At an investor meeting in New York, AT&T updated its financial guidance for 2019 following its acquisition of Time Warner, now known as WarnerMedia.
2019 Financial Guidance
- Free cash flow in the $26 billion range with a solid dividend payout ratio — in the high 50% range (Free cash flow is cash from operating activities minus capital expenditures. Free cash flow dividend payout ratio is dividends divided by free cash flow.)
- Net-debt-to-adjusted-EBITDA ratio in the 2.5x range at year-end
- Gross capital investment in the $23 billion range (excludes expected FirstNet reimbursement in the $1 billion range; includes potential vendor financing)
- Adjusted EPS growth percentage in the low single digits
“We are well positioned for success as the lines between entertainment and communications continue to blur,” said Randall Stephenson, AT&T chairman and CEO. “If you’re a media company, you can no longer rely exclusively on wholesale distribution models. You must develop a direct relationship with your viewers. And if you’re a communications company, you can no longer rely exclusively on oversized bundles of content.”
