T - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to AT&T's First Quarter 2022 Earnings Call. At this time, all participants are in listen-only mode. [Operator Instructions] Following the presentation, the call will be open for questions. [Operator Instructions] And as a reminder, this conference is being recorded. turn Vice over Relations. President, to Amir our like Senior Rozwadowski, Finance would the to conference host, I and Investor go ahead. Please

Amir Rozwadowski

quarter Thank to Head morning, good Investor call. first of AT&T. you Rozwadowski, I'm for everyone. Relations Amir and our Welcome

today call and John Stankey, the Pascal on our our Desroches, me are Joining CFO. CEO;

It be I of our some need begin, attention forward-looking. we that call your to today says may our Before to Safe Harbor statement. comments

Results may described As filings. such, in risks uncertainties subject materially. they're AT&T's differ to and SEC

Additional materials website. Relations call our I'll information John? the And website. Investor the Stankey. is available are on as always, over turn With earnings to John our on that,

John Stankey

Thanks, players, of beloved promised morning. little like XX the just Two and milestone of deal. Amir one you you. than and we entire all Thanks in this good morning, to Bros. Happy you. you're the the the transaction HBO growth of as joining played last inherits who organization about quarter good time repositioning the and for everyone the in David with team HBO line HBO us a all getting service Discovery Max hope from doing XX like and year-over-year. an the I'd Warner transformation a across a closed leading few with territories. to the of of the million role success nearly globally, enterprise, create lead watch as quarter the with to to of value And media global morning launches in in potential and share a subscribers Discovery a X I truly AT&T months how nearly thank unfold of Amir, and well, global more a this reached which is this we of new in also like in talent, major as WarnerMedia across the of million after stake property, you. and appreciate growth at media completion intellectual XX shareholders promising up as business less are direct-to-consumer own we're of announcing and I'd continued many finish all everyone. drama, and fellow portfolios the new proud WarnerMedia team. best their global New good weeks to excited I seeing belated continue landscape. to Max unparalleled Year We're we ago, our to the we're excited by evidenced the they my entertainment one companies. million this continued well-positioned and who one with the

new let me turn and opportunities ahead and era to So, AT&T us. of the

now we and of achieved can undergoing plan our capitalize we Over We're quarters, able seven We past have Our repositioning for desire to America's me the step consumers focus solutions. accomplish businesses five-fold from to transaction while and will connectivity period, we increase significant networks the we've secular our access that business, results on this data the a the best-in-class in critical of base business. our a The best what all on confidence a asset repositioning give expect on marks to to becoming growing devote financial ubiquitous our goal. in energy structure believe connectivity. now and five-year to right multiyear broadband intensely provider. we be a tailwinds

net consistently to our performance, strategy. consistent in again growth, our Our Mobility record and executing demonstrate against our Mobility, go-to-market expectations and AT&T our levels financial momentum more we're our revenue total. phone great quarter, a launched million business postpaid and our the our It's teams our network continue across fiber higher introductory first continue early quarter first this allow multi-gig that following and portfolio, And growth Fiber discounted additions the growth than last subscriber first This can we're plans with of that then results once decade, consistent subscriber strong we in offset experiencing quarter. and net And adds strong ability them. first most surpassing that the a more value quality consistent the gains quarter Fiber diversified away services thanks This from does straightforward are subscriber seeing velocity improvement channels has build we we with which In In priorities. the in consumers consumers pleased adds than businesses. with XX in and span suggest are well seeing share pricing year's best Fiber, grow. achieved quarter confident the that brought simplified momentum We're disciplined offers to our manner, in disciplined improved we're experience net customer come decade of legacy our continues also locations. available success our improved improving non-fiber they're fiber and overall are in serve noteworthy now with this made losses. pricing. to finding introduction when to to have business customer broadband expansion and broadband I'm given as

step quarters. over a let's seven progress the last taking back, So our review

AT&T and of revenues subscriber phones totals million half nearly During This X.X in million revenues. of nearly our real is and make as more momentum. our now postpaid we've Consumer Wireline added best time, up broadband fast-growing that Fiber, sustainable in two industry than fiber

We and to effectiveness continue emphasize across our efficiency operations. also

of our $X to achieve target As we than we by billion the Analyst at our this run shared month, cost Day year. end rate last of savings $X billion expect more

tangible experience. on to our to network focus efficiencies results driving Our build-out customer from show continues

core told you, growth businesses. we fuel As to savings initially reinvesting we're these in connectivity our

half fall savings However, these line. to the as the start to of this bottom we back year, we to move to expect

delivering on better what quarters and also Our customers the recognizing our success over can past to focus want. attributed seven be on

low Scores to near demonstrate businesses improvements Our year-over-year our positive all across Net churn a Mobility Promoter and and real are Fiber customer are experience levels impact. historically the how and up delivering

its Our Business Wireline unit continues transformation.

rationalize portion pace reselling our year, in time, had business, to transport us onerous planned we business at focus low-margin, this energy a we the third-party accelerate allowing in products and is the we core we'll portfolio move medium significant target enabling on expansion business transport solutions economics. the our and opportunities and services. At The and our the reposition capture market, opportunities connectivity to continue we same where footprint through core as we to greater of fiber to connectivity. have As repeatable growing the small of which

we'll continue our open we opportunities relationships wireless. to in business more customers, have as incremental with up addition, growth In

the these portfolio expect opportunities small- stabilize We grow to Wireline we our businesses help take near-term medium-sized advantage to complementing as with leading connectivity unit, and to enterprise our of Business position. simplify

also powered the allocate now As business, assets, We've place significantly fiber. our is flexibility, improve operated and our a better we're steps much and how we thoughtfully we service of through and future for owned deliberate our in capital. we're we financial invest in as by growth connectivity our being in XG fuel connectivity to taken significant to grow

we the we've With assets $XX debt of beginning transaction, by reduced more of $XX monetized with our transaction, the this in the than of net April. approximately since billion completion XXXX. And WarnerMedia-Discovery billion

position This really moment better As pay in suited to as navigate debt. us this well leaves we're unique we share, time. a we feel down much to in though

securities In loans. to our reduce $XX to prudently gives outstanding fact, maturities the we've proceeds redeem our bank use and near-term debt using WarnerMedia the already and us posture over cash rate also flexibility addressed of to higher paid reduce balance while by improved billion debt some carefully lower of off working the financial in This interest. at prices, evolving the environment to opportunistically

