T - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to AT&T's Fourth Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference call over to your host, Brett Feldman, Senior Vice President, Finance and Investor Relations. Please go ahead.

Brett Feldman

Thank you, and good morning. quarter fourth our to call. Welcome Head I'm Relations AT&T. Investor Brett Feldman, for of

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

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

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

Relations our as materials are Investor well the as earnings website. information Additional on available

With Stankey. that, I'll John? over the John to turn call

John Stankey

us. XXXX I Investor to would at consolidated the joining or you'll we Thanks, find on full going we Brett. you guidance Analyst Day financial I we aren't hope be achieved line We the better today's year there appreciate than beginning and said December. our the provided of at call. strong, results all surprises in in year. any that We finished like are

in to Before I heartfelt my cover sympathies our extend accomplishments, Southern California. to like everyone I'd

families lives, responders their prayers and in modern with thoughts apparent. and for the the wildfires In destructive devastation. the U.S. keeping to Our deeply importance this communities people history. in customers, becomes like of our these thank all whose impacted And connection to first increasingly most historic moments, teams by homes have commitment of and those I'd face been connected

revenue resonate X.X XG service additions and to we had Now durable continues year, subscriber fiber and phone our million growth staying turning to they our of go-to-market with postpaid net XXXX In strategy performance, our growth. customers team Last as again more delivered another drove about X.X%. are with AT&T. consistent solid Mobility, as year choosing

postpaid subscribers we in on last X in year. for This lead and And lead we or more XX the XXth for industry is for you've to the well. churn expect where straight have added Fiber now impressive AT&T heard phone also million X the fourth straight me before, years. an the winning basis quarters run We've to industry as annual fiber, the a an as remarkable say in We wireless. won time

broadband Internet this It's when validated most fastest best Ookla the clear that with by fiber technology last is speeds. AT&T the just was America's week reliable available. they Fiber alternative named And

strong subscribers AT&T Internet we've ability our our grow quarters now processes for Fiber both Once a quarter manner demonstrated another Following we while for in AT&T experiences simplifying of X Air, consecutive employees. net sustainable and simultaneously broadband adding healthy and valuable achieved and positive by and again, adds. customers to

delivered margin flow results and these the expansion we Investors and cash see efforts growth of our free as the outlined and You Day. we in at Analyst XXXX

will We expect trends these continue.

XG and this focused sustained so in for investment Our the building franchise is long we're This term. durable is a on fueling growth. fiber why

marginal strong cost country. allocation focus capital top to $XX in returns highest approach and network capacity, last on to deliver the on the us the deliberate at capital balanced largest, With we a lowest about years as for converged attractive the Our year, foundation billion putting again industry is in invested we to continue broadband building of to investment come.

communications successful even truly a feel new long-term we U.S. there's and more provide year, and incentives serve. And investment we businesses this Investing to opportunity differentiated build in administration infrastructure. many if the network benefits customers, to Trump AT&T communities is ample tax extending for will the expiring in

result, would XXXX said did we Ultimately, position. what a a And last in we stronger exited competitive as we year. we

these connectivity grow starts fiber to customer an We XXXX, a on things accomplish. of to XG Analyst few with elevated plan from offering customers. with Investor subscribers executing and opportunity and priorities still our services against In have one to compelling a we'll out laid the This experience we We focus at enjoy Day. provider. by both our

focused operating run achieve and billion efficiently. to end In profitable make business by our remain savings through integrating target again In customers more once growing by rate right AI We XXXX. throughout cost runs gaining expect further $X a the this our plus new we the that progress business which XXXX, December, of way, operations. goal on we'll we our established on

XXXX. also our and operations network majority to cost exit wireline realize end We we stacks footprint large to legacy evolve technology by expect the of copper savings our as across the work our of

service we transition This to month, advanced and a the deliberate voice to to legacy selling, important planned capable our services template a process a and and a centers, AT&T establish received and Last utilizing begin discontinue an stop more of modern replacement. was small wire transition to FCC step infrastructure. that communications as a phone approval number first supports

footprint. the modernization next with communications wire selling filings centers few which to infrastructure. the weeks, in accelerate actions will make products stop the about the X,XXX investment and centers, and Within with We to about U.S. forward to look [indiscernible] our in advance stimulate we of detailed legacy policies working X/X of wire FCC across FCC the that is

in front, year again range we the offer to wireless this our $XX On investment able as expanding we anticipate we're the capital invest fiber. in where network, investment billion modernizing

