AT&T Inc. (T) Q4 2023 Earnings Call Transcript Summary

By / / AT&T

The following is a summary of the AT&T Inc. (T) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • AT&T finished Q4 2023 with improved results, including annual free cash flow growth.
  • Reported over 1.7 million postpaid phone net additions for 2023 and a base increase of more than 10% to over 71.2 million subscribers.
  • Annual wireless service revenues increased by more than $7.5 billion and mobility EBITDA grew by approximately $4 billion.
  • Expanded fiber revenues to over $6.2 billion in 2023 with 1.1 million fiber net customers.
  • Full year free cash flow was higher than expected at $16.8 billion.
  • Reduced vendor financing obligations by $3.3 billion in 2023 and achieved a year-end net debt to adjusted EBITDA ratio of under 3 times.
  • Quarterly revenue growth was at 2.2%, while full-year growth was at 1.4%.
  • Adjusted EBITDA and EPS for the quarter grew by 3.2% and fell by 11.5% respectively. Notably, full-year cash flow increased by 19% YoY.
  • Mobility business and consumer wireline saw subscriber increases while business wireline saw a decrease in EBITDA.

Business Progress:

  • Invested in 5G and fiber networks, now serving over 210 million people with a mid-band 5G network.
  • The fiber network now passes over 26 million locations, from 18 million previously.
  • Achieved over 1 million AT&T fiber net customer adds annually for six consecutive years.
  • On track to surpass target of 30 million+ fiber location by the end of 2025.
  • Achieved cost savings target of over $6 billion ahead of schedule with a new target of an extra $2 billion+ in run rate cost savings by mid-2026.
  • Investments in networks have led to a 30% increase in usage per year.
  • Plans to leverage fixed wireless assets more in the coming year and transform the business wireline side.
  • Expectation of growth in both mobility and broadband revenues for 2024 with a projection for growing adjusted EPS in 2025.
  • Capital investments for 2024 projected to be in the range of $21 billion to $22 billion.
  • AT&T anticipates delivering free cash flow in the range of $17 billion to $18 billion in 2024.
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