| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| Mexico Wireless Subscribers | **21.6**  **[0000732717-23-000006_t-20230125.htm:7]** **[0000732717-23-000006_t-4q2022801exhibit991.htm:6]** **[0000732717-23-000007_t-4q2022exhibit992.htm:6]**  | **21.6**  **[0000732717-23-000018_t-20230420.htm:5]** **[0000732717-23-000018_t-1q2023801exhibit991.htm:5]**  | **21.7**  **[0000732717-23-000042_t-20230726.htm:6]**  | **21.754**  **[0000732717-23-000057_t-20230930.htm:41]** **[0000732717-23-000053_t-3q2023801exhibit991.htm:5]**  | **22.3**  **[0000732717-24-000004_t-20240124.htm:6]** **[0000732717-24-000006_t-4q2023exhibit992.htm:6]** **[0000732717-24-000004_t-4q2023801exhibit991.htm:6]**  | **22.459**  **[0000732717-24-000022_t-20240331.htm:29]** **[0000732717-24-000018_t-1q2024exhibit992.htm:5]** **[0000732717-24-000016_t-1q20248xk801exhibit991.htm:5]**  | **22.636**  **[0000732717-24-000053_t-20240630.htm:34]** **[0000732717-24-000050_t-2q2024exhibit992.htm:6]**  | **22.911**  **[0000732717-24-000059_t-20240930.htm:37]** **[0000732717-24-000056_t-3q2024exhibit992.htm:6]**  |
| Mexico Wireless Net Additions | **605**  **[0000732717-23-000006_t-4q2022801exhibit991.htm:6]** **[0000732717-23-000007_t-4q2022exhibit992.htm:6]**  | **10**  **[0000732717-23-000022_t-20230331.htm:32]** **[0000732717-23-000018_t-20230420.htm:5]**  | **76**  **[0000732717-23-000047_t-20230630.htm:40]** **[0000732717-23-000042_t-2q2023801exhibit991.htm:5]**  | **65**  **[0000732717-23-000057_t-20230930.htm:41]** **[0000732717-23-000053_t-3q2023801exhibit991.htm:5]**  | **562**  **[0000732717-24-000006_t-4q2023exhibit992.htm:6]** **[0000732717-24-000004_t-4q2023801exhibit991.htm:6]**  | **143**  **[0000732717-24-000022_t-20240331.htm:29]** **[0000732717-24-000018_t-1q2024exhibit992.htm:5]** **[0000732717-24-000016_t-1q20248xk801exhibit991.htm:5]**  | **177**  **[0000732717-24-000053_t-20240630.htm:34]** **[0000732717-24-000050_t-2q2024exhibit992.htm:6]**  | **275**  **[0000732717-24-000059_t-20240930.htm:37]** **[0000732717-24-000056_t-3q2024exhibit992.htm:6]**  |
| Mobility Net Subscriber Additions | **6,363**  **[0000732717-23-000006_t-4q2022801exhibit991.htm:4]** **[0000732717-23-000007_t-4q2022exhibit992.htm:4]**  | **5,147**  **[0000732717-23-000022_t-20230331.htm:29]**  | **6,192**  **[0000732717-23-000047_t-20230630.htm:36]**  | **6,554**  **[0000732717-23-000057_t-20230930.htm:37]**  | **5,900**  **[0000732717-24-000004_t-20240124.htm:5]**  | **1,741**  **[0000732717-24-000022_t-20240331.htm:26]**  | **1,997**  **[0000732717-24-000050_t-2q2024exhibit991.htm:2]** **[0000732717-24-000053_t-20240630.htm:30]** **[0000732717-24-000050_t-2q2024exhibit992.htm:4]**  | **1,617**  **[0000732717-24-000059_t-20240930.htm:34]** **[0000732717-24-000056_t-3q2024exhibit992.htm:4]**  |
| Postpaid Churn | **1.01**  **[0000732717-23-000006_t-20230125.htm:6]** **[0000732717-23-000006_t-4q2022801exhibit991.htm:4]** **[0000732717-23-000007_t-4q2022exhibit991.htm:4]**  | **0.99**  **[0000732717-23-000019_t-1q2023exhibit991.htm:2]** **[0000732717-23-000022_t-20230331.htm:29]** **[0000732717-23-000019_t-1q2023exhibit992.htm:4]**  | **0.95**  **[0000732717-23-000047_t-20230630.htm:36]** **[0000732717-23-000042_t-20230726.htm:5]** **[0000732717-23-000043_t-2q2023exhibit991.htm:3]**  | **0.95**  **[0000732717-23-000057_t-20230930.htm:37]** **[0000732717-23-000054_t-3q2023exhibit992.htm:4]**  | **1.01**  **[0000732717-24-000004_t-20240124.htm:5]** **[0000732717-24-000006_t-4q2023exhibit991.htm:3]** **[0000732717-24-000006_t-4q2023exhibit992.htm:4]**  | **0.89**  **[0000732717-24-000022_t-20240331.htm:26]** **[0000732717-24-000016_t-20240424.htm:3]** **[0000732717-24-000016_t-1q20248xk801exhibit991.htm:3]**  | **0.85**  **[0000732717-24-000053_t-20240630.htm:30]**  | **0.93**  **[0000732717-24-000059_t-20240930.htm:34]** **[0000732717-24-000056_t-3q2024exhibit992.htm:4]**  |
| Postpaid Phone-Only Churn | **0.84**  **[0000732717-23-000006_t-20230125.htm:6]** **[0000732717-23-000006_t-4q2022801exhibit991.htm:4]** **[0000732717-23-000007_t-4q2022exhibit991.htm:4]**  | **0.81**  **[0000732717-23-000022_t-20230331.htm:29]** **[0000732717-23-000019_t-1q2023exhibit991.htm:2]** **[0000732717-23-000019_t-1q2023exhibit992.htm:4]**  | **0.79**  **[0000732717-23-000047_t-20230630.htm:36]** **[0000732717-23-000042_t-20230726.htm:5]** **[0000732717-23-000042_t-2q2023801exhibit991.htm:4]**  | **0.79**  **[0000732717-23-000053_t-20231019.htm:4]** **[0000732717-23-000057_t-20230930.htm:37]** **[0000732717-23-000054_t-3q2023exhibit992.htm:4]** **[0000732717-23-000053_t-3q2023801exhibit991.htm:4]** **[0000732717-23-000054_t-3q2023exhibit991.htm:2]**  | **0.84**  **[0000732717-24-000006_t-4q2023exhibit991.htm:3]**  | **0.72**  **[0000732717-24-000022_t-20240331.htm:26]** **[0000732717-24-000016_t-20240424.htm:3]** **[0000732717-24-000018_t-1q2024exhibit991.htm:2]**  | **0.70**  **[0000732717-24-000050_t-2q2024exhibit991.htm:2]**  | **0.78**  **[0000732717-24-000059_t-20240930.htm:34]** **[0000732717-24-000056_t-3q2024exhibit992.htm:4]** **[0000732717-24-000056_t3q2024exhibit991.htm:2]**  |
| Fiber Broadband Connections | **7,215**  **[0000732717-23-000006_t-4q2022801exhibit991.htm:5]**  | **7,487**  **[0000732717-23-000022_t-20230331.htm:31]**  | **7,738**  **[0000732717-23-000047_t-20230630.htm:38]**  | **8,034**  **[0000732717-23-000053_t-3q2023801exhibit991.htm:5]**  | **8,307**  **[0000732717-24-000006_t-4q2023exhibit992.htm:5]**  | **8,559**  **[0000732717-24-000022_t-20240331.htm:28]** **[0000732717-24-000018_t-1q2024exhibit992.htm:4]**  | **8,798**  **[0000732717-24-000053_t-20240630.htm:33]**  | **9,024**  **[0000732717-24-000059_t-20240930.htm:36]**  |
| Broadband Net Additions | **-43**  **[0000732717-23-000006_t-20230125.htm:7]**  | **-23**  **[0000732717-23-000022_t-20230331.htm:31]**  | **-35**  **[0000732717-23-000047_t-20230630.htm:38]**  | **15**  **[0000732717-23-000057_t-20230930.htm:40]** **[0000732717-23-000053_t-20231019.htm:5]**  | **3**  **[0000732717-24-000004_t-4q2023801exhibit991.htm:5]**  | **55**  **[0000732717-24-000018_t-1q2024exhibit991.htm:3]**  | **52**  **[0000732717-24-000053_t-20240630.htm:33]**  | **10**  **[0000732717-24-000059_t-20240930.htm:36]**  |
| Fiber Broadband Net Additions | **280**  **[T_3159704_5]** **[0000732717-23-000006_t-20230125.htm:7]** **[0000732717-23-000006_t-4q2022801exhibit991.htm:5]**  | **272**  **[T_3246887_0]** **[T_3246887_4]** **[0000732717-23-000022_t-20230331.htm:31]**  | **251**  **[0000732717-23-000047_t-20230630.htm:38]**  | **296**  **[0000732717-23-000057_t-20230930.htm:40]** **[0000732717-23-000053_t-20231019.htm:5]**  | **273**  **[0000732717-24-000006_t-4q2023exhibit991.htm:0]** **[0000732717-24-000006_t-4q2023exhibit992.htm:5]**  | **252**  **[0000732717-24-000022_t-20240331.htm:28]**  | **239**  **[0000732717-24-000053_t-20240630.htm:33]** **[0000732717-24-000050_t-2q2024exhibit992.htm:5]** **[0000732717-24-000050_t-2q2024exhibit991.htm:3]**  | **226**  **[0000732717-24-000059_t-20240930.htm:36]**  |
| Mobility Subscribers | **217.4**  **[0000732717-23-000006_t-20230125.htm:6]** **[0000732717-23-000007_t-4q2022exhibit992.htm:4]**  | **222.8**  **[0000732717-23-000018_t-20230420.htm:4]** **[0000732717-23-000022_t-20230331.htm:29]** **[0000732717-23-000018_t-1q2023801exhibit991.htm:4]**  | **229.0**  **[0000732717-23-000042_t-20230726.htm:5]** **[0000732717-23-000047_t-20230630.htm:35]**  | **235.6**  **[0000732717-23-000053_t-20231019.htm:4]** **[0000732717-23-000057_t-20230930.htm:37]** **[0000732717-23-000054_t-3q2023exhibit992.htm:4]**  | **241.5**  **[0000732717-24-000004_t-20240124.htm:5]**  | **114.5**  **[0000732717-24-000016_t-20240424.htm:3]**  | **115.474**  **[0000732717-24-000050_t-2q2024exhibit992.htm:4]**  | **116.066**  **[0000732717-24-000056_t-3q2024exhibit992.htm:4]**  |
| Total Domestic Broadband Connections | **15,386**  **[0000732717-23-000011_t-20221231.htm:41]**  | **15,345**  **[0000732717-23-000022_t-20230331.htm:28]**  | **15,304**  **[0000732717-23-000047_t-20230630.htm:34]**  | **15,296**  **[0000732717-23-000057_t-20230930.htm:36]**  | **15,288**  **[0000732717-24-000009_t-20231231.htm:44]**  | **15,334**  **[0000732717-24-000022_t-20240331.htm:25]**  | **15,352**  **[0000732717-24-000053_t-20240630.htm:29]**  | **15,344**  **[0000732717-24-000059_t-20240930.htm:32]**  |
| Network Access Lines in Service | **5,213**  **[0000732717-23-000011_t-20221231.htm:41]**  | **4,938**  **[0000732717-23-000022_t-20230331.htm:28]**  | **4,677**  **[0000732717-23-000047_t-20230630.htm:34]**  | **4,421**  **[0000732717-23-000057_t-20230930.htm:36]**  | **4,185**  **[0000732717-24-000009_t-20231231.htm:44]**  | **3,934**  **[0000732717-24-000022_t-20240331.htm:25]**  | **3,702**  **[0000732717-24-000053_t-20240630.htm:29]**  | **3,486**  **[0000732717-24-000059_t-20240930.htm:32]**  |
| VoIP Connections | **2,311**  **[0000732717-23-000006_t-4q2022801exhibit991.htm:5]**  | **2,212**  **[0000732717-23-000022_t-20230331.htm:31]** **[0000732717-23-000019_t-1q2023exhibit992.htm:5]**  | **2,749**  **[0000732717-23-000042_t-2q2023801exhibit991.htm:3]**  | **2,035**  **[0000732717-23-000057_t-20230930.htm:39]**  | **2,558**  **[0000732717-24-000006_t-4q2023exhibit992.htm:3]**  | **1,869**  **[0000732717-24-000022_t-20240331.htm:28]**  | **1,794**  **[0000732717-24-000053_t-20240630.htm:33]**  | **1,716**  **[0000732717-24-000059_t-20240930.htm:36]** **[0000732717-24-000056_t-3q2024exhibit992.htm:5]**  |
| Remaining Performance Obligations | **35,800**  **[0000732717-23-000011_t-20221231.htm:100]**  | **36,722**  **[0000732717-23-000022_t-20230331.htm:13]**  | **36,156**  **[0000732717-23-000047_t-20230630.htm:18]**  | **36,686**  **[0000732717-23-000057_t-20230930.htm:18]**  | **38,613**  **[0000732717-24-000009_t-20231231.htm:101]**  | **38,866**  **[0000732717-24-000022_t-20240331.htm:12]**  | **38,744**  **[0000732717-24-000053_t-20240630.htm:16]**  | **38,581**  **[0000732717-24-000059_t-20240930.htm:17]**  |