X.Xx adjusted half target the achieve to of to expect net this also our year. EBITDA in of range first in We the debt

of for balance common half broader plan, plan a commence and return also using on shareholders. billion in more additional next an $XX includes returns an expect initial sheet $XX billion-plus strategic opportunities, $XX stock X This in capacity approximately improve than have we the years, to $XX part to our incremental the repurchases. pursue XXXX. to financial flexibility share about of Board-approved tranche of our further that billion deliver this we Under $XX This capital total during shareholder pace billion over in keeps which billion deliver is payments or dividend us to second overall repurchases

briefly customer wrap, you share I how shared December. the the finish before in to the where with on and builds with Now AT&T I I'd guarantee vision we like started,

years, customers want they by past and the around first. to AT&T brand deep knowledge several insights what Over putting we've orient and our pivoted services our using the our

in has how research to Scores about with broadband a establish over our to our AT&T year Promoter customer we preparation, our churn. the Net differentiate important of in the by our satisfaction as a This evidenced overall leadership, taking marketplace After improvements feel to AT&T and step continued improving led wireless and customers low are the platform guarantee. brand

to deals is friendly is or fiber can they deliver a they prompt, and deserve that guarantee service we the customers company offer both connectivity for right to AT&T want promise that and make and short. its things only we'll guarantee the network. our we'll AT&T a wireless first telecommunications they fall depend if on, bold

behind With the no our mind and a AT&T that way that company products is the of guarantee, else customers stands services one in our in have peace doing. industry

both effort. with as converged fiber, we spans company our high-quality wireless contractual service always covering to have. businesses. Our guarantee And truly both is across and enterprise we customers, agreements and It a and consumers small full remain committed providing

proactive feel and This were this control networks, that attract all allows with able because customers. offer internal where loyalty, repay us provide promise operating beat scaled a customer we confident AT&T's experience. well. our and an architecture, to we getting network operate We unique posture we can and right as new for own operations end-to-end XG to the us customers on and to will fiber employees customer compelling that's of that it and guarantee tough focuses We customers and customers to our our

Analyst advance our plan and Investor So place in we shared we have at to summary, in the a clear strategy Day.

and beyond. have We right to people, the goals in and differentiated assets capabilities achieve XXXX our

I'll to With turn Pascal. Pascal? that, it over

Pascal Desroches

Thank you, good John, morning, and everyone.

equipment by as X. closed profitably. we our we're Business financial Fourth continue broadband Let's revenues. This the year revenues up as revenues by as by well service reviewing wireless X% on really summary partly our with largely to Overall, grow a pleased start how quarter out were fourth driven was offset Wireline. quarter nearly decline team in Slide subscribers and

up Wireline. the of with Consumer at the by partially EBITDA $X.XX line below-the-line quarter, primarily and prior Wireline, growth, beginning EPS in net year. Mobility was in we X.X% in Adjusted $X.XX was quarter of the that despite outlined the in Adjusted Business headwinds were as year offset the declines for

flow included Fourth quarter billion billion, from came pretax cash operating at distributions. million activities $X.X free about DIRECTV Fourth $XX.X cash in which quarter billion, $X.X year-over-year. up was about $XXX

distributions all the DIRECTV now within from cash cash fourth operating activities. from quarter, with are Beginning reported

we However, results, as a reported of reminder, cash cash starting with from our will free exclude first from flow. DIRECTV received quarter XXXX all

We with billion we the strong Fourth slightly investment quarter during billion. provided quarter a performance were capital while call. absorbing $X.X the strong $X.X estimate third higher than quarter were impacts financial delivered that our expenditures on of capital

X. at against look a our financial delivered XXXX guidance Slide results let's Now we on take the

our we year, financial full the For achieved all guidance. consolidated

range in We primarily growing the the the X.X% growth expect customer revenue growth in service X% relationships. achieve range Mobility by and profitable

our X%-plus for full of the met growth grew we driven broadband X% XX%. Wireline, year target X.X% Consumer in of fiber to growth growth in range. [indiscernible] compared by expectation revenue the Consolidated nearly of our In revenues

which the Analyst for Investor $X.XX came of at slightly high EPS in range Adjusted better our full provided Day. year is the end $X.XX, the and we at to than $X.XX

we full XXXX, in excluding equity was approximately in $X.XX. plan year in When income adjusted EPS of previously, related shared adjusted we excluding $X.XX DIRECTV, report DIRECTV. As net to to XXXX EPS

$XX our guidance full than the range, flow at of cash coming full $XX with free in to better slightly billion, high our midpoint the billion $XX $XX cash the billion On delivered in flow, to guidance billion with of for investment free Capital $XX year end the approximately was $XX.X year the billion. consistent at billion range. we

report also we excluding DIRECTV. XXXX, In cash free plan to flow

approximately after-tax was comparison, flow $XX.X DIRECTV. cash of free For cash $X.X billion distributions from excluding billion, XXXX

on Slide at our Mobility Now operating let's look results XX.

to and the business EBITDA Mobility year. for results, revenues consecutive Our growing both continues seventh deliver strong

quarter to service We the X.X% adds up revenues subscribers. phone high-value successfully posted were postpaid quarter also we up for add X.X%. the continued XXX,XXX net revenues with as Mobility in

was recent This to EBITDA operating driven up the EBITDA. low result and Fourth growth growth or by driving quarters, to million Similar our of service flow revenues. the on about year-over-year sustained service quarter focus XXX% our revenues churn is of Mobility about by in Mobility in $XXX X.X% through efficiencies.

quarter, ARPU and year, guidance nearly driven largely ARPU the end by fourth high middle of the Mobility targeted in plan year-over-year. up phone growth $XX.XX X% actions grew for from Mobility in postpaid our X.X%. mix. our with is continues the growth range. single-digit For the be to pricing consistent full EBITDA was This

