Core Insights - The U.S. telecom market is projected to grow at a compound annual growth rate (CAGR) of 6.8% from 2024 to 2029, driven by factors such as 5G adoption, fiber expansion, and increasing mobile data traffic [2] Group 1: AT&T - AT&T is experiencing strong momentum in its communications segment, with service revenues improving due to solid subscriber gains and higher equipment revenues [3] - The company added 288,000 net fiber subscribers and 270,000 Internet Air subscribers in the third quarter, indicating growth in its Consumer Wireline business [3] - AT&T is rapidly expanding its 5G infrastructure, deploying mid-band spectrum from Echo Star across 23,000 cell sites, enhancing download speeds by 80% for mobility and 55% for Internet Air users [4][5] - The integration of AI tools, such as Ask AT&T Workflows, aims to improve operational efficiency and customer service, potentially boosting profitability and cash flow [6] - Despite facing competition from Verizon and T-Mobile, AT&T's strong foundation and focus on customer service position it well for competitive advantage [7] Group 2: Comcast - Comcast focuses on broadband Internet and in-home WiFi, but its revenues from the Residential Connectivity & Platforms segment decreased by 1.5% year over year in the third quarter, primarily due to weaknesses in video and advertising [8] - The company has a robust broadband infrastructure and is rolling out DOCSIS 4.0 technology to deliver multigigabit symmetrical broadband speeds [11] - Comcast is facing increased competition from AT&T and Verizon, which could hinder its growth prospects, especially as AT&T adds significant fiber customers [12] - The Zacks Consensus Estimate indicates a decline in Comcast's 2025 sales by 0.07% year over year, with EPS projected to decline by 3.46% [14] Group 3: Comparative Analysis - Over the past year, AT&T's stock has gained 4.1%, while Comcast's has declined by 31.4% [19] - From a valuation perspective, Comcast appears more attractive with a price/earnings ratio of 6.72 compared to AT&T's 10.79 [20] - Both companies are expanding their network infrastructure, but AT&T's strategic acquisitions and focus on 5G and AI integration suggest a stronger long-term growth potential [23]

AT&T (NYSE:T) 2025 Conference December 09, 2025 08:15 AM ET Company ParticipantsJohn Stankey - Chairman and CEOConference Call ParticipantsJohn Hodulik - AnalystJohn HodulikWe'll get started. I'm John Riley, the Media and Telecom Analyst here at UBS, and I'm pleased to announce our next speaker, John Stankey, the Chairman and CEO of AT&T. John, thanks for being here.John StankeyIt's always good to be here. It's always the mark of the end of the year approaching, so it's kind of a rite of passage. I enjoy it ...

Core Viewpoint - KT Corporation is transitioning into an AICT company, focusing on integrating IT and AI with telecommunications, while AT&T is enhancing its core wireless business and expanding 5G and fiber coverage in the U.S. [2][7] KT Corporation - KT is developing an AI lineup anchored by its proprietary Mi:dm2.0 large language model, with early contract wins from government and water resource sectors [2] - The company has partnered with Microsoft to integrate AI into its services and plans to introduce a tailored AI model by late 2025 [3] - KT's AI IT business revenues increased by 13.8% year over year, and KT Cloud revenues rose by 23% due to data center growth [3] - The company has a stable dividend policy and a KRW 1 trillion share buyback plan, reflecting confidence in future cash flows [4] - Management has committed KRW 1 trillion over five years for cybersecurity, which may pressure near-term profitability [5] - The domestic telecom market is heavily penetrated, limiting organic growth opportunities, and competition from SK Telecom and LG Uplus poses risks [6] AT&T - AT&T is focusing on its core wireless business and expanding its 5G and fiber coverage, with a strategy based on mobile 5G, fixed wireless, and edge computing [7] - The acquisition of mid-band spectrum from EchoStar is expected to enhance 5G performance and reduce capital investment needs [8] - AT&T reported 270,000 net adds for Internet Air, doubling year over year, and over 550,000 new subscribers to advanced broadband services [9] - The company aims to reach over 60 million fiber customer locations by 2030, with significant growth in fiber subscribers [10] - AT&T generated $4.9 billion in free cash flow in Q3 2025 and returned $3.5 billion to shareholders, indicating strong cash flow generation [11] - The wireline division faces persistent losses, with revenues down 7.8% year over year due to competitive pressures [12] Share Performance and Valuation - Over the past month, KT and AT&T shares declined by 1.9% and 9%, respectively [14] - KT's shares are trading at a price/book ratio of 0.75X, lower than AT&T's 1.45X [16] - Analysts have revised earnings estimates downward for KT, while AT&T's estimates remain unchanged [17][19] Consensus Estimates - Current earnings estimates for KT show a downward revision of 3.21% for F1 and 2.53% for F2 [18] - AT&T's earnings estimates have seen a positive revision trend, particularly for Q1 and F2 [19] Investment Outlook - AT&T holds a Zacks Rank of 3 (Hold), while KT Corporation has a rank of 4 (Sell), suggesting AT&T may be a better investment choice at this time [20]