c4387989c197e9fac604bffa35fca7dd0c3e4b9528c368a4cc317b86ee0d8b89

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

46286bd3400e5074d16e5c467ae16bed3d09499d79a652eff9c705ed026f038d

| Metric [USD Billion] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Communications Segment | **30.365**  **[0000732717-23-000006_t-20230125.htm:6]**  | **29.152**  **[0000732717-23-000018_t-20230420.htm:4]**  | **28.845**  **[0000732717-23-000047_t-20230630.htm:32]**  | **29.2**  **[0000732717-23-000053_t-20231019.htm:4]** **[0000732717-23-000057_t-20230930.htm:33]**  | **30.8**  **[0000732717-24-000004_t-20240124.htm:5]**  | **28.9**  **[0000732717-24-000016_t-20240424.htm:3]** **[0000732717-24-000016_t-20240424.htm:2]** **[0000732717-24-000018_t-1q2024exhibit991.htm:2]**  | **28.582**  **[0000732717-24-000050_t-2q2024exhibit991.htm:1]**  | **29.1**  **[0000732717-24-000056_t3q2024exhibit991.htm:1]**  |
| Latin America Segment (Mexico) | **0.861**  **[0000732717-23-000006_t-20230125.htm:7]**  | **0.883**  **[0000732717-23-000018_t-20230420.htm:5]** **[0000732717-23-000022_t-20230331.htm:31]**  | **0.967**  **[0000732717-23-000047_t-20230630.htm:32]**  | **1.0**  **[0000732717-23-000053_t-20231019.htm:5]** **[0000732717-23-000057_t-20230930.htm:33]**  | **1.1**  **[0000732717-24-000004_t-20240124.htm:6]**  | **1.1**  **[0000732717-24-000016_t-20240424.htm:4]** **[0000732717-24-000016_t-1q20248xk801exhibit991.htm:5]** **[0000732717-24-000018_t-1q2024exhibit992.htm:5]**  | **1.103**  **[0000732717-24-000053_t-20240630.htm:27]**  | **1.022**  **[0000732717-24-000056_t-3q2024exhibit992.htm:6]**  |
| Total Operating Revenues | N/A | **30.139**  **[0000732717-23-000022_t-20230331.htm:26]** **[0000732717-23-000019_t-1q2023exhibit991.htm:0]**  | **29.917**  **[0000732717-23-000047_t-20230630.htm:32]**  | **30.4**  **[0000732717-23-000053_t-20231019.htm:3]** **[0000732717-23-000054_t-3q2023exhibit991.htm:1]**  | N/A | **30.0**  **[0000732717-24-000016_t-20240424.htm:2]** **[0000732717-24-000022_t-20240331.htm:24]**  | **29.797**  **[0000732717-24-000053_t-20240630.htm:28]**  | **30.213**  **[0000732717-24-000059_t-20240930.htm:31]**  |

d7be7150daa090a0907bae386d77dcac61217039690b40d0da48a7441ad024a6

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

c2984cc3985efdd3b9a91a8b8fe215c3a8c82bff9fabadf2ef4e98961ed26ab6

48e077dc08a107623b756cf09e691c788de72765a8b4e3a6493a0cd46aeb9fc8

| Segment / Quarter                      | Q4 2022  **[0000732717-23-000006_t-20230125.htm:6]** **[0000732717-23-000006_t-20230125.htm:7]**  | Q1 2023  **[0000732717-23-000018_t-20230420.htm:4]** **[0000732717-23-000018_t-20230420.htm:5]**  | Q2 2023  **[0000732717-23-000042_t-20230726.htm:5]** **[0000732717-23-000042_t-20230726.htm:6]**  | Q3 2023  **[0000732717-23-000053_t-20231019.htm:4]** **[0000732717-23-000053_t-20231019.htm:5]**  | Q4 2023  **[0000732717-24-000004_t-20240124.htm:5]** **[0000732717-24-000004_t-20240124.htm:6]**  | Q1 2024  **[0000732717-24-000016_t-20240424.htm:3]** **[0000732717-24-000016_t-20240424.htm:4]**  | Q2 2024  **[0000732717-24-000050_t-2q2024exhibit991.htm:1]** **[0000732717-24-000053_t-20240630.htm:29]**  | Q3 2024  **[0000732717-24-000056_t3q2024exhibit991.htm:1]** **[0000732717-24-000059_t-20240930.htm:30]**  |
|----------------------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| **Mobility (Billion $)**               | **21.5**           | **20.6**           | **20.3**           | **20.692**         | **22.4**           | **20.6**           | **20.480**         | **21.052**         |
| **Business Wireline (Billion $)**      | **5.6**            | **5.3**            | **5.3**            | **5.221**          | **5.1**            | **4.9**            | **4.755**          | **4.606**          |
| **Consumer Wireline (Billion $)**      | **3.2**            | **3.2**            | **3.3**            | **3.331**          | **3.4**            | **3.4**            | **3.347**          | **3.416**          |

6f5c88eb2e754efcdc7e83a4c5e41ec865658c4065af3ee580a9f8d9b7e1e615

83aa007644861c870402421ab4c5473841edf49da42fde98d44f0a41877fc26b

AT&T Inc. is a telecommunications company that operates primarily through two reportable segments: Communications and Latin America. The company provides wireless and wireline telecom and broadband services to consumers in the U.S. and businesses globally, with a focus on expanding its 5G and fiber networks to drive growth in wireless and broadband services **[0000732717-24-000009_t-20231231.htm:40]** **[0000732717-24-000009_t-20231231.htm:99]**. AT&T's Communications segment includes Mobility, Business Wireline, and Consumer Wireline, while the Latin America segment offers wireless services and equipment in Mexico **[0000732717-24-000009_t-20231231.htm:40]** **[0000732717-24-000009_t-20231231.htm:99]**.

