AT&T(US:T)2025-04-23 15:22Financial Data and Key Metrics Changes - In Q1 2025, total revenues increased by 2%, service revenues rose by 1.2%, and adjusted EBITDA grew by 4.4% [23] - Adjusted EPS was $0.51, up $0.03 from the previous year, excluding DIRECTV [24] - Free cash flow for Q1 was $3.1 billion, an increase of over $350 million year-over-year [25] Business Line Data and Key Metrics Changes - Mobility revenues increased by 4.7% year-over-year, with service revenues up by 4.1% [26] - The mobility segment saw 324,000 postpaid phone net adds, with postpaid phone ARPU growing by 1.8% year-over-year [27][30] - Consumer wireline revenue grew by 5.1%, driven by a 19% increase in fiber revenue [35] Market Data and Key Metrics Changes - The fiber network is expected to reach over 30 million locations by mid-2025, with a long-term goal of over 50 million by 2029 [10] - The company reported 261,000 fiber net adds, up from 252,000 in the same quarter last year [32] - Business wireline revenues declined by approximately 9% year-over-year, primarily due to pressures on legacy services [37] Company Strategy and Development Direction - The company focuses on being the largest converged provider of 5G and fiber, enhancing customer relationships [7] - Plans to commence share repurchases in Q2 2025, with a total authorization of $10 billion [46] - The company aims to maintain a net debt to adjusted EBITDA ratio in the range of 2.5 times [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 financial guidance despite a macro environment with diminished visibility [17] - The company is closely monitoring the impact of potential tariffs on costs and consumer demand [18] - Management highlighted the importance of maintaining flexibility in operations to adapt to changing economic conditions [129] Other Important Information - The company is making significant investments in fiber expansion and network modernization [10] - The first quarter results benefited from vendor settlements that positively impacted operating expenses by approximately $100 million [36] - The company has reduced net debt by about $1 billion, driven by strong free cash flow and asset sales [44] Q&A Session Summary Question: Impact of tariffs and growth environment - Management indicated that if tariffs increase handset costs, they would need to adjust their business model to support customers while maintaining profitability [52][54] - They are actively managing costs across the business, not just in consumer wireline, to adapt to a slower growth environment [58][60] Question: Acquisition talks and inorganic investments - Management refrained from commenting on specific acquisition rumors but remains open to opportunities that enhance shareholder value [67][70] Question: Higher upgrade rates and wireless margins - Management expects elevated upgrade levels in Q2, potentially impacting wireless margins positively [81] - They noted that price increases on legacy plans could lead to higher churn in subsequent quarters [84] Question: Fixed wireless access and broadband share - Management confirmed that network enhancements are expanding opportunities for fixed wireless access, which is expected to drive growth in broadband [90][96] Question: ARPU improvement opportunities - Management plans to continue finding opportunities to improve ARPU through enhanced product offerings and customer value [101][104]