X churn Postpaid in up the the reaching their basis quarter rate Customers fourth level upgrade X.X%. promotions basis return during basis more declined the XXXX. for year, continue of to point to on points quarter, X.XX%, phone end the this expect a and normalized prior device versus was to seasonal the XX a while we

XXXX. with X% that anticipates with phone churn than Mobility business solid we In activity substantially levels. X% a prepaid, wireless and and Similar Cricket healthy will of less to to in EBITDA performance in year X% our in net to the the phone our deliver higher adds our year, in last X% of confident normalization growth And We're of guidance lower. expect higher XXXX the range end churn again was revenues range. service X% continue to overall the market full end further

results, move let's Wireline Consumer XX. which are Now on Slide to

expanding solid Our well strong which our experience our business XXX,XXX superior quarter. increased AT&T during for adds, This as locations highest been AT&T growth Fiber its again at as demand reflects as subscriber network. pace a of by result fiber Wireline we've the durable Fiber served the Consumer net with performance customer delivered fourth ever

we pent-up following Southeast demand also during in third a X-month We the work benefited stoppage quarter. some from believe the

We totaled AT&T and marketplace. in the Internet to well XXX,XXX million perform subscribers for the more added in Internet net full continues year. consumer adds quarter Air than AT&T the X.X Air

help with success subscriber continues declines more adds copper in AT&T broadband the achieve in offset AT&T net combined Internet which XXX,XXX our and total us to Our than quarter. legacy Air Fiber base,

and driven Fiber The plan up ARPU by sequentially pricing in in was trend favorable year-over-year. actions $XX.XX, and growth improved $X.XX XQ was X.X% mix. ARPU fiber

expect we driven the multiyear Fourth revenues growth Investor guidance with grew the growth revenue fiber Day. at XX.X%. In of provided broadband fiber X.X% in revenue quarter Analyst mid-teens, and consistent which our is XXXX, by we

year, and full legacy growth Wireline Consumer This guidance ongoing transition driven single-digit by for from exceeded full in the for X.X% year grew service was our for revenues to quarter our fiber our network. over high-margin range. high growth the EBITDA the providing by away and XX% in mid- copper which

XXXX to dynamics EBITDA double-digit expect We Consumer Wireline high drive single in these to growth continue and to the in range. low

add also returns investment converged while more Mobility business And basis, benefiting our our a as it's standalone fiber we delivering customers. is strong on

Our fiber AT&T as these Fiber strong basis XXX prior wireless AT&T provider. X also about XX metrics improved our versus for services points penetration the XG households AT&T is their and XX% out of by Both every today reflecting choosing with demand year, together. Fiber

at discussed grow Investor of the we services converged our our Day, penetration our and we long As fiber over term, within and expect Analyst footprint. fiber penetration our to

to XX% industry-wide in turn XX%, Wireline continued primarily In Slide Wireline quarter, down revenues Business let's Now Business declines XX. declined was secular and legacy EBITDA to the services. due on

full For range. Business XX%. in the declines year, latest with teens the EBITDA we in provided This line Wireline guidance declined is the for high

year full the expect we Wireline mid-teens range. decline EBITDA Business to For in XXXX,

in X.X%, service faster service Business revenues. wireless In the Mobility our which our revenues fourth grew quarter, overall Solutions is growth than

with up about X.X year more sequentially, FirstNet continues consistent growth total connections. we a the for category than connections to wireless million ended XXX,XXX and with be us

to XXXX, maintaining were able our balance an capital move strengthen let's XX update strategy. capital Slide investment. we sheet while for on our Now to In allocation industry-leading

For we debt. sequentially. the the noncash related net included foreign-denominated And FX Fourth our by fourth quarter debt full debt $X.X net year, billion. we reduced benefit $X.X $X.X by billion billion net during debt a to reduced quarter,

hedges. impact there there related loss However, an associated was FX offsetting as balance net no sheet to was

free about This our Another item from in cash investing that not is the therefore, distribution was flow. completion net a contributed the to reflected $X.X quarter previously the of from of reduction assets. of restricted cash and did in billion debt in reported impact cash fourth

cash our growth adjusted below adjusted generation, and net EBITDA result ended we with XXXX strong EBITDA to of debt a X.Xx. As

supplier facilities for $XXX financing, of Additionally, more we direct net a year-over-year. vendor offset which and lowered than securitization reduction million

about balance past Over billion. the financing by vendor reduced X years, we've our $X.X

of reduce supplier to direct to and financing ratability improve us flows. vendor our quality efforts Our and the interest cash to have helped expense our and lower

in we and feel good financing year-over-year about on supplier these do and direct XXXX. vendor them not a combined to Given basis reduce efforts, expect our levels materially

Since through We sale continue DIRECTV the middle XX% that year. in in DIRECTV our an TPG this $X.X we year. close agreement, $X.X signing in stake the this cash and additional in to of continue expect receive to expect to transaction XXXX. related cash to expect received to billion includes billion this to from have payments pretax after-tax distributions of this we This billion $X.X

positioned trends, operating balance shareholders. our our free to The our cash and us capital flow in increase to strength of returns our in growth improvement sheet have

share XXXX As share dividend discussed our X.Xx half Analyst in Day, at in range to Investor the the we're we to of expect and maintain EBITDA. our for per and debt adjusted buybacks once to second begin net

capital momentum and allocation combination drive in operating to a capital returns XXXX framework value and positions shareholder and beyond. Our of appreciation AT&T through capital

