Dallas, September 08, 2022–(BUSINESS WIRE)–Pascal Desroches, Senior Executive Vice President and Chief Financial Officer, AT&T* Inc. ,
Desroches reiterated that AT&T continues to take a disciplined and returns-focused approach to growth and investment and made the following points:
The company continues to engage customers in its strategic focus areas of 5G and fiber. Overall industry postpaid phone volume remains healthy, and AT&T has seen solid demand with continued low postpaid phone churn. In addition, AT&T’s consistent, disciplined, and simple-to-market approach continues to attract high-value customers. Desroches indicated that the effects of recent pricing action on churn are within AT&T’s expected range and the company expects that price change to change in the back half of the year.
AT&T continues to expand its fiber footprint and has the ability to serve 18 million customer locations in more than 100 metro areas with AT&T Fiber. Desroches shared that he is pleased with the increasing penetration rates for new fiber manufacturing. As AT&T expands into new markets, the company has seen first-year penetration rates nearly twice as high as historical norms.
Desroches noted that AT&T does not see any material incremental changes in its cash collection cycles, which are within the company’s expectations and largely in line with normal pre-pandemic levels.
While the current macroeconomic environment has reduced visibility into next year’s economic trends, Desroches reiterated expectations for better cash conversion in 2023 than in 2022. Factors driving the company’s outlook for improved cash conversion include expectations for improved service revenue levels from 2023 — benefiting from both a larger customer base and higher ARPU — lower interest costs and continuous change savings.
Improved cash conversion expectations from this year’s $14 billion of free cash flow guidance provide more than enough financial flexibility to meet AT&T’s financial obligations — including its annual dividend commitment of $8 billion, or $1.11 per share. Common stock is included – even after the company has been factored. above historical capital investment levels.
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Caution language with respect to forward-looking statements
The information in this news release includes financial projections and other forward-looking statements that are subject to risks and uncertainties, and actual results could differ materially. A discussion of factors that could affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise the statements contained in this news release based on new information or otherwise.
This news release may include 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.
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