AT&T(US:T)2024-01-24 17:12Financial Data and Key Metrics Changes - Revenues increased by 2.2% for Q4 2023 and 1.4% for the full year, driven by wireless service revenue, broadband revenues, and growth in Mexico, partially offset by a decline in business wireline [18][19] - Adjusted EBITDA rose by 3.2% for Q4 and 4.7% for the full year, with mobility, consumer wireline, and Mexico contributing to growth, while business wireline saw a decline [19] - Free cash flow for Q4 was $6.4 billion, and for the full year, it reached $16.8 billion, a 19% increase year-over-year [20][21] Business Line Data and Key Metrics Changes - The mobility segment added 526,000 postpaid phone net adds in Q4, with revenues up more than 4% for the quarter and 2.7% for the year [22][23] - Fiber business saw 273,000 new fiber customers added in Q4, with broadband revenues growing over 8% year-over-year due to fiber revenue growth [25] - Business wireline EBITDA decreased by about 19% in Q4, impacted by prior year discrete revenues not repeating [26] Market Data and Key Metrics Changes - The mid-band 5G network is now available to over 210 million people, and fiber has been expanded to more than 26 million locations [7] - The company has grown its fiber subscriber base by 3.4 million over the past three years, reflecting a nearly 70% increase [8] - Mobility postpaid phone ARPU was $56.23, up 1.4% year-over-year, driven by targeted pricing actions [23] Company Strategy and Development Direction - The company aims to continue its investment-led strategy focusing on 5G and fiber networks to enhance customer experience and drive efficiency [4][5] - Plans to target underpenetrated segments such as value-oriented customers and small to medium-sized businesses to improve performance [12][13] - The company is committed to achieving a net debt to adjusted EBITDA ratio of 2.5 times by the first half of 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of postpaid phone growth and the overall health of the wireless industry [39][41] - The economic outlook is seen as resilient, with expectations for continued growth in 2024 despite potential inflationary pressures [70] - Management is optimistic about the company's positioning in the industry and the ability to deliver on commitments [17][44] Other Important Information - The company achieved $6 billion in run rate cost savings ahead of schedule and set a new target for an additional $2 billion by mid-2026 [9][10] - The company plans to continue enhancing digital and self-service channels supported by AI to improve customer experience [16] Q&A Session Summary Question: Sustainability of postpaid phone growth in 2024 - Management indicated that the market is expected to remain stable, with no significant changes anticipated in growth strategies [37][39] Question: Balance sheet and capital allocation decisions - Management emphasized the importance of investing in business growth while also considering shareholder returns and balance sheet improvements [42][45] Question: Pricing in wireless and AT&T Air initiative - Management stated that pricing strategies will continue to align with the value provided to customers, and AT&T Air will be used selectively to serve specific market segments [54][56][60] Question: Economic outlook for consumers and businesses - Management noted that the economy appears resilient, with no signs of consumer distress, and expects continued growth in 2024 [70]