Now guidance. our let's cover financial XXXX

shared like to key of unchanged in and Our for outlook free your flow from we at few Investor adjusted But you for order drivers help modeling. is the our EPS I'd our and Day. year guidance highlight a guidance with the cash Analyst to

EPS report of pending guidance As the On of free investment. basis, due better. year beginning of in the by driven our first our to adjusted both X% this XXXX plan excluding cash consolidated mentioned and in to or primarily growth metrics disposition anticipates DIRECTV growth our these equity for adjusted outlook flow we quarter, EBITDA in earlier, this

tax amortization and to investment expense of networks, continued effective XX%. fiber slightly Our XG from debt and assumes than $X.XX our expense be around XXXX higher from also balances lower in XXXX $X.XX adjusted rate depreciation interest lower for EPS and to guidance XXXX an in

materially later in planned adjusted to this our XXXX. are benefit not Our EPS starting year repurchases share expected

assets count as X% by annual from we modernization take beyond adjusted at grow or continue through EBITDA service. accumulating out Investor legacy as repurchases. a as ahead, of and share lower as Analyst of wireless well further to It CAGR and depreciation complete for EPS is benefits at share expense network our of also outlook better XXXX to This double-digit our assumes Day. our little planned we XXXX reducing a our driven outlined expect Looking growth adjusted

cash Our Collectively, offset more lower an year capital EBITDA balances, to in lower of cash guidance from fee taxes. of network than XXXX. compared and adjusted payments this increase termination in flow our these anticipated as items as impacts working the lower free debt are for assumes XXXX well interest growth in cash $XX expected billion plus absence XXXX to

Excluding DIRECTV, on law, based This expectation we be expect billion up billion, on comparable continued phaseout a tax from current about the including XXXX $X.X cash taxes XXXX basis. which to bonus is depreciation. is of $X.X

of a flow course that have We to year. cash continue profile also expect free the the ratable our more over will

we flow first Also primarily the typically timing reminder, keep cash incentive and year's free XQ flow. $XXX to compensation seasonally by annual cash a million DIRECTV of last see As in free that mind quarter driven device contributed lower payments in payout.

outlook beyond. the We're financial December. long-term our and operational we and shared Day in We're excited Analyst and about guidance for Investor our the at year reiterating all

We're the Brett, presentation. our now for ready Q&A. that's

Brett Feldman

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

Operator

from question [Operator Today's Instructions] comes first Hodulik with John UBS.

John Hodulik

maybe John, you. regulatory couple a questions for of Great. quick

of see regulatory this filing would that's First you with on the about successful? savings that legacy if there direct come the products, all, 'XX cost are in potentially could that any

sort that's I with that copper a towards of would to terms decommissioning of that And if step steps probably heading infrastructure. one. first this proceed of filing? you is you're the in number How expect think So the successful

of think do that a plan? the could number and you view with on the areas be that through? And reform. chance issue the a of you One, tax you more faster two, that And some accelerate your And 'XX some spending getting or what's that you Would go what mentioned little CapEx. then the on of just are do 'XX? could

John Stankey

we laid cost you is new you X our what in of So objectives detail, Day, going as Analyst the we make years expecting And you gave out that we legacy that's first those a that see savings costs next estimates. we're to key taking to as that discussed in filings, out the over you the understand element should all, as for those foundational we of the are can progress business.

how So things. takes in us guidance going given of expect out you this filing a and of factored those we've would long that. timing you into to break central is those what on office basis not the all exactly here it I'm kind the recognize to per we've

are should what some processes take you think these time that about. is But

go cycles notice We grandfather them. them. have then through to to customers. with We have transition ultimately We

not are footprint days these function So see These business. to in the you're a shift or structure in cost are ultimately, a reshaping things 'XX you to later, our the and XX costs. like what gets us file, by and step of objectives the dramatic starting shift

to those said I How the scale put comments, in have the of is We're going now now with about X,XXX my proceed, a step first as in steps we centers. wire that framework test framework. first

the We build expect to them centers? that when with to do move And do with expeditiously say, and collaboratively to to I work we a do wire through X,XXX process we're is as going commission going possible. what quickly that, as that

an clear the it more investment right policies will, from through are new expectations right fact, right to stimulate technologies. now, finding dialogue kind because them scale of to have the way appropriate these going-forward are in place, administration in occurring is if that's rapidly interested in approaches believe faster the they in and My the

with and tranche we and embrace figure successfully through how we them another that. as that work and out to move And commission through through the take move we X,XXX then intend

part of putting all expected this And down in and when X we place process. started to technologies moving building enable years back we it's and the this of the it. ago how this kind framework So that's path

we would the at a This as receptivity bit think we feel we case. little Day, think of in good, is the kind expected change, of approach go Analyst moved the tailwind of I what of I the the And of I terms to administration through as be kind a that. I mentioned with

has to reform right economy I'm look, party indications what this would set key direction. that driver that from I'm in priorities in control for Washington growth moving believe figure economic one My perspective a hopeful can that the is that out the themselves. will the a be how get tax the of On an side, optimistic Republicans and

of accelerated first part certainly would I the this little I've of we of couple used did about not investment were economy, comparison, policies stimulated were ago. years the accident. as an and we peaking in billion a from investment say my drive they It's time in those place. would $XX

tax reinvestment given along now. had probably get ever of look same I Our I right about investment that a in of down our how do we place that I to answer up fiber the amount at the is, juncture, some bit But don't if accelerate be little at we're back think in that bill is $XX would the far are expect billion first build, capital this yes, go to would latitude the to I I to might that. tweaking strategies.

