x."
- "The company’s capital allocation decisions after the close of the WarnerMedia transaction will be guided foremost by where management expects to generate the best returns for its shareholder base."
- "The company doesn’t expect to reset the current dividend until after the proposed WarnerMedia-Discovery transaction."
- "Post-closing, he expects that the resized dividend will continue to deliver a very attractive yield in the 95th percentile of dividend yielding stocks."
- AT&T to announce Q2'21 results on July 22, before market opens.
- Transcript, Conference Presentation.
- Recently, SA contributor Pinxter Analytics highly bullish on the company's long-term prospects.