Thursday, September 20, 2018
 
 
Company News: Page (1) of 1 - 09/12/18 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook
Randall Stephenson Provides AT&T Update at Goldman Sachs Communacopia Conference
  By PR Newswire

DALLAS, Sept. 12, 2018 /PRNewswire/ --Randall Stephenson, AT&T* Inc.chairman and chief executive officer, spoke today at the 27th annual Goldman Sachs Communacopia Conference. Stephenson provided updates on the company's third-quarter performance and plans for deleveraging following the June 2018 acquisition of Time Warner.

Capital Allocation and Deleveraging
Stephenson said the company continues to expect its net-debt-to-adjusted EBITDA ratio to be in the 2.5x range by the end of 2019. Stephenson said AT&T will use cash after dividend payments to pay down debt. For full-year 2018, AT&T expects to deliver more than $21 billion in free cash flow and begin 2019 with a baseline of $25 billion in FCF. Stephenson said there is upside potential for 2019 free cash flow as it completes its Mexico wireless build and DIRECTV fiber build merger commitment and with expected growth from WarnerMedia. The company continues to expect to return to historical debt levels by the end of 2022. The company also expects to maintain strong dividend coverage with a dividend-to-free-cash-flow ratio in the low 60 percent range.

Business Update
Stephenson said the company continues to see positive trends in its wireless business. Wireless service revenues were up on a comparable basis in the second quarter of 2018, and Stephenson said in the third quarter to date, wireless service revenues are up more than 2% year over year on a comparable basis. The company also expects positive postpaid phone net adds for the full year.



In AT&T's Entertainment Group, Stephenson said the company's newest video offering, WatchTV, is profitable and that the company has seen a better-than-expected customer reaction to a recent price increase in the company's over-the-top video service DIRECTV NOW. Stephenson also said that broadband trends are positive with increased uptake of fiber-based services driving increases in average revenues per subscriber. Based on these trends, Stephenson said while he expects continued pressure on Entertainment Group EBITDA in the second half of 2018, he expressed confidence that 2019 EBITDA would be flat compared with 2018 levels.

Time Warner Acquisition
AT&T is moving forward with integration of WarnerMedia following its acquisition of Time Warner in June 2018. AT&T expects to realize $1.5 billion in cost synergies and $1 billion in revenue synergies from the Time Warner acquisition within the next 3 years.

Following the acquisition, AT&T is positioned as a modern media company with four key elements: ownership of premium content; nearly 300 million direct-to-consumer (D2C) relationships1; technology to deliver addressable advertising; and high-speed networks. Stephenson said that AT&T's wireless network was recently recognized as the No. 1 network by research firm Global Wireless Solutions (GWS). GWS reported that AT&T had the best video streaming quality, quickest loading times and best voice retainability.

Wireless and 5G
Stephenson said AT&T is well positioned in the wireless market with strong growth in prepaid and a high-end customer base that understands the company's value proposition in postpaid. He said that the ability to combine wireless service with additional services like premium video has contributed to postpaid phone additions with growth in revenues per user and margins. He indicated he also sees growth opportunities as the company builds out its FirstNet network and expands its services to the first responder community.

Stephenson noted that the United States is leading the world in the transition to 5G. AT&T continues to expect to be the first U.S. company to launch standards-based mobile 5G service. The company plans to launch in parts of 12 cities by the end of 2018 and expand to 19 cities in early 2019.

The company is also rolling out its 5G Evolution network using advanced 4G LTE technologies to deliver higher speeds up to 400 Mbps peak theoretical speeds on its 4G network. The company plans to cover 175 million people in more than 400 markets with its 5G Evolution technology by the first quarter of 2019.

Advertising Opportunity
Stephenson said that the combination of a robust advertising inventory, consumer insights from the company's D2C relationships and the technology platform of recently acquired AppNexus gives him confidence in AT&T's ability to grow its advertising business. Over the next 12-18 months the company plans to build a platform that will combine its advertising inventory with anonymized customer data. Stephenson also noted that AT&T will ensure its privacy policies are transparent for its customers.

Net Neutrality and Privacy
Stephenson concluded his remarks with a request that Congress act on two issues important to the United States and to businesses: net neutrality and customer privacy. Stephenson said the need for legislation at the federal level is required to codify how companies should approach both issues to avoid a patchwork of inconsistent state-level legislation and continued uncertainty that has come with administration changes. Without such legislation, Stephenson said investment could become restrained.

*About AT&T
AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia's HBO, Turner and Warner Bros. divisions are world leaders in creating premium content, operate the world's largest TV and film studio, and own a world-class library of entertainment. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband services. Plus, it serves more than 3 million business customers with high-speed, highly secure connectivity and smart solutions. AT&T Latin America provides pay-TV 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. AT&T ad and analytics provides marketers with innovative, targeted, data-driven advertising solutions around premium video content.

AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. 2018 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking 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 AT&T's filings with the U.S. Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com.

1 Represents cumulative 170 million video-capable D2C relationships across the following services: Postpaid, prepaid and reseller wireless; US and DTV LatAm pay-TV, including DIRECTV NOW; HBO NOW; Mexico wireless; and US consumer broadband as well as 130 million unique visitors to CNN.com and Bleacher Report.

AT&T Inc.  (PRNewsFoto/AT&T Inc.) (PRNewsfoto/AT&T Inc.)

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/randall-stephenson-provides-att-update-at-goldman-sachs-communacopia-conference-300711801.html

SOURCE AT&T Inc.

Copyright 2014 PR Newswire. All Rights Reserved


Page: 1


 



[ServletException in:/common/ads/links.jsp] The absolute uri: http://java.sun.com/jstl/core cannot be resolved in either web.xml or the jar files deployed with this application'

About Digital Facility - Contact Us - Advertise With Us - Privacy Guidelines