DALLAS, Dec. 10, 2019 /CNW/ -- John Stankey,
president and chief operating officer of AT&T Inc.* (NYSE:T),
and CEO, Warner Media LLC, spoke today at the UBS Global TMT
Conference during which he provided an update to shareholders.
Share retirements. Stankey said that AT&T began
retiring shares in the fourth quarter. The company expects these
share retirements will help offset the impact to EPS in the fourth
quarter from HBO Max investments. Stankey also announced that the
company has entered into a $4 billion
accelerated share repurchase agreement to retire about 100 million
shares in the first quarter of 2020.
Cost initiatives. Stankey said that the company is
focused on exceeding its recent typical annual 6% to
8% reduction in network operational costs. Stankey said the company
has set a 2020 target of an additional 4% in cost reductions, or
about $1.5 billion, driven primarily
by lower labor-related costs and corporate overhead.
Capital allocation. In addition to retiring shares,
AT&T plans to continue to invest in both capital and content
while also continuing modest annual dividend growth.
By the end of 2022, AT&T expects to have retired 100% of the
debt it incurred to fund the acquisition of Time Warner, with plans
to reach a net debt-to-adjusted EBITDA ratio in the 2.0x to 2.25x
range, which it believes should result in an upgrade to its debt
ratings.
AT&T will also continue to review its portfolio to achieve
its asset monetization target of $5
billion to $10 billion in
2020. Potential sales include AT&T's regional sports networks,
additional real estate transactions and additional tower sales. The
company expects the previously announced monetization of its stake
in Central European Media and the sale of its Puerto Rico wireless operations to close by
the middle of 2020. AT&T also recently raised about
$1.2 billion from a preferred equity
offering.
2019 Commitments. Stankey said the company expects to
deliver on all of its 2019 commitments.
*About AT&T
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, Warner Bros., TNT, TBS, truTV,
CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim,
Turner Classic Movies and others. AT&T Communications provides
more than 100 million U.S. consumers with entertainment and
communications experiences across TV, mobile and broadband
services. Plus, it serves nearly 3 million business customers with
high-speed, highly secure connectivity and smart solutions.
AT&T Latin America provides pay-TV services across 11 countries
and territories in Latin America
and the Caribbean, and is the
fastest growing wireless provider in Mexico, serving consumers and businesses.
Xandr provides marketers with innovative and relevant advertising
solutions for consumers around premium video content and
digital advertising through its AppNexus 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. © 2019 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 original content to download
multimedia:http://www.prnewswire.com/news-releases/att-president-and-coo-john-stankey-updates-shareholders-300972843.html
SOURCE AT&T Inc.