1. **Communications** - Provides telecom and broadband services to U.S. consumers and businesses globally, focusing on wireless and wireline services.
   - **Mobility** - Offers nationwide wireless services and equipment, significantly contributing to the segment's revenue.
   - **Business Wireline** - Delivers advanced ethernet-based fiber services, IP Voice, and managed professional services to businesses.
   - **Consumer Wireline** - Offers broadband services, including fiber connections, to consumers.
2. **Latin America** - Provides wireless services and equipment in Mexico, contributing a smaller portion of the company's total segment operating revenues.

d2ccfacd2adadf4d6b8027bb1878b532df4bd759d08cb813f66938215c98f1e0

1. Can you provide more details on the progress of your multiyear cost-cutting targets, and how confident are you that EBITDA growth will outpace consolidated service revenue performance, especially amid potential operational challenges?
2. Given concerns about a potential volume slowdown in the wireless industry and limited room for further pricing actions, how do you plan to sustain growth in your mobility segment, and do you share these concerns about volumes and pricing power?
3. With the anticipated $480 million one-time payment related to your wireless network transformation in the back half of the year, can you elaborate on what this payment entails and whether it was fully contemplated within your original guidance?
4. You mentioned a 500 basis point market share advantage in areas where you've deployed fiber; could you share more concrete data supporting your argument that convergence is a critical strategy and explain how AT&T is uniquely positioned to capitalize on these economics beyond market share gains?
5. Considering recent network outages and data breaches, how have these events impacted your go-to-market strategy, and do they pose any risks to your future financial performance?

b15adc04b6ee121b066bb5872696473f9ccc43fb39e1557f12da32c8b3504870

United States

- Communications (U.S.)

Mexico

Asia/Pacific Rim

Europe

Latin America

- Mexico

Other

Corporate

International

Total Revenue

fbeab1c4591eae817dcf4e89f996462003950cabe9a440b83ff6ac01d6b9c743

- **América Móvil**: Significant market share competitor in Mexico for wireless services  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Two national wireless providers**: Competitors in the U.S. service areas for wireless services  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Regional providers and resellers**: Competitors in the U.S. service areas for wireless services  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Certain cable companies**: Competitors in the U.S. service areas for wireless services  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Providers offering voice, text messaging, and other services as applications on data networks**: Competitors in the wireless market  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Large cable companies and wireless broadband providers**: Competitors for high-speed internet and voice services in most U.S. markets  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Wireless, cable, and VoIP providers**: Competitors for legacy voice and data services, offering comparable services at lower prices  **[0000732717-24-000009_t-20231231.htm:13]** .
- **Large internet service providers, wireless carriers, other telephone companies, cable companies, and systems integrators**: Competitors for local and interstate telephone and switched services  **[0000732717-24-000009_t-20231231.htm:13]** .

caaac3fdc8147991a739c7afbcb556fa0b7a59c2b4fa06b43ffde5deaf17c0af

9c5eac4e473ffde1753928d64158c0fc6bbcc94fe3fb0c1025a53fec8db596a3

Mexico Wireless Subscribers

Mexico Wireless Net Additions

Mobility Net Subscriber Additions

Postpaid Churn

Postpaid Phone-Only Churn

Fiber Broadband Connections

Broadband Net Additions

Fiber Broadband Net Additions

Mobility Subscribers

Network Access Lines in Service

VoIP Connections

Remaining Performance Obligations

aa2da97ba01ccc7e9b491d25e3367711fc12dd4487a038102afbef6761b56757

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDA Growth**: Expected in the **3% range** for the full year  **[T_3394093_4]** .
  2. **Adjusted EPS**: Expected in the range of **$2.15 to $2.25** for the full year  **[T_3394093_4]** .
  3. **Free Cash Flow**: Expected in the **$17 billion to $18 billion range**  **[T_3394093_6]** .
  4. **Capital Investments**: Expected in the **$21 billion to $22 billion range**  **[T_3394093_4]** .
  5. **Mobility Service Revenue Growth**: Expected in the **3% range**  **[T_3394093_4]** .
  6. **Mobility EBITDA Growth**: Expected at the higher end of the **mid-single-digit range**  **[T_3394093_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Free Cash Flow**: Expected in the **$17 billion to $18 billion range**  **[T_3394093_6]** .
  2. **Adjusted EBITDA Growth**: Expected in the **3% range**  **[T_3394093_4]** .
  3. **Adjusted EPS**: Expected in the range of **$2.15 to $2.25**  **[T_3394093_4]** .
  4. **Capital Investments**: Expected in the **$21 billion to $22 billion range**  **[T_3394093_4]** .
  5. **Mobility Service Revenue Growth**: Expected in the **3% range**  **[T_3394093_4]** .
  6. **Mobility EBITDA Growth**: Expected at the higher end of the **mid-single-digit range**  **[T_3394093_4]** .
  7. **Net Debt to Adjusted EBITDA**: Expected in the **2.5x range** in the first half of next year  **[T_3394093_3]** .
  8. **Business Wireline EBITDA Declines**: Expected in the **mid-teens range**  **[T_3394093_5]** .
  9. **DIRECTV Cash Distributions**: Expected to decline by about **20% annually**  **[T_3394093_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Leverage Target**: **2.5x leverage target** for early next year  **[T_3380422_7]** .
  2. **DIRECTV Cash Distributions**: Expected **$3 billion** with a decline rate of about **20%**  **[T_3380422_12]** **[T_3380422_6]** .
  3. **Free Cash Flow**: Expected in the **$17 billion to $18 billion range**  **[T_3380422_6]** .
  4. **Adjusted EBITDA Growth**: Expected in the **3% range**  **[T_3380422_4]** .
  5. **Adjusted EPS**: Expected in the range of **$2.15 to $2.25**  **[T_3380422_4]** .
  6. **Wireless Service Revenue Growth**: Expected in the **3% range**  **[T_3380422_4]** .
  7. **Mobility EBITDA Growth**: Expected at the higher end of the **mid-single-digit range**  **[T_3380422_4]** .
  8. **Consumer Wireline EBITDA Growth**: Expected in the **mid- to high single-digit range**  **[T_3380422_5]** .
  9. **Business Wireline EBITDA Decline**: Expected in the **mid-teens range**  **[T_3380422_5]** .
  10. **Capital Investments**: Expected in the **$21 billion to $22 billion range**  **[T_3380422_5]** .
  11. **Fiber Expansion**: On track to pass **30 million-plus locations by the end of 2025**  **[T_3380422_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Mobility Subscribers**: Expected to grow  **[T_3370672_5]** .
  2. **Wireless Service Revenue Growth**: Expected in the **3% range**  **[T_3370672_5]** .
  3. **Broadband Revenue Growth**: Expected to increase by **7%-plus**  **[T_3370672_5]** .
  4. **Consolidated Revenue**: Expected to continue growing  **[T_3370672_5]** .
  5. **Mobility EBITDA**: Expected to grow in the **mid-single digits**  **[T_3370672_5]** .
  6. **Business Wireline EBITDA**: Expected to decline by about **10% plus or minus**  **[T_3370672_5]** .
  7. **Consumer Wireline EBITDA**: Expected to grow in the **mid-single-digit range**  **[T_3370672_5]** .
  8. **Consolidated Adjusted EBITDA Growth**: Expected in the **3% range**  **[T_3370672_5]** .
  9. **Adjusted EPS**: Expected in the range of **$2.15 to $2.25**  **[T_3370672_6]** .
  10. **Free Cash Flow**: Expected in the **$17 billion to $18 billion range**  **[T_3370672_6]** .
  11. **Capital Investment**: Expected in the **$21 billion to $22 billion range**  **[T_3370672_6]** .
  12. **Cash Taxes**: Expected to increase by about **$1.5 billion**  **[T_3370672_6]** .
  13. **DIRECTV Cash Distributions**: Expected to decline by about **20% annually**  **[T_3380422_6]** .

