AT&T (T) Investor Day 2024 summary

Strategic direction and transformation

• Aims to be the leading converged connectivity provider in the U.S. by expanding fiber to over 50 million locations by 2029 and modernizing wireless networks for nationwide 5G coverage, including deep mid-band 5G for 300 million+ people by 2026.

• Transitioning from legacy copper to next-generation networks, targeting majority copper exit by 2029, with modernized IT and network platforms and $6 billion in annual legacy costs targeted for removal.

• Focused on network simplification, application consolidation, and leveraging AI/ML and GenAI to drive innovation, cost savings, and improved customer experience, with over 600 AI/ML models in production.

• No major M&A planned; emphasis on organic growth, operational efficiency, and leveraging scale for cost advantages.

• Customer-centric, converged connectivity solutions and digital-first product innovation to differentiate in the market.

Operational execution and market leadership

• Added approximately 10 million postpaid phone net additions and 11 million fiber locations since 2020, doubling fiber subscribers and nearly doubling consumer fiber revenues since 2021.

• Achieved industry-leading postpaid phone churn and expanded Mobility EBITDA margin by 420 bps over two years.

• Consumer wireline EBITDA growth turned positive in 2022, with fiber ARPU up about 20% and revenue CAGR around 25% since 2021.

• Converged customers (fiber + wireless) deliver higher ARPU, lower churn, higher NPS, and 15%+ higher lifetime value, with a long-term goal of 50% penetration as footprint expands.

• Business Solutions strategy focuses on shifting revenue mix from legacy to 5G and fiber, expanding indirect distribution, and aiming for a 50% increase in converged business customers.

Financial guidance and capital allocation

• 2024 guidance: Wireless service revenue growth at 3%, broadband revenue growth at 7%+, adjusted EBITDA growth in the 3% range, capital investment at the high end of $21–$22B, and free cash flow of $17–$18B.

• 2025–2027 guidance: Annual capital investment of ~$22B, free cash flow (excluding DIRECTV) growing from $16B+ in 2025 to $18B+ in 2027, and adjusted EPS (excluding DIRECTV) of $1.97–$2.07 in 2025 with double-digit percentage growth in 2027.

• Consumer fiber broadband revenue expected to grow at a mid-teens CAGR through 2027, with wireline EBITDA margins targeted to reach 40% as copper is exited.

• $50B+ financial capacity over the next three years, supporting $40B+ in dividends and share repurchases, with $10B reserved for strategic flexibility.

• Net leverage target of net-debt-to-adjusted EBITDA in the 2.5x range to be achieved in first half of 2025 and maintained through 2027, with $25B net debt reduction since 2020.