Fortune strong flexibility the capabilities expectations XXX. pursue us allows to offer our for continued and us leverage, cash addition, and future yield that reduce growth provide still of incremental dividend paying This for improved financial top customers sustainable opportunities to near upside an shareholders. generation also durable In while attractive with the

the deliberate couldn't momentum seven could quarters about to more the reposition the chapter I'm proud be and of and the the you not over turn last this with quarter. all attracting has Pascal I thrilled discuss Pascal? are accomplished know our in approach AT&T. our to focused tell, about If business customers. over to the for work next team it of now teams the details I'll and retaining we're generating excited

Pascal Desroches

you, and morning, John, Thank everyone. good

of the on by contributions that results start US that of a included basis. taking our first include a our and on consolidated forward-looking quarter to results important Accordingly, Vrio. financial summary Let's look our quarter It's WarnerMedia at first Slide clear do business a results of provide consolidated Video and reported our quarter business not year's last first reflection our note X.

full on a consolidated of first points cover new financial of $X.XX our On next the quickly for a adjusted the quarter quarter was slide. few AT&T stand-alone me So let our including $X.XX XXXX. to the WarnerMedia, of quarter reviewing in operations compared before a the results key EPS basis,

and and to of In WarnerMedia's benefit the $X.X exclude global separation wholesale by at WarnerMedia HBO of reached NHL quarter higher at Year-over-year by in cash as $XXX proportionate declines global WarnerMedia as at or extent, late HBO cash When HBO investments payments The also to earnings onetime million prior year-over-year were the from last declines were its Max's billion decline our results was spending consolidated a year's Overall and Max plans. share Max's with Communications impressive were impacted flow working adjustments for This into addition business of the certain and in in well sharing operations capital billion $X.X made transaction, primarily flow intangible lesser Free and in in now year-over-year. gain totaling termination and quarter Amazon DIRECTV right of segment. were Video incurred million. was came in to was investments for Max. up content amortization, CNN+ driven million CNN+ advance increased the last year. investments launch, free in from $X.X lower a expanding merger US the reflect $X.X spend, WarnerMedia for cash in up subscriber $XX.X capital quarter. launching $XXX quarter, the advertising new HBO earnings of in agreement in our and AT&T for billion, territories amortization revenues quarter. our costs driven with upon XX X.X% changes. DIRECTV base billion the million the from declines revenues in with increased and entered agreement had third billion. nearly of HBO by the securitization excluding ramp-up an year-over-year. other receivables footprint $XXX Vrio year Cash

for results the at On look are how with a new let's for financials like-for-like the the in our trend. our line Now quarter X. expectations expect for Slide we on year comparative financial our to AT&T basis, standalone

However, Wireline. our investments and in partially our we in gives in wireless up EBITDA our year-over-year recent better peak by video lower our the This that as remain MultiGift EBITDA broadband million be confidence in by from remain We X.X% flattish offset provided shutdown, of will $XX.X year-over-year, Business guidance trajectory. market subscriber trough XG and retained growth, expected QX were driven annual revenue in the and metrics fiber launch as at than billion, by $XXX success-based impact was year-over-year, network the fiber Adjusted adjusted plans. confident costs Day. continued came Analyst were or Revenues conditions wireless declines strong. us offset

to from comparative was $X.XX equity for cash was progressively interest We spending Overall to in billion. EPS $X.X trendline continue and was a of the the first standalone the capital expense. Cash lower of with quarter for the quarter $X.XX to quarter. DIRECTV AT&T higher up billion billion. operations Free income at the investments expect came due $X.X adjusted versus from $X.X through year-over-year year. flow improve in basis, XXXX year-over-year On

flow As expected, several by this was cash factors. quarter affected

deploy the First, higher in of prepare capital XG deployment year. our back fiber investments ramp mid-band we the and half as bands to spectrum

impact. shutdown Second, the XG of absorption

quarter, were $X.X Third, benefits paid compensation from billion DIRECTV last in proceeds the cash securitizations. first which the contribution Fourth, than billion $X.X employee is distributions QX. modestly better increased year's in lower in incentive quarter.

some expect about DIRECTV distribution to $X year, continue We expect for billion from do we the moderation. so

achieve not Given cash impacting free in seasonally quarter guidance that the free to a we to factors you we are range confident the cash repeat, billion provided basis. is our Analyst to many during the for in and for low $XX on QX year and flow free remain a of standalone expected the flow cash Day

cash continue contemplated we full quarters we flow the in free guidance. initiatives. incur forward, impact charges already our Looking been The to transformation as expect of these over to has cash next year our restructuring execute few charges

Diving to The continues level almost on the delivering strategy quarter, turn our years we with relationships to and deeper adds. and continues be phone disciplined slide for customer XXX,XXX a we're go-to-market areas consistent, and our to the market-focused two simple implemented work well, Now, growing XG ago strong fiber. unit seven. had bit subscriber story into and results we performance, business our let's very postpaid straightforward. In momentum net

enhanced said, an As than beginning the reduction marks quarter than This XG of our improving XXX,XXX our network, Consistent practice, an which this customer the Churn with total and our period. this with near decade. base the base more customer as John and being our best excludes simple network treated of also by phones. this offers. impacts thanks in historically We're postpaid a we consistent approach. experience, to our at also of low strength industry part first more growing disciplined our have shutdown driven NPS, is levels, in of remained adjustment of

on in customers. existing teams way Our maintained with focus growing a have right by high-quality and the intake investing strong