2f73adc71c5a5f5e8b6723c26ebb246b7eb6258661fb266d69b7d3032edb05dd

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| John T. Stankey       | Chief Executive Officer and President                                    | July 2020  | John T. Stankey has been the CEO and President of AT&T Inc. since July 2020. He began his career with the company in 1985 and has held various leadership roles, including CEO of WarnerMedia and AT&T Business Solutions  **[0001193125-24-087253_d502707ddef14a.htm:15]** **[0001193125-23-089578_d393251ddef14a.htm:16]** .               |
| F. Thaddeus Arroyo    | Chief Strategy and Development Officer                                   | May 2022   | F. Thaddeus Arroyo has been the Chief Strategy and Development Officer at AT&T Inc. since May 2022. He has held various high-level managerial positions within AT&T or its subsidiaries for more than the past five years  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** .               |
| Pascal Desroches      | Senior Executive Vice President and Chief Financial Officer              | April 2021 | Pascal Desroches has served as the CFO of AT&T Inc. since April 2021. Previously, he was the Executive Vice President - Finance of AT&T and held CFO roles at WarnerMedia and Turner  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** .                                                    |
| Edward W. Gillespie   | Senior Executive Vice President - External and Legislative Affairs       | April 2020 | Edward W. Gillespie has been the Senior Executive Vice President - External and Legislative Affairs at AT&T Services, Inc. since April 2020. He was previously Managing Director of Sard Verbinnen & Co. and Counselor to President George W. Bush  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** . |
| Kellyn S. Kenny       | Chief Marketing and Growth Officer                                       | May 2022   | Kellyn S. Kenny has been the Chief Marketing and Growth Officer at AT&T Inc. since May 2022. She was previously the Chief Marketing and Growth Officer for AT&T Communications, LLC, and Global Chief Marketing Officer at Hilton Worldwide Holdings  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** . |
| Lori M. Lee           | Global Marketing Officer and Senior Executive Vice President - HR and International | August 2023 | Lori M. Lee has held her current position at AT&T since August 2023. She previously served as the Global Marketing Officer and Senior Executive Vice President - International starting in December 2022  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** .                                |
| Jeremy Legg           | Chief Technology Officer                                                 | May 2022   | Jeremy Legg has been the Chief Technology Officer at AT&T Services, Inc. since May 2022. He previously served as the CTO for AT&T Technology Services, WarnerMedia, and Turner  **[0000732717-24-000009_t-20231231.htm:36]** .                                                             |
| David R. McAtee II    | Senior Executive Vice President and General Counsel                      | October 2015 | David R. McAtee II has been the Senior Executive Vice President and General Counsel at AT&T Inc. since October 2015  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** .                                                                                                                     |
| Jeffery S. McElfresh  | Chief Operating Officer                                                  | May 2022   | Jeffery S. McElfresh has been the Chief Operating Officer at AT&T Inc. since May 2022. He has held high-level managerial positions within AT&T or its subsidiaries for more than the past five years  **[0000732717-24-000009_t-20231231.htm:36]** **[0000732717-23-000011_t-20221231.htm:33]** .                                    |

94b7a169c5c1657d348a13c00b92a55f1fd0e0fb03c6942ad40d4c88fca7519c

| Program Details           | Program 1          |
|---------------------------|--------------------|
| Approval Date             | March 2014  **[0000732717-24-000059_t-20240930.htm:52]** **[0000732717-24-000059_t-20240930.htm:44]**   |
| End Date/Duration         | No expiration date  **[0000732717-24-000059_t-20240930.htm:52]** **[0000732717-24-000059_t-20240930.htm:44]**  |
| Total additional amount   | 300 million shares  **[0000732717-24-000059_t-20240930.htm:52]** **[0000732717-24-000059_t-20240930.htm:44]**  |
| Remaining authorization   | 144 million shares  **[0000732717-24-000059_t-20240930.htm:52]** **[0000732717-24-000059_t-20240930.htm:44]**  |
| Details                   | Repurchase shares for employee benefit plans or acquisitions. Funded through cash from operations, borrowings, or cash from non-strategic investments.  **[0000732717-24-000009_t-20231231.htm:131]** **[0000732717-24-000009_t-20231231.htm:37]**  |

d6a7d0cd63db9366686b813fe63b39102fcfb42705b1b9c45f0d123fdd680b73

**Annual guidance for FY 2024:**
- **Free Cash Flow**: $17 billion to $18 billion  **[T_3394093_6]**  (no change from prior guidance $17 billion to $18 billion  **[T_3394093_6]** )  
- **Adjusted EBITDA Growth**: 3% range  **[T_3394093_4]**  (no change from prior guidance 3% range  **[T_3394093_4]** )  
- **Adjusted EPS**: $2.15 to $2.25  **[T_3394093_4]**  (no change from prior guidance $2.15 to $2.25  **[T_3394093_4]** )  
- **Capital Investments**: $21 billion to $22 billion  **[T_3394093_4]**  (no change from prior guidance $21 billion to $22 billion  **[T_3394093_4]** )  
- **Mobility Service Revenue Growth**: 3% range  **[T_3394093_4]**  (no change from prior guidance 3% range  **[T_3394093_4]** )  
- **Mobility EBITDA Growth**: Higher end of the mid-single-digit range  **[T_3394093_4]**  (no change from prior guidance higher end of the mid-single-digit range  **[T_3394093_4]** )  

e56d84a2a08373d94dc8b53ab9e8c44f137d3038ddcbb4e04afd5f157c168292

- **Strong Growth in Fiber Subscribers and ARPU Expansion**: AT&T achieved its highest-ever AT&T Fiber net additions in the fourth quarter with **307,000 net adds**.  **[T_3413301_4]**  Fiber ARPU increased by **$1.35 sequentially and 4.7% year-over-year**, driven by pricing actions and favorable plan mix.  **[T_3413301_4]**  This demonstrates strong demand for AT&T's fiber services and potential for continued ARPU growth.
- **Consistent Performance in Mobility Business with Low Churn**: The Mobility business continues to deliver strong results, growing both revenues and EBITDA for the **seventh consecutive year**.  **[T_3413301_4]**  AT&T added **482,000 postpaid phone net additions** in the quarter  **[T_3413301_4]** , and postpaid phone churn remains low, expected to lead the industry.  **[T_3413301_1]**  Mobility revenues were up **3.3%** for the quarter, indicating sustained growth in the wireless segment.  **[T_3413301_4]**
- **Focused Cost Savings and Enhanced Shareholder Returns**: AT&T established a new **$3 billion plus run rate cost savings target** through the end of 2027, aiming to improve operational efficiency by integrating AI and migrating from legacy copper networks.  **[T_3413301_2]** **[T_3413301_3]**  They also expect to achieve net debt to adjusted EBITDA in the **2.5x range** in the first half of 2025, positioning them to commence share repurchases in the second half of 2025 as part of a **$40 billion-plus shareholder return plan** over the next three years.  **[T_3413301_2]** **[T_3413301_5]** **[T_3413301_4]**

5ac05790d17ea9795eb34e12106ec1ea7e825265aeeb1043e702a79a820115da

- **AT&T expects further normalization and potential moderation in net additions in the wireless market, indicating limited growth opportunities in Mobility due to a shrinking overall pool of growth.** The company does not expect outsized numbers in gross adds, given the market conditions.  **[T_3413301_10]** ,  **[T_3413301_5]**
- **The Business Wireline segment continues to face pressures from secular declines in legacy services.** While transitioning to fiber-based services, AT&T acknowledges there is a "dollar for dollar is a little bit of a trade down," meaning revenue per customer might be lower, and the transition may be slow to offset declines, leading to ongoing EBITDA declines.  **[T_3413301_11]**
- **Cost savings from decommissioning the legacy copper network will take time to materialize.** The processes involve customer notice cycles and transitions that do not result in immediate cost reductions, potentially delaying the impact on financials and affecting AT&T's ability to achieve its cost-saving objectives rapidly.  **[T_3413301_12]**

563ffa168f1ac3d18484af8324608fe9ddb6d65aed8a4b6df0cd10627f726737

1. **Cost Savings from Legacy Decommissioning**

   **Q:** Will regulatory filings enable cost savings by 2025?  

   **A:** The decommissioning of legacy products and copper infrastructure is a key part of our cost savings objectives over the next three years. While cost reductions take time due to customer notice cycles and transitions, these processes are factored into our guidance and will help reshape our cost structure by **2029**. We are initiating the first scale test with about **1,300 wire centers** and expect to work collaboratively with the commission to expedite the process. **[T_3413301_8]**

2. **Impact of Tax Reform on Fiber Expansion**

   **Q:** Could tax reform accelerate fiber build plans?  

   **A:** If tax cuts are enacted, we might consider accelerating some of our fiber build. Increasing from **3 million** to **4 million** fiber builds per year would require a **12 to 18-month** ramp-up. While we don't expect to return to previous investment peaks of **$24 billion**, tax policy changes could allow for faster completion of our fiber plan or returning value to shareholders. **[T_3413301_8]**

3. **Fiber ARPU Growth and Competitive Position**

   **Q:** Can you sustain fiber ARPU growth amid cable competition?  

   **A:** We are confident in our fiber ARPU growth as we continue to manage our customer base effectively. Recent price increases and customers upgrading to higher speeds contribute to ARPU improvement. Despite competitors' aggressive offers, we remain **lower than cable on an ARPU basis**, which helps us win by providing a better product at a competitive price. **[T_3413301_11]**

4. **Wireless Market Normalization and Subscriber Trends**

   **Q:** How do you view wireless market trends and growth mix?  

   **A:** We expect further normalization in the wireless market, similar to last year. We'll focus on both volume growth and managing ARPU, effectively balancing subscriber acquisition with base management. While the overall pool of growth is getting smaller, we aim to improve our gross add performance in certain segments without expecting outsized numbers. ** **[T_3413301_10]** **[T_3413301_11]** **

