Q2 2024 AT&T Inc Earnings Call Transcript
Key Points
- AT&T Inc (T) added 419,000 postpaid phone net adds in Q2 2024, showing growth despite market normalization.
- Mobility EBITDA grew by more than 5% in Q2, driven by over 3% growth in service revenue and 100 basis points of service margin expansion.
- Consumer wireline business delivered over 7% EBITDA growth in Q2, driven by approximately 18% growth in fiber revenues.
- AT&T Inc (T) generated $4.6 billion in free cash flow in Q2, up nearly $400 million year-over-year.
- The company is on track to meet its target of net debt to adjusted EBITDA in the 2.5 times range by the first half of 2025, providing greater financial flexibility.
- Revenues were down slightly in Q2 2024 due to declines in Business Wireline Service revenue and low-margin mobility equipment revenues.
- Adjusted EPS was $0.57 compared to $0.63 in the year-ago quarter, reflecting a decline.
- Business Wireline EBITDA was down 13.9% due to continued industry-wide secular declines in legacy voice services.
- The company expects a one-time payment of $480 million in Q3 related to wireless network transformation, impacting cash flow.
- AT&T Inc (T) faces ongoing pressure from regulatory and competitive environments, impacting its ability to fully capitalize on its investments.
Thank you for standing by. Welcome to AT&T's second-quarter 2024 earnings call. (Operator Instructions) And as a reminder, this conference is being recorded.
I would now like to turn the conference call over to your host, Brett Feldman, Senior Vice President of Finance and Investor Relations. Please go ahead.
Thank you, and good morning, everyone. Welcome to our second quarter call. I'm Brett Feldman, Head of Investor Relations for AT&T. Joining me on the call today are John Stankey, our CEO; and Pascal Desroches, our CFO.
Before we begin, I need to call your attention to our Safe Harbor statement. It says that some of our comments today may be forward-looking, as such they're subject to risks and uncertainties described in AT&T's SEC filings. Results may differ materially. Additional information as well as our earnings materials are available in the Investor Relations website.
With that, I'll turn the call over to John Stankey. John?
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