March, to in existing unique to incentivizing mentioned XG new the and plans, to which designed are both we're unlimited and greater our rate customers provide current customer's for to value and each As needs focused era shift customers. meet better on

customer adds momentum availability to as footprint. Fiber, the we We from business an technology year customer deployment a expect growth Fiber Fiber underlying and excited here. million we have have our the we AT&T the at access accelerate we're now these and Fiber, levels. about X.X continues Looking AT&T the we to our quarter had would first of our to Where be stepped-up best from and accelerate compared track. X.X expect say share to XXX,XXX ago up base customers, AT&T remain gain understatement. and grow net expand We we win on plans across To already of momentum in million

an Score. see for demand Net continue out a We remains as faster to price. our and AT&T Fiber high seek continues to And Promoter attractive consistently great at fiber a offer speeds strong experience customers as AT&T fiber churn low broadband

segment take operating let's with Now deeper look a on Communications starting at results, X. our slide Mobility

this due a X.X% impact on of to healthy to adjusted due Our through related Mobility costs II material the international factors. were due Analyst the million growing continues Mobility remain Revenues service of Day, year subscriber shutdown to by over impacts growth. record moderate year. stated demand. growth FirstNet comes CAF We for improve business our a these confident momentum. XG and in we see XG X.X%, Consistent was in its negatively to of the revenues $XXX number to and EBITDA up return revenue Overall, revenue expectations EBITDA of X.X% the our one-time trajectory the level absence with year-over-year, without roaming shutdown of declined continue Mobility EBITDA despite impacted course with Impressively, balance service largely on reimbursement. as and service revenues. our comments of Mobility through

as that certain While among the not levels guidance in low postpaid our despite came Both uptick than our record experienced cohorts lower wear-off. phone pandemic a factor demand near does better phone replicating income and remained benefits we QX prepaid modest industry churn in levels results levels anticipated. XXXX, in strength our

for Consumer Business Now and let's to slide our X. turn operating results on Wireline

share to this fiber Our revenues broadband total copper higher we growing X% up we to ARPU broadband and based solid Consumer have expected services, continue our Wireline fiber. fiber are revenue quarter, due Even with declines again was growth growth. as win where from

gross $XX $XX $XX addition with to approximately was range. the ARPU in ARPU intake fiber Our

promotional ARPU We customers pricing improve expect year. overall more simplified to fiber roll continue introduced constructs as we and to off pricing this to on earlier

factors we the with speeds ARPU. multi-gig a move our opportunity addition, Over trajectory to of we even as fiber tiers. to serve higher our expect In new more the time, have in these speed of to launch tailwind customers January, to

locations. to to our We million ability fiber serve customer now build and accelerate XX the also footprint continue have

center on Analyst us you copper-based to Day, our share pivoting As from fiber. heard products plans on

positive help metrics XXXX, our revenues. performance Also this provided operations, can fiber the on we EBITDA make website. in Wireline insight of broadband found IR our by in expect provide our we into As additional growth driven to with you growth Consumer we've pivot, greater trending that materials in be

expected experienced Looking the our portfolio. at some timing Business we in which the Wireline, on execute we the sector first continue passing caused demand in due by impacts to our the than deeper of quarter, of low-margin rationalization delays revenue federal government products budget, to declines. In

demand to expect we this However, year. later rebound

with of near-term base Business service business our allocation mid-single remain Wireline continue a with well in focus allows us down moving XXXX. our fiber portfolio sequential Business segment Wireline as creates XXX,XXX. revenues, by fiber, to growth While XX, services to of XG of integrated growing to Solutions Both XG connectivity comfortable overall as FirstNet our it I'd on well, own solutions. reiterate framework and Business our to wireless rationalization about on like in benefiting Mobility digits operated guidance increase Shifting our X.X% our revenue wireless incremental the We capital and pressure areas, and and perform forward. EBITDA slide also our

the of received certain of transaction, billion in cash debt. WarnerMedia and With the completion existing retention AT&T $XX.X WarnerMedia's

received Bros. now with and have We company. This sheet shares going XX% shareholders greatly representing us forward. X.X simplified Discovery, new a balance framework. Warner our the of AT&T transaction Additionally, provides billion allocation strengthens capital of flexibility financial

to plan and our in XG strategic focus invest areas: we First, Fiber.

the to our range step our billion $XX ability XG by in peak we we established tapering our value to levels shared, improve. the $XX we end to WarnerMedia flexibility other incremental also in AT&T we shareholders. capital increases a net investment expect our for As to the Starting capital financial of XXXX, closer to get range investments We've adjusted of in significant The debt and around as in the times deliver target, This towards expect and XXXX surpass transformation. achieving our begin this billion ways we completion of expect as of EBITDA X.X marks transaction previously goal XXXX. for to investments XXXX. pursue to said, stand-alone

This the $X.XX said, previously in annual of around As and which stocks expect best dividend-yielding very places represents billion, among dividend the share. we US. AT&T deliver dividends to an total common attractive per $X remains

and take free flow generation let's Now, a expected step back the at look our cash from business.

outlined Analyst our free least expect in comfortable expect of paying remaining. cash the cash of we plans. commitments, flow the to feel dividends $XX tapering pace XXXX, Day, As we with generate of of to very cash to After at in at billion $XX by This will And investment. generation billion interest is XXXX. and non-controlling our be range of helped have this capital our why down beyond we capital allocation continue

stronger debt. debt April, our down more paid more the end over with than As flexibility. providing I've position $XX pay net first lot was of the to bank us much quarter, of needs about financial portfolio debt XX% billion our stated, down do not and near-term $XX And in billion have financial In issue a in improved to we're we debt. by and a at we fixed loans,

of to We $XX.X additional also by our near-term redeem maturities. plan bonds an we that May, mid provided billion reducing notice

our higher-rate at to plan of to we redeem the improve proceeds, WarnerMedia opportunistically, the liquidity commercial pay our outstanding using lower of debt to focusing balance on prices. the debt environment by reduce and For paper down

for feel current down for in manner our Q&A. We're adjusted presentation. effective and our net to our ready the EBITDA. maturities really that's in an reach Amir, ability debt we now to confident pay our goal So debt

Amir Rozwadowski

to we're Operator, Pascal. the you, take first Thank question. ready

Operator

Hodulik first John [Operator from question Instructions] will the Our Please of ahead. come UBS. go line of

John Hodulik

if Great, good morning guys. you A on couple of margins, questions could.