5. **Business Wireline Outlook and AI Opportunities**

   **Q:** Are there growth opportunities in Business Wireline from AI?  

   **A:** Although the Business Wireline outlook remains muted due to a shift from legacy products, we see opportunities in providing fiber connectivity for AI applications. We had some of our **best fiber growth in business** segments in the fourth quarter. As AI becomes more critical, we expect to be more effective in middle-mile infrastructure, which aligns with our forecasts. **[T_3413301_13]**

6. **Use of AI to Improve Operations**

   **Q:** How is AI helping to reduce costs and enhance operations?  

   **A:** We've extensively applied AI in our operations, resulting in a **30% year-over-year reduction** in call volumes despite a growing customer base. AI tools have improved efficiency in our call centers and coding effectiveness, allowing us to develop more with less investment. We believe we're early in a significant technology cycle and aim to leverage AI to further improve customer relationships and cost structures. **[T_3413301_15]**

7. **Impact of Immigration on Postpaid Business**

   **Q:** How sensitive is your postpaid business to immigration changes?  

   **A:** We are less sensitive to immigration changes compared to the industry, as we're not as extensively distributed in that market segment. While we would like to be more effective in that space, any downward trend in immigration will have a lesser impact on us. Overall, more people in the U.S. is beneficial for our business, and we advocate for smart immigration policies that support economic growth. **[T_3413301_12]**

8. **Customer Phone Upgrades and Device Aging**

   **Q:** Are customers holding onto phones longer, affecting upgrades?  

   **A:** We haven't observed any fundamental shift in customers' desires to upgrade their phones. Devices are more durable, and customers are taking better care of them. Upgrade rates remain consistent with our forecasts, and we're not expecting significant changes unless compelling new devices enter the market. **[T_3413301_12]**

9. **Reseller Contribution to Mobility Growth**

   **Q:** Is reseller growth impacting Mobility service revenues?  

   **A:** Yes, we've benefitted from DISH's customer migrations and are seeing contributions from other MVNO reseller accounts. While not the only factor, reseller growth has been a significant contributor to our increased retail subscriber additions, which were up **13.5% quarter-over-quarter**. **[T_3413301_10]**

f073c508f3219b3acc6d40c53f3ee686dcce3d1e245357a9fefe367aad482a96

AT&T Q4: 307K fiber net adds—a record—and fiber ARPU up 4.7% YoY. Mobility revenue up 3.3% on 482K postpaid adds. New $3B cost-savings plan to help debt reach 2.5x EBITDA by 1H25, setting stage for share buybacks in 2H25. Fiber momentum leads the story.

6dfc5e533c4fd8ae6a18ce1a482a7d31d91db282bc1f0131e1f66d5d06a5d955

0bf65315c785ef1e4b74a5df534f85ccda33edd5ff60284d1574da903536d357

f2c5a14d7a4bd1d80ee7fcfbd133fad2be84175aab3e6c03e6c684086ed76d43

**Annual guidance for FY 2025:**

- **Adjusted EPS**: $1.97 to $2.07  **[T_3413301_7]**  (lowered from $2.15 to $2.25  **[T_3394093_4]** )  
- **Adjusted EBITDA Growth**: 3% or better  **[T_3413301_6]**  (no change from 3% range  **[T_3394093_4]** )  
- **Free Cash Flow**: exceed $16 billion  **[T_3413301_7]**  (lowered from $17 billion to $18 billion  **[T_3394093_6]** )  
- **Capital Investment**: $22 billion range  **[T_3413301_2]**  (raised from $21 billion to $22 billion  **[T_3394093_4]** )  
- **Mobility Service Revenue Growth**: higher end of the 2% to 3% range  **[T_3413301_5]**  (no change from 3%  **[T_3394093_4]** )  
- **Mobility EBITDA Growth**: higher end of the 3% to 4% range  **[T_3413301_5]**  (lowered from higher end of mid-single-digit range  **[T_3394093_4]** )  

- **Consumer Wireline EBITDA Growth**: high single to low double-digit range  **[T_3413301_5]**  (no prior guidance)  
- **Fiber Revenue Growth**: mid-teens  **[T_3413301_5]**  (no prior guidance)  
- **Business Wireline EBITDA Decline**: mid-teens range  **[T_3413301_6]**  (no prior guidance)  
- **Net Debt to Adjusted EBITDA**: 2.5x range in the first half of 2025  **[T_3413301_2]**  (no prior guidance)  
- **Cash Taxes**: $3.3 billion  **[T_3413301_7]**  (no prior guidance)  
- **Share Repurchases**: $10 billion starting in the second half of 2025  **[T_3413301_2]**  (no prior guidance)  
- **Dividend Payments**: maintain current dividend  **[T_3413301_2]**  (no prior guidance)  
- **Broadband Revenue Growth**: 7%-plus range  **[T_3413301_4]**  (no prior guidance)  
- **Legacy Copper Network Transition**: majority exited by end of 2029  **[T_3413301_2]**  (no prior guidance)  

d3615a09f7a853d6e7d06049bfa2dfacd3aba57dbe98956d960918194aa2d8f3

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1999  **[0000732717-24-000009_t-20231231.htm:77]**  | Present  | Current auditor   |

f30a8288cd8ef0486ec27b50ec1fcfe0a7c709fa4df01414a4dcf66e18bfff43

- Total Revenue: $32,298 million (+1% YoY)  **[0000732717-24-000009_t-20231231.htm:99]** **[0000732717-25-000007_t-4q2024exhibit992.htm:7]**   
- Mobility: $23,129 million (+3% YoY)  **[0000732717-24-000009_t-20231231.htm:44]** **[0000732717-25-000007_t-4q2024exhibit992.htm:4]**   
- Business Wireline: $4,545 million (−10% YoY)  **[0000732717-24-000009_t-20231231.htm:44]** **[0000732717-25-000007_t-4q2024exhibit992.htm:4]**   
- Consumer Wireline: $3,465 million (+3% YoY)  **[0000732717-24-000009_t-20231231.htm:44]** **[0000732717-25-000007_t-4q2024exhibit992.htm:5]**   
- Broadband: $2,911 million (**+8%** YoY)  **[0000732717-24-000009_t-20231231.htm:99]** **[0000732717-25-000007_t-4q2024exhibit992.htm:5]**   
- Legacy Voice and Data: $231 million (**−60%** YoY)  **[0000732717-24-000009_t-20231231.htm:99]** **[0000732717-25-000007_t-4q2024exhibit992.htm:5]**   
- Other (Consumer Wireline sub-segment): $211 million (**+415%** YoY)  **[0000732717-24-000009_t-20231231.htm:99]** **[0000732717-25-000007_t-4q2024exhibit992.htm:5]**   

6fcf98df717ba318182041cdb8e38058a8d259bd4a56636ccb402ce0f6e4d745

db25e319ed3b545382a1c4e111c3382438d7bf0922932de7ca1ae0182e74df9a

ed9865f51a3aac859e40ccfe3060d6521d68bdbc018b59b30416cb28dfc69714

| Year  | Amount Due (Millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|-------|------------------------|-------------------------------|-------------------|---------------------------------------------------------------------------------|
| 2024  | 2,637                 | Long-term debt maturing within one year | 6.0 **[0000732717-24-000059_t-20240930.htm:44]**       | 2.0% = (2,637 / 129,012) * 100 **[0000732717-24-000059_t-20240930.htm:42]** **[0000732717-24-000059_t-20240930.htm:5]** **[0000732717-24-000059_t-20240930.htm:44]**                          |
| N/A   | 126,375               | Long-term debt (beyond 2024)  | 4.2 **[0000732717-24-000059_t-20240930.htm:44]**       | 98.0% = (126,375 / 129,012) * 100 **[0000732717-24-000059_t-20240930.htm:42]** **[0000732717-24-000059_t-20240930.htm:5]** **[0000732717-24-000059_t-20240930.htm:44]**                       |

0a24a9a6984feb6f9ec27d89d55ddaec02df630b55241a5f5ed658722cba3c85

1. **Free Cash Flow Outlook**  
   **Q:** How will free cash flow components change next year?  
   **A:** AT&T expects to achieve sustainable growth in both **earnings and cash** in 2024. The growth drivers include continued strong performance in **Mobility** and **fiber broadband**, cost takeout efforts creating an efficient cost structure, **EBITDA growth**, and a reduction in **CapEx** from elevated levels in 2022 and 2023. Offsetting factors include anticipated declines in **DIRECTV contributions** and higher tax payments due to the phase-out of 2017 tax incentives like bonus depreciation.  **[T_3337739_9]** 

2. **Capital Expenditure Guidance**  
   **Q:** Should we expect CapEx to be lower in Q4 and next year?  
   **A:** AT&T reiterated that its **CapEx for the year will mirror** what was spent last year. They plan to deliver a fourth quarter CapEx that reflects similar levels to the prior year. The company is working towards a more **ratable spend pattern** and smoothing out seasonality in CapEx.  **[T_3337739_10]** 

