DALLAS (dpa-AFX) - AT&T plans to double the size of its fiber footprint to about 30 million customer locations by year-end 2025, Pascal Desroches, chief financial officer of the company said at the Credit Suisse Communications conference.
Desroches noted that AT&T's network is performing as well as it ever has and that as the company accelerates its deployment of C-band spectrum. It expects to cover 200 million people by the end of 2023, strengthening its ability to deliver even faster average speeds across the country and to densify its network as demand for 5G grows and the use cases for the technology expand.
Desroches expects WarnerMedia's second-quarter results to benefit from positive comparisons to the second quarter of 2020, which represented the worst of the pandemic impacts in that business unit.
He also said that in the second half of the year, he expects WarnerMedia to benefit from improvements in advertising revenues, a return to theaters and run rate benefits from the second-half 2020 restructuring.
He also expressed confidence in the upcoming planned international launch of HBO Max and in the company's ability to deliver on its guidance of 67 to 70 million HBO Max customers by the end of 2021.
Desroches reiterated the guidance AT&T previously provided for 2022-2024 after the expected close of the pending WarnerMedia-Discovery transaction: Low-single digit revenue CAGR and mid-single digit adjusted EBITDA and adjusted earnings per share CAGR.
The company expects to generate $20 billion plus in free cash flow on an annual basis post-close, with a dividend payout ratio in the 40% to 43% range for a total dividend payout of $8 billion to $9 billion per year.
The company expects to increase capital investment to around $24 billion annually, focused on 5G and fiber.
Copyright RTT News/dpa-AFX
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