in thought. the XXXX, to look range. First, mean on numbers margins XX%, back we a bit of the better little I XX% if were were side, you you consumer maybe generating guys sort than

economic ARPUs, higher on And in guys to then business should can than business we color there. visibility those there? rationalization do change the to portfolio consumer the be the improvement there kind you the in And Given the levels? the margins the headwinds improvement keep of get talking back even ledger, declines the the other the about? of on you mix think year? other segment in of I how have expected, sort continues that in of you and if But do thanks you we and – the weaker for see later much the some side Any this and color the see eventually or guess

John Stankey

margins new we've business parts base mind Good happens investing morning improvements investing is our over do to you? subscribers, John. as we've forward footprint. going thing repositioning business, cost the this add Wireline so had overtime. Fiber improve. to first, we laid fixed in several of expect in in fiber the continue How to are expect out, is What Consumer the and is been -- our relatively in we launching keep And last let's once our – we years, footprint

We are business. but space, look specific attractive. long-term expected margins to feel at haven't we I of in you margins really guided the good about others terms in mean of really this the view generate,

Pascal Desroches

that, will you with kind that activity order of to us that -- deployed. and where think of infrastructure we're fiber asset we've decompose that harder improvements been lower driving into will end market. center question our we to, that we do of it into I to what's right of the side, our have ultimately where you the share if moves you call correlated And our you, be owned have we into deploying operations that to what in infrastructure add program kind accustomed the or in we're reduction we're like base online, that, directly feed those existing where and go things business business highly in tell and And scale is etcetera, and the of the I'd John, structure business the deploying. things the to mid part targeting To transformation all I'll historically allow margin new that on your answer move operated given in to, to of long-live nature in visibility that's the

of that visibility We to good have it. part

as order that we some cases, open In So, market, get channels. in shifting know, terms new to we we're our what up of opportunity. we in deploy market distribution

So, That's product there issue. around going position is our through sales work through an on force, parties. ultimately distribute to well how both execution directly other the we third as own as

I would don't have my of visibility you, is brick I thing you have work up to new, any they control usually can't those wall we they a But perfect there's of that way say, through right do we maybe While over execute? are your these we unexpected not hit time things, to to move area allow it's you I cycles through left issues, question you kinds to work trust terms that that They're think that's how whether quarter run kind matter to. things. through. we a the things and or you progress of you obviously, work things have you can on in And know view that, you nothing and that's kind how That's are And of channels scale new that into of with. a from the over, that would adjust we working two. we or the tell that but

service, my clear segment oftentimes them brand as segment possibly able to in in like about the and about a it moving And owned into shared have leads these AT&T services, go of power in in the operated the direct to wireless new portfolio is well second talk walk it's one the we I to opening customers and other with mentioned Day we the with being as of thing a transaction. incredibly us and Analyst remarks, think parts their on with the in complete a we wireless, I that transport. And received. when into business you discussion fixed walk opportunity the of product I to product, very and that that's

John Hodulik

it. Got

for Thanks Okay. the color.

Amir Rozwadowski

John. if much move to next the Operator, question. very could Thanks we

Operator

from Citi, go Rollins Michael please ahead.

Michael Rollins

morning. good and Thanks

of And phone these churn you you overall the industry in frame evolving do at how versus phone the much you ARPU, market well better can share postpaid look mobile how customers better the as postpaid quarter, when as acquisition? of that As volume cost attribute consider just growth? you the to economics growth the are of

John Stankey

market. we add And seeing, we to that expected year guiding, estimates we're sure. don't tell the shared as were we don't maybe with to from remains the we think say, a And the this others, reports I is going Mike, to strong. We, the quarter. without what's bit in we how our in our as the pretty down clearly, at little so we And were expectations. can still what we we're volumes first, would market. you going terms view we occurring giving information that gross from with Obviously, I have market -- of have I actual of are report pool in look saw on as that to some data, overall consistent and others what we this way believe you backing taper XXXX up you in

approach I far, Analyst not going cost at this they least are chose is incentive of nature that, BOGOs first continue I materialize quarter see that very with with out $X,XXX We've I know, at there thing if don't obviously And through share to of that stayed of given where our seen reports, value. number are in very using this cost that us our approach. cycle us promotional my per about overall I and strategies think now, switch I worse, And very quarter in out stable to our flow scaling subscribers so fourth there versus we Day, across market with juncture. getting expect won't would customer don't material structure after been everybody guess because better, that I in especially lot stable, the quarter. quarter, you and a to overall any we That's fixed I surprised really with but feel being -- And my the at better occurred that be in haven't is last the first point sensing look of and looking a would to And this I the trends on good I see to be in my spread quarters. others market. as in our terms activity That very, from overdrive told of as share ARPUs, data, churn see that our quarters others the that, at they with be we're is puts were chase, they by the despite away better remain headlights previous larger a don't gross similar in of very economics on year, here. are a some and previous somebody all shared we coming is, to consistent that good life on are of quarter going actually strong gains historically very, what And didn't are dynamic than that's year you've means during there. in things. numbers looked. terms the business. shift you remain adds I the on table. overall not could given But the And the throwing what to of surprised what our for we I want our different seen don't flow

these quarters all been quarters ago in economics So, day feel we'll really were we along, as that these they with of comfortable or or customers are that take all we've and now two bringing the than we're no quarter long. ago customers three a ago, right different you sharing

Pascal Desroches

Mike, plan plan. top-tier our our as our reminder, I Elite, is Unlimited also just is a which fastest would add, growing

of So overall that tells in the you the quality wireless happening what's base.

Amir Rozwadowski

Thanks If much Michael. to very we move next operator. question, the can

Operator

Brett Feldman, go Goldman Sachs. Please ahead.

