Q3 2024 AT&T Inc Earnings Call Transcript
Key Points
- AT&T Inc (T) reported strong growth in its mobility business, with a 6% increase in EBITDA, positioning it well for the fourth quarter.
- The company added 403,000 postpaid phone net adds in the third quarter, demonstrating solid subscriber growth.
- AT&T Inc (T) achieved positive total broadband subscriber net adds for the fifth consecutive quarter, despite challenges such as a work stoppage and hurricanes.
- The company continues to lead in fiber, with more than 200,000 AT&T Fiber net adds for 19 consecutive quarters, driven by strong customer demand.
- AT&T Inc (T) is successfully reducing its net debt and increasing operating leverage, with a target to achieve a net debt to adjusted EBITDA ratio in the 2.5 times range by the first half of next year.
- Revenues were slightly down due to declines in business wireline service revenues and low-margin mobility equipment revenues.
- The business wireline segment continues to face challenges, with a 20% decline in EBITDA due to secular declines in legacy voice services.
- Adjusted EPS decreased to $0.60 from $0.64 in the year-ago quarter, impacted by various headwinds.
- The company faced a $4.4 billion noncash goodwill impairment charge for its business wireline unit.
- AT&T Inc (T) anticipates higher capital investment in the fourth quarter, which may impact free cash flow.
Thank you for standing by. Welcome to AT&T's Third Quarter 2024 Earnings Call. (Operator Instructions) And as a reminder, this conference is being recorded.
I would like to turn the conference over to our host, Brett Feldman, Senior Vice President of Finance and Investor Relations. Please go ahead.
Thank you, and good morning. Welcome to our third 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. I said 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 on the Investor Relations website.
With that, I'll turn the call over to John Stankey. John?
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