the some fiber investment and completing go of into And earlier. might plan that

Some that shareholders. be returned may of to

on dime you with think answer We to can't year. with about shared build analyst your a want about conference, fiber million of question, occurs $X the as think if I at a you the when you increments what turn to

million now, move best $X case that $X million, to case, to right So to ramp scenario building XX-month to XX-month and we wanted probably we're if level. worst a that's

go And doing of things start to doing supply it. are of these how do are graceful you chains, increments when gracefully about vendor the things, thinking inappropriate. whipsawing We're way you about kind $X not million that communities,

we after So some fact, into that in scale are, Can get tax that's to going course about cuts have that to year. saw that of million, we'd go decision you the to up to think yourself within a I another $X tangibility the the place. make

Operator

Barden Bank comes question today of next David our America. of And from

David Barden

notion the just to fiber discussed was first that games brings a John, the my of home away mobile guess one games we business. for to topic and you, benefits this I and which on the the returning Day, Analyst

total XX%, of the net among the adds some together? gains adds examining adds. equal gross quarter those how there mobile something probably the pieces value that about in noticing fit was fiber customers for to fourth in in that is quarter the -- XX% and information net I'm Is

coming estate I is could guess This was rain question ] And to was then I Pascal. of is million deal that's -- flow part the the of it And $XX billion? going about part the how we real and [ maybe question contributing $XXX that especially decommission be contributing, the second as knowing the the it's that, future plant, estate real think deals plus? copper Or we do -- cash picture? to this

John Stankey

know the Dave, understand overrotate would if on I don't that I value correctly. question information your I

actually I in call I penetrating. our for at broadband, or would you net not dynamics strategies there perfectly a occur isn't successful penetrate to are the within look we we're what when think whether necessarily what add how timing base, the that typically, at

number, to thinking us. is in. you of we base drive to going when unaddressed installation, the start is customers larger get about that There to want much penetration some which base than of new what is activity helpful on But do the up we individuals

doesn't in in have the strategies get we well that run it Pascal, to want [ through adds so and cash to with And rain flow? dynamic it. in do ] to different associated net it. unaddressed fact the address do that There's base you order

Pascal Desroches

Yes.

going not financing through So from our free flow. the It section running is of be deal [ through will operations -- we're It's ] to it cash accounting transaction. run financing the cash Dave, as or sheet. balance rain for a

when about starts are out, I drivers being with of flow growth. free zoom what You the it EBITDA our XXXX, think expected cash

was associated with Investor out in headwind there fee with O-RAN paying our of $X.X about call We also, billion termination Day, at XXXX, as we it, highlighted effort. a, a modernization associated

tailwind interest the capital. should working other you're some and benefit see is expect you Additionally, to going from

one We other. ended interest major And a be if wouldn't to continue to that the have expense we and capital expect or down, XXXX. factor into I saw year, you the I was would expect the way working way -- our

And really, are driving so dynamics the those it.

Operator

question Michael at our comes Citi. next today And from Rollins

Michael Rollins

could around the and Curious used context a normalization you they and opportunity and looking similar if -- market that, between additional last You healthy around characteristics terms that or the add same net or 'XX is language of at growth AT&T the than within further how guidance? put mix some how activity the levels. wireless year look of volume and different in similar ARPU just

trending other retail just In added subs. the of item. larger And number you a schedule, much one quick

I think it up XXXX? And just become reseller XX.X% I'm significant drove that during service was more quarter-on-quarter. what Mobility a growth does of curious component revenue performance?

John Stankey

So the there's That's said we to tell what it's same as I or language. similar year. would you why last similar

We expect lot further normalization. seeing I don't think different. we're a whole

I said there's what on that bit customers this about we expect a moderation versus durable, be long-term before, necessarily moderation that in the attack on, we we little customers of going As going to think are year gets we that going worked a the seen represent coming a and we've how bit aggregate, counted sustainable to want bucket in But all they number. of that through. a don't

do to gain base. we base to improvement like manage we to customers, going also going we're the the We're both. manage we're everything years, going as some to previous and with do we have volume effectively As can

expect to break manage you those. balance to going how intend not out of each can I'm represents do things. that those But you business, going don't for what know out. to do I how and that X subscription We know we the the in forward. talk never we about to

subscribers. market, can than where base both, the move growing priced and needs And be through it effectively. [indiscernible] of plans of continuum we either we're be value maybe them as through what to out do going there There's to different well or as getting more our differently finding we'll we'll do where pockets

DISH to been they've some What what's but on only to handling a I we was is how That they're not and and indicated accounts. occurring clear that. really what their their how we our the a of we've that. in works you're think, of side and their I We're operating customers think that as contributor contributor a and provider been certainly customer they're decisions the putting seeing significant were on resale migration to beneficiary,

success well are And are generate we've accounts in volume some some that reseller had that then also as contributing now other starting MVNO that. to some to