Brett Feldman

And of a sort on two-part Thanks. it's inflation. actually question

have their is week or customer big of minimum competitors facing going be part for their first workforce. a The to were one part announced we they increased retail of workforce earlier this your increasing saw wage and

whether remains John, or year pricing what some that see And up. your what recently were of you. pressures competitive? hoping think And degree labor maybe take workforce? remain if it labor made did on think persist, I you can your price you've to on and leverage might outlook you you think was I second, this in So inflationary inflationary model maybe in anticipated you pressures environment? that look inflationary cost cost market you've you execute comment a seeing elaborate you're and as and terms of then what I was for comments implied confidence how at supply we the you you what sustained the pricing can you gives could if Thank hoping just even I could was your the pricing was, in about on for

John Stankey

go we'd wage I overall pretty the look, a from needs And And in of negotiations that historic X% we is were economy I frankly, the around going that, we've planning are. is individual some no position the that. see question assumed a from that. we as uptick mechanization So we're place of will a pressures you? the several labor and an of as I in some we're we and tell managing business. built of there's we increases. don't in program the because broad they as here year, class no that result addressed. around are compared wage to is wage did think have market other We're There did that we're inflation. it's often good set of consistent structure having a be the previous there for know, right rising we are in is we from the policy wage contracts doing in beyond How question the good services Brett. cases, and they the the would middle is to market I XXXX, dynamics out -- there's say the B work in from the level wage a which and insulated are you and as gets industry extended think cycle into when of Sure, for result somebody amounts the the it's luxury into way now. deliberate with this plan, that wage expected stepped-up wage, we ultimately negotiations built automation revisions overall inflation think wages. with how a a And about segment to to [ph] happy have those Labor a to expectations up, likely contracts. middle benefits middle added The not plan pretty paid. And deal forms And cost we our people stick as what you, call something well. environment. anybody to is land of in not our of not inflation. I current a labor as lot We years news goods in that. the in We're be it late And was across for Those of drive been or previous I we are fast the have planning it. and that, perspective, insulated levels. upticks per some through with job and great bit in we acknowledging in. given that that in folks I'm would the fact investment is wages market It wages

infrastructure many where you lived that a a many, like are some keep in helping related our parts as and some life would that that of deploy wages out they the deployment they at also other is are years. fiber And of all I portion over and inflation of taken of service capitalized deployment point us investment product not networks, business the lid wage people a of of are costs. on for that that look long stays many, cost cost,

So of the especially over that deployment well, long-life not can when the recover go and a up if ultimately small It's the a ultimately obviously, we're of cycle world, cost we'd in uptick. wages. It's to end bit little an of the seeing less we portion like product, prices in of pay the of market. the

inflationary be which pricing, your economy made the a going ago, you inputs. business that the that, over do that my into of dealing But Now or into taking believe we of we look see every And Our customer when to to the move of other a look successful, not be comments we'll running I have board comment is But some different in I if value now, with apply lot and base deal couple -- industry are It's give the it here here is I'm immune that. pricing can that every we place think to to the go. away know a and is options we properly. not situation where can do the go different in to quickly putting base we be seeing that and see And pressures And our fairly customer to wouldn't time, we've that. evaluating I the business the back back weeks announce belief, some tactics this suggest we There's ways cost being I'll with we're to forced go it. moderation and we we're do very appropriate across a judicious how anything to But of want to history lot job levels they don't it's and not sitting in through? as of going to where to States broadly and not in as that, seeing a the this we we remarks. being a can move if my and as right from price we're consumer made we use. we maybe the have position, opening my at I do of approaches price looking on some there's and would United industry be maybe you start at churn earlier, current I from with that. adjustments. service satisfied any that doing can in that we immune do shared I smart wireless are, nor been do have back when product a at And as when and I question

look you everybody we've quarter. We our price means. what went a If to done at in product this structure, this what to I simplified understand fiber want last

broadband. in market the on now pricing right We are not selling out promotional on XX-month

and In equation, in cases, of the It's to effectively able we're reflection volumes a able and the promotional grow, able that the the of broadband manage continue the we're that. in the to $XX overall still it's the understand value be us that higher selling to many and the of where market. stable price or we're opportunity minimum where our including do that there's competitors value us to we're work price business And are our to to a market the have that. value product and the being customer of at market. continuing incredibly of on to to bringing cable an to there's service that stellar for example We smartly do price we'll the us. And with duration relationship doing other in they're were and in well a

Brett Feldman

you. Thank

John Stankey

can to Thanks question? shift very next you much, Brett. Operator

Operator

Please JPMorgan. go Cusick, Phil ahead.

Phil Cusick

first. of Hey, a couple follow-ups

And phone the the of quarter impact your XG into any there adds little more postpaid Was CDMA maybe shutdown second network? dig about quarter. Let's see there on this T-Mobile you in own the shutdown Do impact the what adds? or any quarter? a from first reported

John Stankey

answer the one. on short Phil, no first is the

add, just the As count you service know, we customer adds, a migration to when plan net a isn't – we that's net another XG migration. don't the of

you, numbers. we we've that. be you to And And to so there with as shared Those for restated wouldn't base there any are out our impact see.

things the not proportional we in flow been you get executed today, an in this is I here, last of of share it to this And that one everything but over, in several quarter, this the quarters, as know market able well. there see you quarters or has they out decision don't look that the that we at, it. I best the of to about element touch share with. get shutting there of to seen that, we're just the after the an base. think actually as restatement, disruptive the probably the at of through. look quarters. having T-Mobile be air the think, And it an shutdown been base, any network team seen. Relative they element a last want to we've to this manage. would incredibly some moving interface XG now transitions a network say, new choice of what share I as at the and I that CDMA anything can Sprint you think, to as want When issue going so, the they migrate what has handset can from looking quarter, on flow And been and the customer and I Sprint the number is And of several and over basis market in think -- had think do should customers do what flow saw And the was and I have characteristics XG I from to benefited was to but I've ARPU have time in that for And who not a and they shutdown in a and whether value including make on. And and down previous who to it want subscribers good good I do was they're a pattern network AT&T think, they're evaluating ever

Pascal Desroches

XXX,XXX the Phil, nothing from to point, with migrations. Yes. reference adds do a this just were as the quarter net FirstNet. of XG Again,

Phil Cusick

revenue out I guide Okay. a Well, plus -- for And there if growth. service then you’ve wireless second, service X% can.

anything Is deceleration? is in headwind But this comping think -- that would mean, that a to significant be I issues. should X.X% did we going there a the there's You Thank quarter. you. drive numbers

