John Stephens, senior executive vice president and chief financial officer of AT&T Inc.* (NYSE:T), spoke today at the Credit Suisse Communications Conference, where he provided an update to shareholders.
Wireless. AT&T's 5G network covered 120 million people at the end of the first quarter and today covers more than 160 million people in 327 markets. The company expects to reach nationwide 5G coverage this summer.(1)Stephens said AT&T has surpassed 80% completion of its planned FirstNet build. At the end of the first quarter, AT&T had 1.3 million FirstNet subscribers across more than 12,000 agencies.
COVID-19. Stephens said the company is still evaluating the near- and long-term impacts of the Coronavirus pandemic. He said AT&T has limited visibility on the pandemic's impact on the overall economy and how long the effects will continue to be seen. However, Stephens reiterated that the company has confidence in its ability to generate cash given the resiliency of its wireless services, broadband and business connectivity operations.
Financial Strength. Stephens said he expects the company to continue aligning its operations to the new customer demand model, with continued transformation and cost savings allowing it to maintain its commitment to paying a dividend to shareholders, invest in key growth areas of the business -- 5G, fiber and HBO Max -- and reduce debt. For 2020, the company expects with the dividend payout ratio to be in 60's% range for the full year. AT&T recently issued $12.5 billion in near-term debt to refinance debt with 2020 and 2021 maturity dates, which gives the company additional financial flexibility.
(1) Requires a compatible device and plan for 5G and 5G+ connections. Limited AT&T 5G and 5G+ availability. May not be available in your area. For coverage details visit att.com/5Gforyou.
AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands, including: HBO, HBO Max, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim and Turner Classic Movies. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband. Plus, it serves high-speed, highly secure connectivity and smart solutions to nearly 3 million business customers. AT&T Latin America provides pay-TV services across 10 countries and territories in Latin America and the Caribbean and wireless services to consumers and businesses in Mexico, where it is the fastest-growing wireless provider. Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its platform.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. (C) 2020 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200617005825/en/
Fletcher Cook AT&T Inc. Phone: 214-912-8541 Email: email@example.com Daphne Avila AT&T Inc. Phone: (972) 266-3866 Email: firstname.lastname@example.org