Operator

Our comes Benjamin Morgan Stanley. next question with from Swinburne

Benjamin Swinburne

ability maybe and I pent-up you the benefited Mobility. the fourth think QX. of for on off to quarter on end size labor at Question the coming one demand fiber us? strikes that Any mentioned some Pascal,

of with And year. 'XX. the fourth offers. a in could like heading had growth own you and ARPU having We've about little bit guys that's converged Doesn't their then the in strong some curious, I'm confidence if our you really impact? ARPU any talk fiber more fiber seen wondering I'm growth just your aggressive get cable in quarter seem competitors

And churn then just a put adds team sort of gross whether and lot inflect maybe Any update Jen 'XX how thinking have that about results. can of on Mobility, positive on their in into initiatives and as you're place. great the

John Stankey

the or think were that's pent-up in were we market decided Ben, through it's what that that -- effectively. for clearly demand were substantial. they the were so going I of in quarter able we after the some dynamic, not work out think what -- was in the certain Southeast fourth number. to just And of XX amount of there there wait, customers saw look, turning days you're I some XXX,XXX that and expecting to we that there's

a then, into is in have the of in you quarter, expect in there's kind in of fiber of sell should dynamic of to a the indication. an of size what now. footprint that our volumes different There's a moving overall forward and I which into. We've trends you don't what suggest seasonality given drive things goes we anything that. right see And that one anything variety course,

bit we as quarter, we adjustments into be to otherwise. So sell will slower tend little first move a into, what seasonality demand disappear. we have And the pent-up still see footprint that than good but to

in I there's market number So Exactly that doing penetrating not see the precisely suggests is, carry how the don't that's don't we're a you anything that, I number to fundamental difference me what should to that can first now in market on it, any we're the that expect quarter. right overall. I into that what know going but trend and put

comes is makes on pricing ARPU and some of I into for growth, continue did step-up price where think that. to versus that to that I work either just customers with you're We you or a get do increase manage in it sense that moving benefit the also get speeds in remove on higher up of portions a I a the to as on. plan quarter we products opportunities our a would cohort through work seeing But effectively there's buy improvements fiber fourth base a what usually through that. the percentage roll we ARPU to adjustments of legacy higher copper dynamic tell base the And indicated, look of that

we're discount And to that's an managing basis, actively as umbrella manage still cable and that, necessarily as more competitive we're X but understand an that you one together price. actively that don't pricing going we because the putting underneath than at lower we feel better is reasons of cable's the on we should continue of when we to a kind currently umbrella. We're we well we're a ARPU to on selling do product do need market in underneath are and why

continues the forward. still to that So case we move as be

want overall going anything do I looking of what pool if I we what be to would I we our the that bit in the growth in getting little at add to But the expect relative side want do given better mobile smaller? is are don't get shared expect I we're Pascal, a on is know segments, you gross yes. to to where there. side to there's share add certain numbers, outsized should What No. on performance

Pascal Desroches

said. I well think all No. Look,

Operator

Peter Our Wolfe Supino next comes Research. at question from

Peter Supino

inflection on immigration. A comment upgrades iPhone average one on could question upgrades, upgrade point And you customer XG your describe into about here. the in evolved if the to aging of on for simply fleet phones and based the postpaid just going get On age and settle middle phone business. of I'm the number wondering innovation. the whether on I'm you you we not in ask approaching maybe an has how as directionally we're that

in business on the potential on your change major then comment you sensitivity phone administration. in the statistics the years next immigration immigration, if postpaid after could of to of changes couple over the And

John Stankey

would Peter, carriers so looking see promotions, any different that there's hold suggest shift. I in different fundamental And would I may on [indiscernible]. shift points that say to desires have we're the don't a see this. heavier data that at anything Sure, in going you in customers' on view of you're if investing

higher to And the you maybe going and say, there's and that choose promotions get, a therefore, rate, the walk well, shift You more richer to may incent away those on. upgrade. customers

seeing we're chose for think we pattern our coming if in the over upgrade, be do how the customers what given pretty an of not are course we're tell when would we of in offers in that, market I quarter. putting percentage the did we're and performing forecast And the market. of what you to out what relative I anything we to might disciplined in

so anytime I something was incentives getting speak. call we into didn't and a on are dynamic course, now, in gift more want I'm future. But fundamental And the those their giving a it they explain make And change based tired, those market. later that to or would fourth that move some I to what offers whether not year, do and somebody were what ultimately to devices shift end to decide this right wanted And anything near opposed that customers' fleet of The in I new up are, expecting in they and higher once rate. not of decision. in see compelling were devices the to in what of at the market that view the with we'll customer will coming as that know customers how can occurred on shift see points what from quarter the that will

the more. insurance of in devices how in phones well. hands the think more things is those upgrade keep pretty shifted customers' of They're perform processes fundamentally place have durable. care People to market. time. don't to of matter period I better There's and fact them know in take The for a longer

bit as I'd market as say, in would of immigration, our you've or to me like as we're share. the maybe more I'd because part relative I the say we be play On of less think effectively should had that to industry, it what heard probably fair sensitive don't a

news of there It well I in aren't impacted. that some guess maybe less market good that distributed space. it, is that quite we'll be effective wouldn't But is if as I just be mean doesn't as to the like the other are. a segment downward in we more trend on folks

is think do this is aggregate, have people having the like of United I to in what in be more and growth element we answer for Now States part good think continue continues I want grow see I services business yes like that country, ours? we policies. think is key because we and economic economy the a living to in to immigration right that all the the And have to invested that to is a in.