3. **Wireless Pricing Strategy**  
   **Q:** How do you see pricing affecting growth given cable competition?  
   **A:** AT&T believes that with significant industry investments, it's rational for pricing to adjust to ensure returns on these investments. They see opportunities to adjust pricing strategically, focusing on **accretive, profitable growth** and targeting the right customers for the long term. They acknowledge cable's strategy of targeting a particular market segment but maintain confidence in their approach to **value and pricing**.  **[T_3337739_13]** 

4. **Fiber ARPU Growth Potential**  
   **Q:** Can fiber ARPU growth continue at current rates?  
   **A:** The ARPU growth in fiber is driven by customers migrating to **higher speed plans** and managing the base with pricing adjustments. AT&T sees significant room for continued growth as they offer higher-speed products like **5-gig networks**. They believe there's a long runway for customers to upgrade, and they plan to leverage this opportunity for **margin accretion** through both ARPU growth and cost efficiencies as they scale.  **[T_3337739_8]** 

5. **Cost-Cutting Targets**  
   **Q:** What's the status of cost-cutting targets and future savings?  
   **A:** AT&T has achieved **$6 billion** in cost savings over the past three years in an inflationary environment. They have targeted an additional **$2 billion** in savings over the next three years. The recent accrual taken this quarter is indicative of planned cost reductions over the next 12 months, and they feel confident about achieving the $2 billion target through ongoing efficiency efforts.  **[T_3337739_12]** 

6. **Impact of BEAD Program**  
   **Q:** How will the BEAD program affect fiber build plans?  
   **A:** The **BEAD process is progressing slowly**, and AT&T doesn't expect BEAD-supported infrastructure builds to impact their **2024 financial plan**. They see this as a **2025 and beyond** initiative. The company anticipates that in some cases, BEAD-funded builds might substitute planned fiber builds in certain states, while in other cases, they could be incremental. However, any impact won't be seen over the next **18 months** regarding investment levels or subscriber counts.  **[T_3337739_8]** **[T_3337739_12]** 

7. **Device Upgrade Rates and Margins**  
   **Q:** What factors are affecting slowing device upgrade rates?  
   **A:** The slowdown in device upgrade rates is attributed to less dramatic changes between device generations, better care and protection of devices by consumers, and **higher device costs** leading consumers to keep their phones longer. AT&T doesn't expect significant further declines, and this trend is not expected to materially alter their financial outlook or **margins**.  **[T_3337739_12]** 

8. **Wireless Churn and Competition**  
   **Q:** What are the trends in wireless churn and competition?  
   **A:** AT&T's wireless **churn remains stable and strong**, even amidst competition from cable MVNOs. The company has returned to a normalized performance, focusing on gaining a fair share of **accretive, profitable customers** and growing revenue share. They are optimistic about the fourth quarter, expecting a strong seasonal performance with solid customer retention.  **[T_3337739_9]** 

9. **Regulatory Environment Concerns**  
   **Q:** What is AT&T's view on the new net neutrality proposals?  
   **A:** AT&T argues that the U.S. broadband infrastructure performed exceptionally during the pandemic, indicating that current policies are effective. They see **no evidence of ISP discrimination** that would warrant new net neutrality regulations. AT&T believes that regulatory focus should instead be on issues like **spectrum policy** and **universal service reforms**. They plan to participate constructively in the regulatory process but will advocate for policies based on market realities.  **[T_3337739_13]** 

10. **Business Segment Declines**  
    **Q:** What is driving declines in the business segment?  
    **A:** The most significant impact on the fixed wireline business is the secular shift toward **software-defined networking (SDN)**, leading to a reduction in managed complex networking revenues. Additionally, AT&T is **exiting certain low-margin product sets**. The decline is not primarily due to weaker business demand. When combining wireless and fixed business performance, the overall dynamic is relatively flat, and AT&T sees **growth opportunities emerging** in wireless services for enterprise customers.  **[T_3337739_15]** 

9a4a2ec843b8de088ee9df4fd8b2f0a8a5af9f5e03e4bb0d7e6a70bb50f0ccab

1. **Fiber Expansion Plans**  
   **Q:** Are you accelerating fiber buildout beyond 30 million passings?  
   **A:** We are well on our way to achieving **30 million fiber passings by next year**.  **[T_3394093_9]**  Given the strong returns we've seen, which have been **better than expected** when we started in 2014–2015  **[T_3394093_9]** , we expect to continue investing in fiber growth beyond 30 million passings.  **[T_3394093_9]**  The exact number and pace will be shared later, as we ensure alignment with our Board.  **[T_3394093_9]** 

2. **Network Augmentation amid Spectrum Constraints**  
   **Q:** How are you planning network spend amid spectrum constraints?  
   **A:** We view capacity as a fixed resource that must be managed carefully.  **[T_3394093_11]**  We've put a lot of capacity out there over the last few years and are being deliberate in deploying it.  **[T_3394093_11]**  Our investment in fiber helps us handle high-density traffic efficiently, reducing reliance on wireless spectrum.  **[T_3394093_11]**  We're also advocating for policy changes to improve spectrum availability and exploring options in the secondary market.  **[T_3394093_11]**  Additionally, we're focusing on **Open RAN (ORAN)** to enable more efficient capacity growth through more distributed radiation points and leveraging our dense fiber assets.  **[T_3394093_11]** 

3. **Cost Structure Improvements and EBITDA Growth**  
   **Q:** How are you progressing on cost-cutting and EBITDA growth?  
   **A:** We're continuing to achieve **margin accretion** that outpaces service revenue growth by effectively managing our cost structure.  **[T_3394093_12]**  We're repositioning our business to be a **5G and fiber provider**, mining out costs built up over a century.  **[T_3394093_12]**  We're making progress on the regulatory front and have retooled our labor structure.  **[T_3394093_12]**  Technology advancements and our fiber deployment are improving operational efficiency, with benefits seen in **failure rates, reliability, and on-time performance**.  **[T_3394093_12]**  We believe we can continue to **reduce costs**, improve **consumer margins**, and maintain competitive margins in wireless while growing the business.  **[T_3394093_12]** 

4. **Impact of Data Breaches and Outages**  
   **Q:** How are data breaches affecting your business and financials?  
   **A:** We are disappointed by these events and care deeply about our reliability and data security.  **[T_3394093_10]**  We've been responsive and have taken good action to learn from these issues internally.  **[T_3394093_10]**  Despite the challenging threat environment, we've maintained customer confidence and feel **confident in our financial guidance going forward**.  **[T_3394093_10]** 

5. **Wireless Volume Slowdown and Pricing Power**  
   **Q:** Do you see wireless volumes slowing and limited pricing power?  
   **A:** We've anticipated **moderating volumes** in the market and expect to see this trend continue.  **[T_3394093_13]**  However, we have a unique position with opportunities for **share take**, allowing us to create our own growth by winning customers from others.  **[T_3394093_13]**  We're focusing on **quality growth**, bringing in customers that contribute directly to **EBITDA growth**.  **[T_3394093_13]**  We've demonstrated the ability to deliver more value to customers, and we believe there's room to **differentiate our products** and ultimately improve ARPU.  **[T_3394093_13]** 

6. **Affordable Connectivity Program (ACP) Impact**  
   **Q:** How is ACP affecting your business this quarter?  
   **A:** We're most of the way through the ACP effect and have managed it effectively.  **[T_3394093_8]**  There has been a **slight impact** on fixed broadband, but it's not the sole reason for the softness this quarter.  **[T_3394093_8]**  The vast majority of our customers have transitioned, and we feel confident in our ability to deliver on our commitments.  **[T_3394093_8]**  Our **prepaid business performed well** despite some impacts from ACP.  **[T_3394093_8]** 

7. **Impact of New iPhone on Upgrades and Competition**  
   **Q:** Are you expecting higher upgrades with the new iPhone, and how will it affect churn and competition?  
   **A:** There is typical seasonality with new device cycles, including a **suppression effect** before launch and an **acceleration** after.  **[T_3394093_7]**  We expect this cycle to continue and are positioned to adjust accordingly.  **[T_3394093_7]**  If customers find meaningful features in new devices, we'll respond to it.  **[T_3394093_7]**  We're in a good position with our guidance to handle whatever happens, and we've been through these cycles before.  **[T_3394093_7]** 

8. **GigaPower and Open Access Relationships**  
   **Q:** Can you update us on GigaPower's progress and potential for more partnerships?  
   **A:** We'll provide detailed insights at our upcoming **Communacopia** session after completing an **18-month cycle** to gather performance data.  **[T_3394093_7]**  We're optimistic about opportunities to grow profitably on **fiber and convergence** in various models.  **[T_3394093_7]**  We've built a **back office for GigaPower** with a wholesale relationship structure that we make available to others.  **[T_3394093_7]**  We see further opportunities and are active in forming more partnerships to drive convergence.  **[T_3394093_7]** 