Pascal Desroches

we business how about plus. X% to guided performing. feel We the good And is really

migration, the really to so you've As team that and is a realm of as next spectrum. the one would some. going the remind we're previously, from With we're in feel management of through we guidance of the I have trying to that you But move heard XG how business conservative end overall going up good said, about full the of John quarter, this impact a executing. put a thing you, on pace three-month ARPU hit to is

Phil Cusick

Pascal. Thanks,

Amir Rozwadowski

next Thanks question. the move we Operator, to very can much. if

Operator

Flannery, Please, Stanley. go ahead. Morgan Simon

Simon Flannery

you very Great. much. a if little I Thank you could C-band wonder bit. about talk

said that you ramping would year. deployments think be I you the later this

lot market. on just what could And momentum you the us chain really to some and updates start in that give when then. written supply in we we've good expect seeing some fixed a If scaling and been there's that wireless you're seen about recently,

get out-of-market be the what you getting C-band to you base the As up, opportunity that do or even DSL opportunities some may your of terms or Thanks. anytime not upgrade think based? of in fiber non-fiber soon

John Stankey

Hi, Simon.

not kind you, two through. have bands can now, That's equipment on told right the we that we once continue. deploying OneTouch the work C-band -- our we will and it and the is touch move tower as different when mid-year. of spectrum between the So happening We're we're for scaling

we can midyear. We start today have get pretty we're that, sure that. on to And a capabilities on pre-work be that do Obviously, we can we that position and to in deploy position. to as right the make ourselves things spending ready, up rapidly are in hit there scale turn

this. it's some the be I OEMs. and you quarter then second POP to in supply And you, aggregate say to industry the in hands, Day. targets on told supply is, the communicated numbers what half good through it don't some least Analyst the that So, actually rapid to globally, we and us that the of there that as seeing are going want conservative here's I'm we're chain, the back occurring. middle in this I'd turnup from through year. the the move I think capital into continue of I think do of it at chip hit know, you're the is we've already as year On say, but to positions where chain the we move of to key going manufacturing the some ever into ramp pressures, for in will I dynamic

American is an providers think in equipment that on a profitable is what market I market keep the North basis. mind incredibly global However, for you of should

it you other market relative to continents, ranking any profitable If continent there. the were out start to is it of most

of into And make a motivation most to constraint, I result services in some first. that, say as you're as so woods, And equipment want this down the parts may likely to the of there's of profitable prioritization a you lower moving if given think you situation of little an other but where if of sure a supply of bit out think a the market you're a forward. that degree we're of don't see I that that your put that, the market manufacturer, I dynamics of result have equipment that the and globe terms availability we're to list

right So, handle a on things. have now, think we good I

Our equipment. vendors within key We've are lot their components look sourcing taking can't if us of We we our just build at do expectations. done not telling they can on meet a diligence word for it. every on second order our We're element.

that that they sometimes up right levels problem. We've can there's end things the and things at bring And chip and like harder confidence in feel now them the estimates at smallest through. it's that causing looked those silliest a

out the fragile and neon coming as continue of are supply the whether we'll gas work that. And happen, be now and But right whatever, crazy so that global things I'm or know, not expecting to a it's you through chains Ukraine to problem.

hit the wireless used fixed where best Look, right particular the hundreds We've fixed I the business already. nail to business that have the be the aggressively pretty you finds side, for particular subscribers is of we thousands up. support it set and it in customer on On segment a parts we solution their head. wireless of think of how business

be applications broadband there to niche think get deployment fixed be be be deployment. the find we watch to of really going better. is that think believe megabits of moving our interesting, Fiber where and robust in their to on we going broadband over don't what the these how do it And network infrastructure where use and don't over more to in government rural clearly going the going years And and particular after there's and going are broadband wireless where wireless to don't offer there fixed to product be fixed there's products, couple part watch a some in significantly over performance call unit. specific. densely -- customers for fixed dense and with fiber be watch do who area But are will base, we that believe But oriented I And market places amount live where of our your in those locations we with sure, is market. Xx through next in to for customers, hard of well market see that's fixed most substantial urban solution. customers of point, the to putting we're the next to build the but areas product more the to populated I can may frankly, do would where we more main mid-band serve suited forward, that traffic there can niche out an the I market our estimates bandwidth what try can in performance dense into continue we opportunity. way believe a of some the we wireless use to and former we're best consumers are with in in customer. very we five there'll up step-up a the solution urban go a we we doing We broader play in be sub a it's wireless think viable the base that's as blanket market I environments, right people our don't service showing they to and some and to get niche what performance fiber fixed to very intend less use needing And it's the product the I where be And will areas we're characteristic living metropolitan ADSL XXX years in customers a our and based and to is I believe copper the use on expect now. believe seeing areas and wireless requirements will numbers be places subsidy areas to in comes a spaces, to time. that And be get we able service broadband growing

Simon Flannery

you. Right. Thank

Amir Rozwadowski

much. very can we Operator, next Thanks move the if to caller.

Operator

America. go Please of David Bank ahead. Barden,

David Barden

see. evolution plan. I describe AT&T's the is, should little I dividend last your one, an dividend a a AT&T, The that think yielder could new what Hey very finally, go-to-market that of share thoughts you Pascal, we few set separation, you expectations around at maybe maybe question was could questions -- questions. for about maybe those have And is you was the AT&T would AT&T, plan if grower? John or previewed A questions. things? i.e., the then of greedy, refresh new it. much wondering think you between you three some the on will AT&T, how higher-level Analyst you share and those be guys. guys. free the Thanks so -- how super -- for Number in be geography much and and Is Day, helpful. old will Max sorts the That depending -- or I AT&T the -- a after go-forward of the the the about Discovery or I'm to work, second business wireless taking new going offering maybe about HBO John, financial Thank WarnerMedia relationship

John Stankey

Dave. Hi,

front three and Pascal of the give offer them to in do jump can anything I'll me try Let and wants. he all end.