wise need that to to months right we'll everybody's We I'm think this want appropriate the what place happens. as smart place, they about the get and of do to understands of to in an go need And kind minds and economy next number do, that and grow, see immigration. what and is prevail, takes that that the way, U.S. hopeful do to that. policymakers to what And interest continue hopefully, we through that's they the they

Operator

comes today Sachs. from Jim question next Goldman our Schneider And at

James Schneider

if the pricing. maybe follow to aggressive need around the it. some the It more John, mean bit are and cable competitive space of I trends expand, you broadband I earlier you sounds on was your like market could your don't clearly, little within competitors comments in the a on getting wondering see that.

you more competition or to for in movers more whether within be But kind the balls sort there of I'm opportunities little bit of a sort existing of into expect just market going non-home jump the sort of XXXX? curious

later. wondering And that's But the see Wireline what in outlook, jump a relatively from top horizon separately, the Business on sooner or rather than muted for that any on from you sort opportunities, of I not otherwise? sort about here connectivity line then AI I'm declines could moderate whether you fiber opportunities outlook, talked you a XXXX. start of no, EBITDA that's different those think if

John Stankey

don't better shift a I mean product. we because win tactics I where as said in a see now it's the have our we broadband We win. right I've before, fiber, in market.

as the Analyst into I And that, build. market tailwind, the XX% where heck I've we -- to it a we're opposed if mentioned built talked Day it's in a as to opposed easier of to sell that lot other have is we're call you and where want think to market starting a that build a XX%, about just

the more are build more markets getting we're distribution and we fiber of metropolitan starts and area. And scale to where our in give the where us in

product, stages So mass get more customers have promoting to with starts latter in mouth they their can buy effective who we of behalf media to our we do on begin they awareness, because case the that word where up show our in own the penetration talk efficiently of their more friends. to

shoppers win. are the product continue people that we're price fixed migrating think things better. winning probably We're And price we are actually competitors on now. towards the have demands they do And being less are to winning shopping I So wireless. as right to would I for because maybe scale our a about. having lower to adjust because But lower we've expect necessarily more talked yes, fundamentally not

performance. is to that. that do think space, and for one play household how we're product very what we performance great know the continue that we'll to scale in. Our consistent the And And and doing in that's well requires I

and there increase will up more need general to pick that waiting as high performance. to consumption they continues customers year-over-year, we ultimately, think more as And fiber be

really about good feel we that. So

you, that, with the did an an when you gave is products. of kind our away Analyst We as recovery we it Day by we in business. driven in And shared at orientation legacy we outlook what expect was, from

trade some did a bad we we in of products of And news news those The of also and a down secular had dollar space. to and is we'll bit fiber good services, share, do The repositioning repositioning well make a really dollar when that for connectivity-based those little you is transitions. lot right they're a is and are now. in. high-bandwidth in products well But which

our we what being fiber and and were included our you on the segment for forecasted thought some ultimately deploying be, would that in we picking it that as in And recovery of up what effective expectations transition.

be go I middle-mile more when becomes critical we do in and we Is moving more that our will expect we effective as expected we infrastructure probably little Yes. expect in be. a that forward? can AI gave Yes, you we that So forecast in something places?

now in on growth board the in that yes. had? of business working we're we've probably have best in Yes. what Did And it across we'll some the historically segments and all quarter fiber see Is stuff right fourth our I some success?

time Yes. that still legacy base, expected? we it our Yes. way which through. continue? a We have Is Should equation mathematical over to that's the that -- have to outrun just work

it's think of So in I shared the we that the to you going terms performance with anything and don't direction change of business.

Pascal Desroches

believe as it -- to opportunity a continue relates other point business, for is One it We to us. great AIA. on we is

If introduced you year. look, part we middle a of product last

so AIA we run as business. to of it room relates for think And have plenty to we

Brett Feldman

business. internal That's our acronym. for And that's AT&T Internet Air

Pascal Desroches

Yes.

