Financial Data and Key Metrics Changes - Total revenues and adjusted EBITDA each grew by 3.5% year over year during the second quarter [16] - Adjusted EPS was $0.54, up approximately 6% from $0.51 the prior year [16] - Second quarter free cash flow was $4.4 billion, an increase from $4.0 billion the prior year [16] - Capital investment was $5.1 billion, showing modest year-over-year growth [16] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 3.5% with EBITDA growth of 3.2% year over year [18] - The company added 401,000 postpaid phone customers in the second quarter, exceeding expectations [18] - Consumer Wireline revenue grew by 5.8% year over year, driven by approximately 19% growth in fiber revenue [22] - Fiber customer additions were 243,000 in the second quarter, with a convergence rate of 40.9% for fiber and 5G services [23] Market Data and Key Metrics Changes - The company added 243,000 fiber subscribers and over 200,000 Internet Air subscribers, marking a significant increase in broadband service adoption [7][24] - The mobility subscriber growth is increasingly driven by customers taking both wireless and broadband services [19] - The company expects higher Internet Air net additions in the second half of the year compared to the first half [24] Company Strategy and Development Direction - The company aims to invest in next-generation networks, planning to accelerate fiber deployment to 4 million new locations per year by the end of 2026 [10] - The strategy focuses on becoming the best connectivity provider in America, emphasizing customer-first initiatives and advanced technology investments [4][5] - The company is transitioning away from legacy copper infrastructure, with plans to discontinue service across approximately 10% of wire centers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year consolidated financial guidance for 2025, citing steady growth in service revenues and free cash flow [5] - The operating environment is expected to remain competitive, with management planning for a more active second half of the year [40][72] - Management highlighted strong policy tailwinds for investment, noting unprecedented support for organic growth in the telecommunications sector [88] Other Important Information - The company plans to contribute $1.5 billion to its pension plan by the end of next year, enhancing the plan's funded status [12] - The company expects to realize between $6.5 billion and $8 billion in cash tax savings from 2025 through 2027 due to recent tax legislation [31] - The company is evaluating options for allocating capital, including strategic investments and share repurchases [34] Q&A Session Summary Question: Wireless churn and its impact - Management acknowledged the 17 basis point increase in phone churn and discussed expectations for a competitive environment in the second half of the year [38][40] Question: Pricing strategy and spectrum acquisitions - Management indicated that pricing is not the primary issue affecting churn and discussed the potential for spectrum acquisitions in the future [46][51] Question: Fiber build returns and mobility customer quality - Management expressed confidence in the profitability of new fiber builds and the quality of incremental mobility customers, emphasizing the importance of converged services [58][64] Question: EBITDA growth guidance and cost efficiencies - Management noted that while growth-related spending is expected to be lumpy, they anticipate continued operating leverage and margin performance in mobility [70][87] Question: Consumer wireline subscriber expectations - Management expects typical seasonality in fiber net additions and noted strong performance against cable competitors [78][80]

Financial Data and Key Metrics Changes - The company reported a total shareholder return of 44% in the previous year, outperforming the S&P and other major wireless and cable providers [14] - Net debt has been reduced by more than $30 billion since 2020, and the company is now operating within its leverage target of net debt to adjusted EBITDA in the 2.5 times range [13][15] Business Line Data and Key Metrics Changes - The mobility business is growing by attracting high-quality, profitable subscribers, with four out of every ten AT&T fiber households now choosing AT&T wireless [12][24] - The fiber network is now passing 29.5 million locations, showcasing the company's leadership in fiber connectivity [13] Market Data and Key Metrics Changes - The company has invested more capital than any other in U.S. telecommunications infrastructure over the past five years while managing to improve its balance sheet [13][29] Company Strategy and Development Direction - The company is focused on being the best connectivity provider through 5G and fiber, with a strategy that emphasizes growing durable customer relationships, efficiency, and deliberate capital allocation [11][12] - Plans include exiting the majority of copper-based infrastructure by the end of 2029 and modernizing the wireless network to be more open and interoperable [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable growth through economic cycles, emphasizing the critical nature of connectivity services [25] - The company is committed to balancing increased shareholder returns with continued investments in network expansion and modernization [15][30] Other Important Information - The company plans to return over $40 billion to shareholders through stock repurchases and dividends between 2025 and 2027 [15] - The board has combined the roles of chairman and CEO to provide greater agility in governance and execution of the long-term capital allocation plan [32] Q&A Session Summary Question: Why does AT&T have conviction in the strategy presented at the Analyst and Investor Day? - The company believes in the increasing demand for always-on connectivity, the need for dense fiber networks, customer demand for simplicity, and the importance of scale in the industry [20][21] Question: How does AT&T feel about its position compared to peers in the competitive wireless industry? - Management feels well-positioned, noting the ability to attract high-value subscribers and the unique offering of both 5G and fiber services [22][23] Question: What is AT&T's view on the health of the consumer amid potential recession? - The company does not see itself as a leading indicator of discretionary spending but believes it is well-positioned to drive sustainable growth through economic cycles [25] Question: How is AT&T balancing the need to invest for the future while ensuring financial flexibility? - The company has invested heavily in telecommunications infrastructure while managing costs and maintaining a healthy balance sheet [29][30] Question: Why did the board decide to combine the chairman and CEO role? - The combination is seen as beneficial for governance and agility in executing the long-term capital allocation plan [32] Question: How does AT&T plan to serve customers who still rely on the legacy copper network? - The company is committed to modernizing infrastructure while ensuring that no customers are left behind, providing robust access to the internet and essential services [35][36]