AT&T expects 2024 capital investment in the $21-22 billion range as it remains focused on building vital digital infrastructure for both mobile and fiber networks. The company believes it was at “peak capital investment” in 2022 and 2023, and now expects to decrease investments in the year ahead, inclusive of the recently announced deal with Ericsson.
Speaking at the Oppenheimer 4th Annual 5G Summit, Pascal Desroches, chief financial officer of AT&T, provided the following updates:
- AT&T is on track to generate full-year free cash flow of about $16.5 billion, grow adjusted EBITDA by 4%-plus and achieve an adjusted EPS at the higher end of the previously shared $2.35-to-$2.45 range or in the low $2.40’s range.
- AT&T expects to pass 30 million-plus consumer and business fiber locations by the end of 2025.
- Based on returns from fiber coming in better than initial assumptions, AT&T sees an opportunity to potentially pass an incremental 10 to 15 million consumer and business fiber locations within its existing footprint – assuming similar build parameters and a regulatory environment that remains attractive to building infrastructure.
- AT&T remains on track to reduce net debt and to achieve a leverage target of 2.5x net-debt to adjusted EBITDA in the first half of 2025.
- AT&T’s fixed wireless access (FWA) product – AT&T Internet Air – which is now available in parts of 34 locations. The company remains measured in where and how it offers AT&T Internet Air, and as a result, it expects FWA subscriber growth to vary from quarter to quarter.
Source: AT&T
