The following is a summary of the AT&T Inc. (T) Q1 2024 Earnings Call Transcript:
Financial Performance:
AT&T reported a modest decrease in Q1 revenues due to declines in certain segments like low margin mobility equipment revenues and business wireline revenues.
Their adjusted EBITDA increased by 4.3% due to growth in sectors like mobility, consumer wireline in Mexico, partially offset by business wireline's decline.
Adjusted EPS for Q1 was $0.55, lower than $0.60 year over year due to factors like higher depreciation and non-cash postretirement benefit costs.
AT&T notably increased its free cash flow by $2 billion to a total of $3.1 billion due to improvements in EBITDA conversion and cash conversion.
AT&T reduced its capital expenditures by $1.8 billion compared to the prior year, spending a total of $4.6 billion in Q1.
Business Progress:
In Q1, AT&T added 349,000 postpaid phones and increased the associated ARPU by nearly 1% year over year.
The consumer wireline segment saw an increase in AT&T Net fiber add-ons, growing it by approximately 1.1 million compared to Q1 of the previous year.
Despite the decline in business wireline EBITDA, the company made notable progress with projects such as FirstNet, 5G, and fiber expansion.
The company plans to decrease overall capital investment in 2024 while investing in essential growth areas and reducing vendor and direct supplier financing obligations.
Their strategy includes increasing broadband customers and reducing postpaid phone churn with a commitment to smarter capital return.
More details: AT&T IR
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