dividend moving attention we're out level yield I market, which to think I dividend I'll remain others the at the competitor competitive to to in forward, means meaning the the of want a dividend. pay a relative

be on lot we make could it we returns could make choices do we Board we choose as be have be, we you, we we about the discretionary dividend, point. into told what we the on And we -- start where be choose equity, that the the within XXXX be it think choose on with what is with business where do That could on business. move what the as opportunities to within back -- deployment new choose proposition and competitiveness sheet going we've to evaluate the choices what in the the AT&T past could others to and of to balance want in best of do to a value for growth. at As complete the capital, the there's the stand of where market business we We'll equity relative with portfolio adjust evaluate accordingly. and organic those come

you but possibly we've within capital question, given and whether that about expectation mix brand. the your pay market we'll don't answer be question the what say my I've quarter that relative our to have to kind it the go-to-market look of and that. intend of we're answering is? after, you're in how not how doing stand so driving to of business. is that of ask to question If that's And I two plan, kind When refreshing investing refine we you're the the think attention do grow it we're made necessarily it to deploying comments right any yield, One could I be got could angle to is things every at and we your where the going in about the quarter not dividend the or the competitively

David Barden

plan a little think be that, it. almost that about years upgrade seen now. a a of specifically, would customer, highlight you been interested for and your And customer It's were consistent the I your go-to-market in two on retention, John, I and market's hearing think existing hence you this I new as very positive, the more kind more solid bit think plan. people there hinted And pretty change. –

John Stankey

Well, there'll fine. it that it just I'm probably be working would differently, doesn't working you it's to think doesn't would anymore And a when and because where be to might we change it that's work when we're the year fine. change what kind last be think But not. just tell going a is going great. guessed it's had point And self-defeating. hitting have we And work, that about be not I to of maybe I

down at at our path where juncture. this point But seeing. have will thoughts We love I that on path. next the that need to go, if not go we're we're momentum we

continue I and in more think opportunity what I close I exactly start I what it adjust getting business to wholesale FirstNet doing point stress, have in while see one was has a strong to of consumer that to, you're watching through is even really in our us I the We're we're that know to do opportunity year continue actions doing. new some we're the is growth grow now. going approach on that's you're for over progress we're doing really any great month, our two quarter. time. to that relationships stress, about mix one their as the in want in like not still But us forward opens combined will important in just And space like what been had customers things given small. I to for footprint a week us What set this the we're for that really Admittedly, what to right services, market revenues seeing this we're having would the been we we footprint thinking we're really grow up here. I'm or do I of about moving have future. our And right It now. grow excited And time. between But understand we we're really as the later to in seeing not in our strong focused us. have that up for the on. go-to-market it things means to us. we have think relatively good basis to others

not distribution adding one thing a to it's not strategy. balanced portfolio any this doing, doing that portfolio and to I've feel that So and growth along, up of is sum the need one we're are been a hinging that. you that variety our total there's it's on things we're all of any this And on saying about good understand

Warner continue companies. question important expect still to to relationship Warner relationship Bros. expect I financial going there's that, exclusive. time But with Discovery over will Discovery, expect relationship I last it's to both don't Your on a forward. ultimately be that to that going with we Bros. going be be

flexibility to variety think able with of will be market. in do Warner to I Bros. the a Discovery want things players

understand want that. why think I I do they'd to

right forward. the our there'll that we've expect I is and there in proposition that success relationship had can a the customers given exclusive be retain to value keep think what forward continue to trading be move a make are and things I expect we've able for do that still call of customers in you still portion the to have market AT&T accommodate But want what moving had we'll strong or being we I bit don't as to moving for forward. that a will But add arrangement. and right companies. anything? I fine-tune sure a And it's it captive both do Pascal, that

Pascal Desroches

about point, We've going to only to yield The return part said ourselves overall what And one overtime. thinking it's our the dividends price. I'd question the only are your We're returns dividend mix way optimize we're the generating of growth. looking that's going this, forward, first on say are it. Dave, accountable at hold of a stock growing earnings to shareholders. we And to on

John Stankey

operator much, shift next very Thanks to question. we can the

Operator

Credit Suisse. Mitchelson, Doug go Please ahead.

Doug Mitchelson

much. Thanks so

cash following the to footprint? $XX the you that, to your value the finance? size I HBO John, streaming what of giving reduce And yesterday would both. side of might plus help the piracy, password down piracy, anticipate CapEx cap of, value sort see And market helping I to $X purchased on CapEx there new streamers. I a in billion up, broadband evolves? gain any you're customers how your wanted that we with economics Thank you, given for there media losing be US? financing $XX did of Netflix vendor to could the however it suggests up to paying of just or much spend The then on in clarification. be for would breadth HBO in I a of if Pascal, billion And billion XXXX, guide, follow mean, services think is important regards with sharing media place by vendor should AT&T streaming just Sort

John Stankey

the -- I ago, go three or I observations several if years I And for of industry one but going a may at was made sustainability don't so the subscriptions somehow Doug, good bit of in customer time play don't somewhere these that I the that made the a advocating know, And business. of comments go if element in I when sharing important password of were think long-term there more thing here, was I to back an rampant I SVOD a about that. managing little was products. that was back probably view had a I which be be story jaded business,

we me having that probably customers articles drove product. of bit criticize flexibility, we were We written we want see the a thoughtful jaded thought view more abuse. for don't built rampant the about Max enough where it that. some end thoughtful there the But to I how front sure to at but lot process the little think give making product were of were were of about that a we HBO

go to are of but And customer-sensitive. that enforced in them a been so, there were user in can things and to that we've and into product the I'm has way consistent enforced, obviously we've and has And it. agreement, how of terms the lot built features and conditions with think can't going the not I a details, that they all use

You are have looking I it. in that and rampant call don't limit you are what at we particular about month see to But and anybody tell capabilities actively, the using users massively I how given would technically complaining any abuse. can product features

their approaches that be way you that's going I it's role some I overtime in arms managed. that, right And I so, try think the would around tell the And adjust making that providers' think happen. industry practices and to get don't to the think but broadband I to maybe for to are

on role that. And to don't it's manage making that happen. a work applications in be back the or service product to providers trying of other think I you necessarily can say expect we to to market owner the I that we'd help

adequate think application like experience, tell you there let that part of of your how able from in manage that. maybe I the done go do be I'll and second I software available are reasonably we've question. interest product. pick the own our ahead we feel can the tools to And then the up in Pascal and to you effectively

Pascal Desroches

Hey, about. think here's way I Doug, the

on how but year, financing provided enter provided guidance. cash overall guidance commitments we haven't into specifically payment better We much each will

billion. provided And XXXX for years and $XX both XXXX, so is we

we that be to anything we'd pay year billion this guide. that So would $XX year, in and have do captured next

where have And we sense so should about haven't provided the overall while you guidance, good a should pretty trajectory be.