9. **Internet Air Expansion**  
   **Q:** Will Internet Air's national business launch accelerate net adds, and do you have capacity for it?  
   **A:** We expect to continue growing and see improvements, but this aligns with our existing strategy.  **[T_3394093_9]**  We're not broadly offering Internet Air everywhere, but are **selective**, focusing on areas that aid our transition from legacy technology and where we have **ample capacity**.  **[T_3394093_9]**  For business customers, we're comfortable offering it nationally and can **profitably add** it to our portfolio.  **[T_3394093_9]**  We anticipate improvements in our business segment numbers in the coming quarters.  **[T_3394093_9]** 

e9d6169804fe22a6aeb19a7d5857a57618c372305abd24551f3beb74b7976519

- **Strong performance in Mobility and Consumer Wireline businesses**, with **record low churn** in Mobility and **EBITDA growth** exceeding expectations, leading to **margin expansion** and improved operating leverage.  **[T_3380422_13]** **[T_3380422_14]** **[T_3380422_10]**
- **Deliberate capital allocation** focusing on **fiber expansion**, positioning AT&T for sustainable growth and potentially exceeding initial fiber build targets, while progressing towards **deleveraging goals** that may allow for returning capital to shareholders.  **[T_3380422_7]** **[T_3380422_17]** **[T_3380422_16]**
- **Confident transition of Business Wireline** by focusing on growth areas in **5G and fiber**, leveraging **strong brand and distribution** to capture opportunities in underpenetrated segments like SMB and mid-market, which is expected to lead to future growth in business services.  **[T_3380422_14]** **[T_3380422_16]**

f122b90c82bfc97a1c10aed2a1486917f3ebd1882dcb241c4b40e89126f87d9c

- AT&T's successful convergence strategy is driving growth and customer satisfaction, with **combined customers having lower churn and longer lifetime values**, and AT&T having a **500 basis point market share advantage** in areas with deployed fiber, positioning the company uniquely in the market.  **[T_3394093_10]**
- AT&T is experiencing strong growth in both mobility and fiber broadband, with **significant opportunities to expand fiber passings beyond initial targets** due to **better-than-expected returns**, planning to **pass 30 million fiber locations by the end of 2025** and potentially **expand by 10-15 million additional locations**, enhancing their converged service offerings and competitive advantage.  **[T_3394093_5]** **[T_3394093_9]**
- AT&T is effectively managing costs and achieving **margin accretion** that outpaces service revenue growth, improving profitability through focus on quality growth, cost structure improvements, and operational efficiencies, including **more than 7% EBITDA growth** in their consumer wireline business during the second quarter.  **[T_3394093_12]** **[T_3394093_5]**

d920e8e44e9efc9f3779069be875cb560fe9502ce794376fba644a541361e6bf

1. **Capital Allocation Priorities**  
   **Q:** Can you discuss capital allocation options after reaching leverage target?  
   **A:** AT&T is nearing its **2.5x leverage target** early next year and is considering various capital allocation options. The Board is conducting a deliberate process to decide the best course of action, focusing on treating shareholders well and returning capital smartly. They will evaluate factors like **interest rates**, **dividend yield relative to equity value**, and **opportunities for reinvestment** to determine the right mix. The company feels confident about the balance sheet and does not see an immediate need to change its current trajectory.  **[T_3380422_7]** 

2. **Business Wireline Decline**  
   **Q:** What's the endgame for the declining Business Wireline segment?  
   **A:** The decline in Business Wireline is largely **technology-driven**, with traditional voice services being replaced by integrated communication services over IP. AT&T is transitioning to focus on growth businesses built on **5G and fiber**, aiming to serve not just the top end but across the entire market. This shift involves rebuilding capabilities in distribution and product mix for the mid-market. While the transition may be challenging for a couple of quarters due to lower margins on new services, they are confident in the AT&T brand's strength in business and expect to offset declines with connectivity-based services in fiber and 5G.  **[T_3380422_16]** 

3. **Mobility EBIT Growth Factors**  
   **Q:** Why didn't Mobility EBITDA outgrow service revenue despite lower churn and gross adds?  
   **A:** The Mobility segment's EBIT growth was impacted by **accelerated depreciation** associated with equipment from the Ericsson Open RAN deal, depreciated over shorter lives. This accounting factor affected operating income, but overall, AT&T feels good about expense management and cost profile, as evidenced by **EBITDA margin expansion** within the business.  **[T_3380422_9]** 

4. **Impact of Data Breach and Outage**  
   **Q:** Any impact from the data breach and outage on financials or net adds?  
   **A:** AT&T does not see any long-term issues on customer sentiment or financials due to the data breach or outage. While they take these incidents seriously and are addressing root causes, they haven't observed impacts on customer metrics. The outage caused **a couple of days** of suppressed activity but did not affect weeks or months. Most financial impacts from the outage have been reflected in **Q1 results**, with a small amount carrying into **Q2**.  **[T_3380422_7]** **[T_3380422_8]** 

5. **Pricing Power and ARPU Growth**  
   **Q:** Does the low churn environment provide pricing power for ARPU growth?  
   **A:** AT&T believes the healthy industry environment and increased customer usage (**30–35% more each year**) provide opportunities to adjust the value equation and take price increases where appropriate. They have been mindful and intelligent in implementing price changes, focusing on products with staying power. This approach has allowed them to **drive ARPU up**, maintain or improve margins, and keep churn low. They anticipate continuing this strategy throughout the year.  **[T_3380422_8]** **[T_3380422_11]** 

6. **Fixed Wireless Strategy**  
   **Q:** Will fixed wireless be a broad opportunity like for peers?  
   **A:** AT&T does not intend to promote fixed wireless in the same manner as competitors. They believe wireless networks are not ideal for serving single-family homes that stream substantial video content at **$50 per month**. Instead, they're investing heavily in **fiber** for long-term flexibility and performance. However, they see a place for fixed wireless in serving businesses with appropriate usage profiles and as a bridging strategy in certain consumer scenarios, such as replacing copper DSL ahead of fiber deployment or in low-utilization areas. Overall, their fixed wireless approach is targeted and strategic, differing from peers.  **[T_3380422_17]** 

7. **EBITDA Growth vs. Guidance**  
   **Q:** With Q1 EBITDA growth at **4.3%**, what's affecting full-year guidance of around **3%**?  
   **A:** While the Mobility and Consumer Wireline segments are performing strongly, AT&T anticipates the Business Wireline segment to be slightly worse than expected due to an accelerated decline in **legacy voice services**, projected to be down in the **mid-teens** percentage range. Despite this, they are confident in managing through these challenges and still delivering around **3% EBITDA growth** for the year, supported by margin expansion in the strong-performing segments.  **[T_3380422_13]** 

8. **ACP Program Impact**  
   **Q:** What is the potential impact of the ACP program discontinuation?  
   **A:** AT&T believes they can navigate the potential sunset of the ACP program without revising their financial guidance. They are proactively notifying customers and working to transition them to other arrangements. They used the program effectively, focusing on **fixed broadband services**, and expect to maintain customer relationships even as the subsidy ends. They do not anticipate significant financial impact from the program's discontinuation.  **[T_3380422_13]** **[T_3380422_15]** 

9. **Customer Acquisition vs. Retention Strategy**  
   **Q:** How is AT&T balancing marketing between acquisition and retention?  
   **A:** AT&T is intentionally focusing on **profitable customer growth** rather than sheer volume. They prioritize acquiring "**high-calorie**" subscribers who bring more value, rather than competing for lower-margin customers. This strategy results in lower gross adds but is balanced with **low churn** and higher service revenues. Their marketing spend is rigorously allocated to segments that offer sustainable growth and profitability.  **[T_3380422_10]** 

10. **Underpenetrated Segments Strategy**  
    **Q:** When will share gains in underpenetrated segments materialize?  
    **A:** AT&T is making progress in underpenetrated segments like **SMB**, **value**, and cross-selling **fiber to wireless customers** and vice versa. They expect to see progress throughout **2024** as they refine their product lineup and distribution strategies. While ramping up in the value segment has been slower, they anticipate making strides this year, aligned with their business plan and performance expectations.  **[T_3380422_14]** 

11. **BEAD Investments Timing**  
    **Q:** What's the outlook on BEAD investments?  
    **A:** AT&T views BEAD investments as a **2025 issue**, not impacting **2024 guidance**. Progress at the state level is slow, and they will be selective in participating based on how states approach the program. They may discuss incremental investments in 2025 regarding capital reinvestment, but currently, BEAD is not a front-and-center concern.  **[T_3380422_7]** 

14c54881f4061fde2e4ee56285e7654ff298d916f4a003859496169c102d4c35

- **Slowing wireless device upgrade rates may negatively impact AT&T's financial performance**.  **[T_3337739_12]**  Customers are holding onto devices longer, which could lead to lower equipment revenues and impact margins in the future.
- **Declining Business Wireline revenues due to secular changes and technology shifts**.  **[T_3337739_15]**  The transition from legacy products to next-generation connectivity products is leading to revenue declines, and overall business demand is not offsetting this decline.
- **Competitive pressures from cable operators and MVNOs may impact AT&T's pricing power and subscriber growth**.  **[T_3337739_9]** **[T_3337739_14]**  Concerns were raised about the competitive market, especially from cable and MVNOs, which could affect AT&T's ability to sustain growth in wireless subscribers and maintain ARPU levels.