Operator

question Sebastiano with from Petti next today comes our JPMorgan. And

Sebastiano Petti

side. I against sticking the with pack Can market, little business guess the broader normalization the of of what the John, from obviously, obviously, in you're wireless out but context wireless you maybe side, of and broke -- revenue growth kind the ability a bit unpack maybe on that consolidated business, service maybe, seeing there? John, you outperformed industry growth

growing. and demand in Day, outline of the that well, you from across evolving. share also be see opportunity, whether like maybe Analyst AT&T the your seems tailwinds a how mix -- as you did corporate that XXXX customers it But there's the you does that At board liable, Fortune business have it in given

AT&T? So and it'd how multiyear that if could be evolving over unpack that you're basis perhaps about you helpful thinking within a

John Stankey

thing, driver, do that's, And for of it's over in industry, the more -- important that. if would and and I we country biggest and there's consume the the driver services. I all tend tell in biggest I our and improving investment in of grow, fact the our businesses mid correlated that we our to think, you how we low the highly Sebastiano, think, the That's to end in market. So success distribution, communication and well effectiveness like good that in time an and is be grows, a they thing business the our economy

that's us of in as as a terms And you, is, shared where our I Day. market. is distribution better in intent I with better segment in structure us But the think through our leverage getting company doing the and when operating that the of Analyst we in went

require are in days. tools you Those change those These XX partners give some that and converting. ways work to prospecting in them of the to things And work with and that don't partnerships. they require be effective right kind you more in

what given question to forecast able our what's an doing Jim's we've that do. to our back part and going what on I segment to ramp, expectations on midstream that. shared ultimately into of you be we're we're And to or improvement And

it I how about we business gets how more be and for to effectively what think down do AT&T, distribute. we in where need that's opportunity. really to effective there's And So to

tailwind, call I work our to that's of don't there's that kind think hard and I that's the that -- know to [indiscernible] want to if kind thing and just that business, that you we have as do. pick And do of we

Operator

Oppenheimer. at final come today Horan And will question Tim our from

Timothy Horan

and operations large a the model seen source. cost, early lower there. pretty been I'm out much cloud open you've has language You've sure in created networks and migrating to DeepSeek your

to and then improve just can us any your support updated thoughts Can you your both your lowering you on the and cloud And maybe expenses? your thing just thoughts on same product just how maybe customers, with to improve relationships overall AI? use infrastructure AI your infrastructure, give using

John Stankey

centers of lot we've to how of been how AI application. look of a has operate dynamics, -- place We've operate a base, actually if tool and you this at a been we've our call our lot I of in we internally. a in think lot customer you -- our able We've picked that service within cost kind what of is already do by benefits done driven terms of up and work

exclusively volumes and the that with you despite that look fact that dropping not like driven we're it. when by efficient handle we're the base able lot individuals supported customer year-over-year, things and our technology, growing, to with with then replacing that needs what a making our And the customer they more it's of we're that's do we're how them at customer And AI. necessarily effective, XX% but call and complementing application technology

do in our a technology with demonstrative on now right operations. new of getting AI. code develop less call, we're improvements internally the generative And and effectiveness. more. what the We've to spending seeing and this code AI previous internally in application able to lot And through used our we're I shared a it it's We're and

earlier expect, my as this CNBC, done. of fully in It's founding as on when very we're comments technology mentioned I [indiscernible] cycle in right now. technology all and the I And a Internet of the early every is going as kind this it's bit big be cycle. said to

by like early the going in in it, should is area to comes wake open can get less this they applications and as they new or facilitate we to as more models. particular very model they and in a locally cloud, of out which to run power to out somebody less consuming there's the figured way says models expect processing to we're capability up using because and domain effectively or And going much fine-tune work we in or opposed benefit one the days a business up when be

that and to a mother lot it. because this. ways minds better I with a of And this going the of lot come money technology necessity is creative up of going for to money, people invention. of we're lot are a nascent awful to have would moments like there's apply on expect those working And an

going it we effectively to stay all of effectiveness. game so disadvantaged on relative we're are use position a sure And structure none us cost to to on have make our to our in competitors

have that doing particular, we doing particular data things I to industries using segments, that we how I to things think particular effective and those of have customers this, would and customer see that as don't places infrastructure, and the base sets handling start the the our in data business to are are customers using market. up unique that have the us, we is lines which and that segments to price unique understanding get better there more which our around we at where like attack those to in get how and

some If goal to a year momentum for like I I executing be would those received were as a about XXXX, of say to had this I time we've result of in things forward. next on moving good business talking

to tuning just use our we've effective to all to I'm effectively it not being do going [indiscernible] we're done AI. today. the capabilities finally, always to about moving in Tim. we're help RF but flows business And forward. that, our dynamically as question, customer things talking ways say at those machine we to our on the And capabilities and things continue wireless innovative based I'd maybe in and on continue today traffic margin, use network movement using great them learning Appreciate and And us the

we to one exactly the going Let we this thing. of of you were do do, you. a say for look at we you what more. all I in if kind intended me January delivered, go what ahead to we XXXX would little We said outlined out for and just of close And And not year. in did bit we what when

over we getting put And towards and business, demonstrated 'XX previous company. what surprise the the a you communications course And that's years, our very hopefully to we as consistent. is of we've energy great our the refocused I think a execution not being and

getting the at upon And we have learning we've and improve more made. we're progress on opportunities to what curve, We're that and still we do. consistent better

recalibrate be and we moment, This to the of same year, year do this this to last you've an We consistency of been that allocation. seen is and to couple that to [indiscernible] in great to have for going drive And the improvement position the we years. opportunity plan and forward business a think hit of important we're to level on we us over continue and capital as that's our in the midpoint invest look an that.

good us. So thank everybody hope a very your in year. you much rest And of the has interest I for

Brett Feldman

Operator, the go and end can ahead you call.

AT&T (T) 27 Jan 252024 Q4 Earnings call transcript