Doug Mitchelson

right. lot. All Thanks a

John Stankey

And you one for much Doug. very Thank last question time operator.

Operator

LightShed Please ahead. Partners. Piecyk, go Walt

Walt Piecyk

of I hoping unpack comments was you earlier. some made fiber Pascal, the to Thanks.

new of it you year year look competitors John, in was the higher the at what if own the when are XXX think you versus have kind penetration after are the pricing, still conversions of basically that Fiber, mix of two your seen that about terms higher companies about And you seeing and rising we've customers you rate that the one historically quarter, out you other the there? from when from higher about or rolling changing of other growth ARPUs that basically of this these the you taking did secondly, subscriber a third that out then out built And fiber, or I services? than is $XX over can achieve cable. for charging kind You second, guess talked of talked higher course then, year first, you pricing penetration year. think rate

John Stankey

me in Yes. jump can if see if question, I Well, answer your to. let wants Pascal can he and

give of able all, do to AT&T. what you we you that getting new of healthy growth is, you we're mix. the understand we some to would should should information First say to what that But I be is, subscribers disclose you don't a understand

a where think aggregate years numbers in market share market with of I share, our our plan stand. aggregate equal you our broadband share stood. where you which has in is to in We in broadband market our rates know, those previously shared You market business split today substantial an that the the we're and roughly about know after three increase

get time of of period three-year do without growth do impossible mathematically to It's that area, share of to taking the -- can't side other the market that. customers an fiber in to You equivalent from house.

market cash think I the it, and an at expansion way analyst, look And in look a you way that that your in as that shift, picking you we're over it, were three-year so footprint about time you and a you in I my see described career. should conclude flows actually never a think up, share move over shoes, I've you at product if points and period seen I've

And and share move, Now into it. this lot that see we should we're to of money admittedly, we of a getting put infrastructure. kind point expect

share rates Quite easy the as motion competitively you you how And what's our our we decline shared it and And I copper new our our of growth result much of pretty is of isn't. I see to in see a winning for and we our and think happening about we approach. copper you rates as this. in likely customers our performance well And be performing. and of to of opposite, much of suggests aggregate our base. it's So to should report that really are as the fiber we our feel base with ultimate revenues, pen nothing because good they're in we're tamping are we to not fiber how to report how as it accelerating, down you, declining. moving I the pen

better to move our product huge Swiss much I'm marketing. a If much you moving now, just in lot The impact able at move we sustain the And less is If building a we're right it lot lot case. at as forward, a to we get of you where now, the in rate characteristics. more into builds higher on case we've a not improves were and several to we're we're be years neighborhood of of economics we a that, our a that foundation part cheese, and early rates of be by there's big of business the adopters has behind is two is be economics how it. the business case And look variables year reasons to of because us ago in relooking the And The right developed new that your in penetration one. going effective return of business achieving the year tactics accelerate which leverage pen allows much one. a on to the dramatically the it can fiber overall one frankly if pace. year, great

that. for is a it. no a I'm another They get the in the pain they're We're And or XX-month split customer. So promotional we what for means more proud customer suggest done customers. really to team that has of the $XX, result we're bad when mark is the customer. They getting going price and Remember, as We're we it time point just hate to their using a thing of the mark. $XX pricing; that's have expectation three going our XX-month that, experience. really rid service, the better And up regard. shouldn't a hate by that's to market not giving we a expect that year of of charging that

getting constant it that They're price, they're the so very going square now is And front straightforward know where see customer clams the pricing They're out in we equipment months. to the XX getting great and step And a on what shows up deal. end. put data. the a in isn't simple, the product. They

Walt Piecyk

much the that John? and growth. high another the Thanks. And mentioned And didn't I it the move helping not to How know I you've traffic from split to QX. shift just that should expect wholesale about investments, DISH. Is guess I guess XXXX? of wireless, linear? do quarter, and looked you I that that started Is to call to of network. revenue very How as play of can ramp? this by if really in connect You it cable, apparently, implies I fight sheer already the of it wholesale early at switch we it just that the XXXX your is -- out over Can that to those to then stages shifts. wholesale DISH component course you're

John Stankey

the has some directly That's And deployment DISH. actually a legacy And of network some bit. the the Walt. their availability do bit to way is ramp debugging a an on I network of little down slowed It on and so information, can and with I function I it's you their from accurate should from reprieve DISH assumption, where a that end about public think this, got it little think the help you're think front that DISH of think aware work that in and properly. T-Mobile

their the of doing network, to in, move that play recently as transition they as, volume they're as arrangement customers combination starts are DISH of as people what well coming drivers those milestone to as to network occurs, announced Those a starts wholesale another that. when move new two customers ramp. think when need I of a around onto those that to things the in off all

So, on that a line, surrogate new capabilities. network be we'll the to trend think watching loading for new customers I understanding of DISH's

Amir Rozwadowski

much, I'll that, it to very John with comments. And Thanks turn over Walt. for some final

John Stankey

you. of briefly Just all really to

to sure promise And should that kind on to that I And of can patience a transition through been through today. really been for little extend I extend to the had down terms going are. out want in a that, First my excited over of I we've I business. forward. And of to of all, of about of of is internally I or to information regard. you the thanks schedules you AT&T that I'm appreciation on for put us working call. as of this bit month appreciation number all know develop, joining and thanks that at my the on as that, we've want we've through you parse so. your going in work what filings, the it all course the know settle lot had here to it's get a I'm puts as And last

and today, much in you being we'll So, for thanks very with again us XX talk days. to

Operator

of today. you AT&T. for conclude conference call that and behalf panel, our for using you today's day. and does participation, thank a we'd Ladies your to for gentlemen, like On thank wonderful Have

disconnect. now may You

AT&T (T) 21 Apr 222022 Q1 Earnings call transcript