614bebc7814f6931e10e0468e25dfc1187f70c569978d0ce95fe042de1299aa7

1. **Capital Allocation and Deleveraging**

   **Q:** How will you allocate capital as you approach target leverage?

   **A:** John Stankey emphasized that AT&T's first priority is to invest in the business to ensure sustainable growth, followed by protecting the dividend and achieving their target net debt-to-EBITDA ratio of **2.5x in the first half of 2025**.  **[T_3370672_9]**  Once they reach that point, they will consider options like stock buybacks, further deleveraging, or investing in additional fiber homes, depending on market conditions, stock price, and interest rates.  **[T_3370672_9]**  He highlighted the company's improved balance sheet and the significant optionality they will have in capital allocation decisions.  **[T_3370672_9]** 

2. **Free Cash Flow Guidance and Capex**

   **Q:** What factors influence your free cash flow guidance and capex plans?

   **A:** Pascal Desroches stated that they have good visibility on their capital spend for 2024, which will be heavily weighted towards project spend within the **$21 to $22 billion** range provided.  **[T_3370672_11]**  They also have a good line of sight on cash taxes and expect EBITDA growth.  **[T_3370672_11]**  He doesn't anticipate material headwinds from working capital and is confident in delivering on the free cash flow guidance.  **[T_3370672_11]**  John Stankey added that they are committed to meeting their **30 million fiber passings by 2025** while balancing capital allocation decisions to ensure they meet their commitments.  **[T_3370672_11]** 

3. **Capital Intensity and Free Cash Flow Growth**

   **Q:** Can you discuss your long-term capital intensity and free cash flow growth?

   **A:** John Stankey believes that AT&T should not sustain the current elevated levels of investment indefinitely and expects to operate at mid-teens capital intensity as a percentage of revenue in a steady state.  **[T_3370672_13]**  They are investing in durable infrastructure like fiber, which has long-term benefits.  **[T_3370672_13]**  He mentioned that technologies like Open RAN will help manage capital intensity moving forward.  **[T_3370672_13]**  Pascal Desroches added that the investments are working, and they are committed to finding ways to deliver value to shareholders.  **[T_3370672_13]** 

4. **Wireless Pricing Strategy**

   **Q:** Is there room to increase wireless prices further?

   **A:** John Stankey stated that AT&T has been deliberate about driving price changes where they add value to customers.  **[T_3370672_10]**  They've invested significantly in their networks, and customers are getting more utility, which allows for some pricing movement.  **[T_3370672_10]**  They expect modest ARPU accretion in their guidance, achieved through moving customers to higher-priced plans with more features and some price adjustments.  **[T_3370672_10]** 

5. **Sustainability of Postpaid Growth**

   **Q:** Can you sustain postpaid phone growth amid competition?

   **A:** John Stankey expressed confidence in the sustainability of their performance, noting that the market is healthy.  **[T_3370672_8]**  Despite a slight decline in gross adds in Q4, AT&T managed to outgrow peers by being disciplined on promotions and strategic in channel operations.  **[T_3370672_8]**  They achieved an **incredibly low churn rate** while growing ARPU and driving operating leverage and EBITDA growth.  **[T_3370672_8]**  He expects the strategies and tactics used over the past three years to continue delivering results.  **[T_3370672_8]** 

6. **Economic Outlook and Business Wireline**

   **Q:** What's your outlook on the economy and Business Wireline performance?

   **A:** John Stankey noted that the economy has been resilient and expects it to remain so in 2024, with no significant concerns from consumers or business formations.  **[T_3370672_12]**  On Business Wireline, he acknowledged challenges due to nearly **$100 million of non-recurring items** and weaker wholesale revenues.  **[T_3370672_12]**  However, they are shifting focus to the mid-market, opening new distribution channels, and seeing progress in fiber-driven revenues.  **[T_3370672_12]**  He is optimistic about combined wireless and wireline EBITDA growth in the business segment.  **[T_3370672_12]** 

7. **AT&T Internet Air Expansion**

   **Q:** How do you plan to scale AT&T Internet Air?

   **A:** John Stankey explained that while AT&T will not push fixed wireless as aggressively as competitors, they see it serving certain market segments, particularly small businesses with specific usage profiles.  **[T_3370672_10]**  They plan to leverage AT&T Internet Air to transition away from legacy copper assets and meet obligations where they haven't built fiber.  **[T_3370672_10]**  He emphasized that it will be a tool to achieve aggregate broadband growth but not a primary focus.  **[T_3370672_10]** 

8. **ACP Exposure and BEAD Participation**

   **Q:** How will ACP uncertainty and BEAD impact your business?

   **A:** John Stankey expressed that regardless of the fate of the Affordable Connectivity Program (ACP), AT&T will manage effectively.  **[T_3370672_9]**  They've provided guidance knowing the outcome could go either way and have plans to respond accordingly.  **[T_3370672_9]**  On BEAD participation, he mentioned that they will be targeted in their approach, focusing on states with favorable policies that encourage private investment.  **[T_3370672_9]**  Texas was highlighted as a state with sound policies where they may have good opportunities.  **[T_3370672_9]** 

db6ad38e4d42a4c4ac7f39e76741f27884a7fc90bdc8880433a4aa63b80649f4

- **Ongoing network outages and data breaches may impact customer trust and future financials.** Despite management's efforts, AT&T has faced instances where it has "let down customers" due to these issues. John Stankey acknowledged that "we have to actually address your question and work through these issues" and that "we're not dismissing the issue in any way, shape or form." ( **[T_3394093_10]** )
- **Expected moderation in wireless industry volumes and potential limits on pricing power could pressure AT&T's revenue growth.** John Stankey noted that "we're going to see a little bit of moderating volumes in aggregate in the industry" and acknowledged that "I don't think this is an issue of price increases or price increases safe." ( **[T_3394093_13]** )
- **Spectrum policy concerns and lack of new spectrum availability may limit AT&T's capacity expansion in wireless.** John Stankey expressed that "I do not think spectrum policy in this country is on the right path right now" and that the company needs to "use every trick in the book" to deal with growth, indicating potential challenges in meeting future capacity demands. ( **[T_3394093_11]** )

083490f7630883163f1f4dc43cab67524f548534f27e1f50cfe5000ef457e405

- **AT&T is experiencing sustainable growth in wireless postpaid phone subscribers**, with expectations to continue this trend in 2024. The company has been disciplined in promotions, maintained low churn levels, and grown ARPU, driving operating leverage and EBITDA growth.  **[T_3370672_2]**
- **The company's fiber investment strategy is yielding strong results**, with a goal to pass 30 million fiber locations by the end of 2025. AT&T remains committed to this target and sees opportunities for further growth, potentially expanding to an additional 10 to 15 million locations.  **[T_3370672_3]** **[T_3370672_8]**
- **AT&T is on track to achieve its net debt to adjusted EBITDA ratio target of 2.5x by the first half of 2025**, improving financial flexibility for capital allocation decisions such as debt reduction, share buybacks, or further investment in growth opportunities, enhancing shareholder value.  **[T_3370672_12]**

6efd152b24ffc1df727858eaff559db6c9af464c72af2865a1409edb027ec2c3

- **Accelerated decline in the Business Wireline segment** due to a faster-than-expected decline in legacy voice services, leading management to revise EBITDA decline expectations to the mid-teens range from the prior outlook of around 10%. This transition is anticipated to be "a little bit painful for a couple of quarters."  **[T_3380422_13]** ,  **[T_3380422_16]**
- **Declining cash distributions from DIRECTV**, with management expecting approximately a 20% annual decline. This reduction in cash flow contributions from DIRECTV could negatively impact AT&T's free cash flow.  **[T_3380422_12]**
- **Lower wireless gross additions over several quarters**, which may indicate challenges in customer acquisition or market saturation. While churn has improved, the decrease in gross adds could raise concerns about future growth prospects in the Mobility segment.  **[T_3380422_10]**

8edb8f88bd9a8e7d0fb852f7a8dc955bfc7435b0b2a077cdbb11fe3643446e50

- **Significant decline in Business Wireline EBITDA**: AT&T's Business Wireline segment reported a **19% decline in EBITDA in Q4** due to weaker-than-expected wholesale revenues and non-repeating one-time items. Efforts to improve this segment are progressing **"a little slower than I might like,"** according to CEO John Stankey  **[T_3370672_12]** ,.  **[T_3370672_5]**
- **Continued decline in DIRECTV cash distributions**: Cash distributions from DIRECTV in 2023 were **$3.7 billion, down about $750 million** compared to the prior year. AT&T expects these distributions to **decline at a similar rate in 2024 and thereafter**, which may negatively impact free cash flow.  **[T_3370672_5]**
- **High capital expenditures may pressure free cash flow**: AT&T's **capital intensity remains high** compared to peers. While the company expects to reduce capital intensity to mid-teens percentage of revenue in the long term, achieving this is contingent upon continued strong performance, indicating potential risk if expectations are not met.  **[T_3370672_13]**

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- **AT&T's fiber ARPU increased by approximately 9%**, driven by customers upgrading to higher-speed plans, with significant room for further growth as they deploy 5-gig networks.  **[T_3337739_8]**
- **AT&T has achieved $6 billion in cost reductions over the past three years**, exceeding its targets, and plans to achieve an additional **$2 billion in cost savings over the next three years**.  **[T_3337739_12]**
- **Wireless churn remains low and stable at 0.79%**, with AT&T focusing on attracting high-value, profitable customers, resulting in improved revenue share and an expectation of a strong fourth quarter performance.  **[T_3337739_9]**

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AT&T Inc (T)

Financials