Core Viewpoint - AT&T Inc. demonstrated strong subscriber growth in its wireless and internet divisions, but investor concerns regarding its profit strategy and earnings quality overshadowed these positive results [1] Subscriber Growth - AT&T reported impressive third-quarter results, exceeding consensus expectations for postpaid phone, fiber, and Internet Air subscriber additions [2][3] - The company is positioned to continue growth by expanding its 5G network and increasing prices for existing customers [1][4] Financial Performance - AT&T surpassed estimates for key financial metrics and reiterated its guidance for 2025 and beyond [3] - Analyst Michael J. Funk projected fiscal 2025 sales of $124.82 billion and EPS of $2.07 [5] Market Reaction - The market reacted negatively due to management's commentary suggesting a reduced focus on Average Revenue Per User (ARPU) and a perception that the earnings beat was of "lower quality" due to lower depreciation guidance [3] Analyst Insights - Analyst Funk maintained a Buy rating on AT&T with a price forecast of $34, arguing that the recent stock sell-off misinterpreted the strong quarter [2] - Funk emphasized that the market is underestimating AT&T's core strengths and growth drivers, particularly in underpenetrated markets [4] Future Outlook - There is a significant opportunity for AT&T to add high-value subscribers and gain market share through service bundling and mid-band 5G spectrum rollout [4] - The company has a clear path to increase prices for its existing wireless and home internet customers [4]

Core Insights - AT&T's growth strategy focuses on acquiring high-value customers who utilize both wireless and fiber services, resulting in significant subscriber growth in the third quarter [1][8] Financial Performance - Earnings per share exceeded analyst expectations, while revenue slightly fell short; however, the company maintained its full-year guidance despite economic challenges [2] - Mobility service revenue is projected to grow by at least 3% for the year, with consumer fiber revenue expected to increase by a mid-to-high-teens percentage, and free cash flow anticipated to exceed $16 billion [2] Subscriber Growth - AT&T added 405,000 net postpaid phone subscribers in the third quarter, surpassing the 401,000 added in the previous quarter [4] - The company gained 288,000 net fiber subscribers, bringing the total to 10.1 million, and 270,000 subscribers for Internet Air, a 5G-powered service [5] Converged Customers - There are now 4.2 million customers using both AT&T's wireless and fiber services, representing 41.5% of the fiber install base, an increase from 39.7% in the same quarter last year [6] Cash Flow and Future Projections - Free cash flow for the quarter was $4.9 billion, up from $4.6 billion year-over-year, with expectations of at least $16 billion for the full year and projections of over $18 billion in 2026 and $19 billion in 2027 [7]

Financial Performance - AT&T's Q2 revenue increased by 3.4% to $30.8 billion, exceeding market expectations of $30.4 billion [1] - Adjusted earnings per share were $0.54, better than the anticipated $0.52 [1] - Free cash flow for the quarter was reported at $4.4 billion [1] Customer Growth - The company added 401,000 mobile phone users, surpassing the market expectation of 301,000 [1] - AT&T's "Internet Air" fixed wireless service gained 203,000 new customers, exceeding the forecast of 169,000 [1] - The company also added 243,000 fiber users [1] Strategic Initiatives - AT&T launched a new "customer assurance" policy aimed at expanding market share by providing stable network services and quality customer service [1] - The company plans to invest $3.5 billion of the expected tax savings from the tax and spending bill into fiber network construction, targeting 4 million new access points annually by the end of 2026 [2] - AT&T is acquiring Lumen Technologies' consumer fiber division to enhance its wired network coverage [2] Updated Guidance - The company raised its full-year guidance for mobile service revenue and profit, as well as capital expenditure expectations, while lowering the growth forecast for fiber business revenue [2] - AT&T maintains its adjusted earnings per share forecast of $1.97 to $2.07 [2] - The company plans to repurchase $4 billion in stock, having already repurchased $1.3 billion [2] Market Position - AT&T is the second of the three major U.S. telecom companies to report Q2 results, with T-Mobile US set to report later [2] - Despite a 3.8% pre-market drop, AT&T's stock has risen over 20% year-to-date, outperforming the S&P 500 and its telecom competitors [2]