Friday, January 18, 2019

John Stephens, AT&T Chief Financial Officer, Speaks at Citi Conference

BWW News Desk
January 10, 2019

John Stephens ATampT chief financial officer spoke yesterday at the 2019 Global TMT West Conference in Las Vegas Stephens addressed the companys priorities for 2019 p ul li classbwlistitemmargb bGrowing free cash flow and paying down debt bATampT a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Finvestorsattcom2Fampesheet51924440ampnewsitemid20190110005801amplanenUSampanchorNYSE3ATampindex1ampmd574d653dd059f6d6d2a8d5df1cf600323 relnofollowNYSETa expects gross capital investment in the 23 billion range with free cash flowsup1sup in the 26 billion range with approximately 12 billion remaining after dividends The company intends to use the 12 billion as well as 6 billion to 8 billion it expects to raise from asset monetization to reduce debt The company plans to lower its netdebttoadjusted EBITDA ratio to the 25x range by the end of 2019 and to continue deleveraging through 2022 The vast majority of ATampTs debt is fixed rate protecting the company against interest rate increases li ul p classbwmarginl2 ATampT has increased its quarterly dividend for 35 consecutive years While dividend policy is determined by the companys board of directors ATampTs leadership plans to give the board the flexibility to continue its current policy of annual increases The company expects its 2019 dividend payout ratio will be in the high 50 rangesup2sup p ul li classbwlistitemmargb bDelivering solid wireless results with growth in service revenues and EBITDA bStephens said ATampT expects wireless service revenue growth to continue in 2019 ATampT is also focused on the transition to 5G technologies and is seeing speeds substantially faster than traditional LTE and with ultralow latency This will enable a wide range of use cases from IoT to manufacturing gaming to augmented and virtual reality li ul p classbwmarginl1 ATampT expects 5G will eventually represent a significant revenue stream for the company but does not expect it to be a significant revenue stream in 2019 The company expects 5G investment to be managed within current capital intensity levels p ul li classbwlistitemmargb bStabilizing Entertainment Group EBITDA bStephens said ATampT remains confident in its ability to keep EBITDA levels in its Entertainment Group stable in 2019 as the company focuses on cost controls profitability and retaining customers with offers that meet their needs EBITDA support will come from improving video ARPU as promotional pricing expires for about 2 million linear video subscribers and as annual price increases help offset content cost increases li ul p classbwmarginl1 The company will also focus on enhancing profitability in its overthetop offerings At the end of the second quarter last year about 500000 DIRECTV NOW subscribers were on 10 per month promotional pricing plans By yearend 2018 virtually no subscribers remained on this plan The company expects this and the expansion of its cloud DVR offer for DIRECTV NOW will support ARPU growth in 2019 p p classbwmarginl1 ATampT also expects growth in broadband revenues in 2019 driven by customer additions and ARPU increases as it expands its fiber network which offers higher speeds and high reliability By mid2019 ATampT expects to cover 14 million customer locations a nearly 30 increase from the end of 2018 p ul li classbwlistitemmargb bIntegrating WarnerMedia and sustaining growth at Home Box Office Turner and Warner Bros bWarnerMedias reputation for creative excellence along with its global scale portfolio of iconic brands and franchises and deep intellectual property including the Warner Bros library of content positions ATampT well for success li ul p classbwmarginl1 With the addition of WarnerMedia ATampT has become a modern media company with a combination of customer data insights and premium content that sets up a virtuous cycle ATampT can deliver premium content that drives consumer engagement which generates data to drive better advertising and monetization models In turn this generates returns to invest in better content which attracts even more viewers And Xandr ATampTs advertising and analytics unit gives the company further opportunities to monetize engagement p ul li classbwlistitemmargb bAccelerating advertising growth at Xandr bXandr lets ATampT combine data with advertising technology to make addressable TV advertising more effective and valuable for advertisers Over time ATampT expects to apply datapowered targeting to significantly improve the yield on linear advertising inventory li ul p classbwmarginl1 As announced earlier this week Xandr is working with WarnerMedias Turner unit to improve the relevancy of advertising fueled by data and content connections The two organizations bring together a unique set of assets valuable consumer data and insights advanced advertising capabilities and engaged passionate fanbases This will let them better serve marketers and deliver better experiences to consumers ATampT expects to realize 1 billion in revenuerelated synergies including its advertising operations by yearend 2021 p p ATampT announces fourthquarter and fullyear 2018 results on Wednesday January 30 Results will be available before 7 am ET and the company will host a call to discuss results at 830 am ET the same day The earnings release Investor Briefing and related materials as well as a live webcast of the call will be available at a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Finvestorsattcom2Fampesheet51924440ampnewsitemid20190110005801amplanenUSampanchorAT26TInvestorRelationsampindex2ampmd5224141ab86c7bf547d4b3bcca7b1ac34 relnofollowATampT Investor Relationsa p p sup1sup iFree cash flow is cash from operating activities minus capital expendituresi iGross capital investment excludes expected FirstNet reimbursement in the 1 billion range includes potential vendor financingibrsup2sup iFree cash flow dividend payout ratio is dividends divided by free cash flowi p p bAbout ATampTb p p ATampT Inc a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Finvestorsattcom2Fampesheet51924440ampnewsitemid20190110005801amplanenUSampanchorNYSE3ATampindex3ampmd549cce1b9b14eff050b5d13d1d1753913 relnofollowNYSETa is a diversified global leader in telecommunications media and entertainment and technology It executes in the market under four operating units WarnerMedias HBO Turner and Warner Bros divisions are world leaders in creating premium content operate one of the worlds largest TV and film studios and own a worldclass library of entertainment ATampT Communications provides more than 100 million US consumers with entertainment and communications experiences across TV mobile and broadband services Plus it serves more than 3 million business customers with highspeed highly secure connectivity and smart solutions ATampT Latin America provides payTV services across 11 countries and territories in Latin America and the Caribbean and is the fastest growing wireless provider in Mexico serving consumers and businesses Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video contentand digital advertising through its AppNexus platform p p ATampT products and services are provided or offered by subsidiaries and affiliates of ATampT Inc under the ATampT brand and not by ATampT Inc Additional information is available at aboutattcom 2019 ATampT Intellectual Property All rights reserved ATampT the Globe logo and other marks are trademarks and service marks of ATampT Intellectual Property andor ATampT affiliated companies All other marks contained herein are the property of their respective owners p p bCautionary Language Concerning ForwardLooking Statementsb p p Information set forth in this news release contains financial estimates and other forwardlooking 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 ATampTs filings with the Securities and Exchange Commission ATampT disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise p p This news release may contain certain nonGAAP financial measures Reconciliations between the nonGAAP financial measures and the GAAP financial measures are available on the companys website at a referrerpolicyunsafeurl targetblank hrefhttpsctsbusinesswirecomctCTidsmartlinkampurlhttps3A2F2Finvestorsattcomampesheet51924440ampnewsitemid20190110005801amplanenUSampanchorhttps3A2F2Finvestorsattcomampindex4ampmd5ff0429d3265e0eebbe9bbbcdcad32f72 relnofollowhttpsinvestorsattcoma p p p

SOURCE: BUSINESS WIRE. ©2015 Business Wire

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